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APA Certified Payroll Professional (CPP) Practice Tests & Test Prep by Exam Edge - Topics



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Understanding what is on the APA Certified Payroll Professional exam is crucial step in preparing for the exam. You will need to have an understanding of the testing domain (topics covered) to be sure you are studying the correct information.

  • Directs your study efforts toward the most relevant areas.
  • Ensures efficient and adequate preparation.
  • Helps identify strengths and weaknesses.
  • Allows for a focused approach to address gaps in understanding.
  • Aligns your preparation with the exam's expectations.
  • Increases the likelihood of success.
  • Keeps you informed about your field's current demands and standards.
There is no doubt that this is a strategic step in achieving certification and advancing your career.

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Understanding the exact breakdown of the APA Certified Payroll Professional test will help you know what to expect and how to most effectively prepare. The APA Certified Payroll Professional has 125 multiple-choice questions The exam will be broken down into the sections below:

APA Certified Payroll Professional Exam Blueprint
Domain Name % Number of
Questions
CORE PAYROLL CONCEPTS 24% 30
     Worker Status
     Fair Labor Standards Act
     Employment Taxes
     Employee Benefits
     Employee/Employer Forms
     Professional Responsibility
     Methods and Timing of Pay
COMPLIANCE/RESEARCH AND RESOURCES 16% 20
     Escheatment
     Legislative and Regulatory Requirements
     Reporting
     Record Retention
     Penalties
     Global
     Multi-state Taxation / Reporting
CALCULATION OF THE PAYCHEC 20% 25
     Compensation/Benefits
     Fringe Benefits
     Involuntary Deductions/Taxes
     Voluntary Deductions
     Employer Taxes and Contributions
     Total Payroll
PAYROLL PROCESS AND SUPPORTING SYSTEMS AND ADMINISTRATION 12% 15
     Maintain Master File Components
     Concepts and Functionalities
     Business Continuity Plan
     Technology Evaluation
     Upgrade/Implementation Knowledge
     System Maintenance/Updates
     System/Project Implementations
PAYROLL ADMINISTRATION AND MANAGEMENT 10% 13
     Policies and Procedures
     Management Skills and Practices
     Customer Service and Communication
     Staffing, Employee Development, and Core Competencies
AUDITS. 9% 11
     Internal Controls
     Payroll System Controls
     Accounting System Controls
     Audit Policies and Procedures
     Third Party Controls
ACCOUNTING 9% 11
     Financial Reporting
     Accounting Principles
     Payroll Journal Entry
     Account Reconciliation


APA Certified Payroll Professional - Exam Topics Sample Questions

How do you calculate the EI premium due on vacation pay?





Correct Answer:
employee’s insurable earnings x current ei premium rate.
to accurately calculate the employment insurance (ei) premium due on vacation pay, you need to follow a specific formula:

start by identifying the total amount of vacation pay that the employee will receive. this amount is considered as part of the employee's insurable earnings. insurable earnings are those earnings on which ei premiums are calculated and include regular wages, bonuses, and vacation pay, among other types of compensation.

next, you will need to know the current ei premium rate. this rate is set annually by the government and may vary each year. it is expressed as a percentage. for instance, if the ei premium rate for the year is 1.58%, this should be converted into a decimal for calculation purposes (i.e., 1.58% becomes 0.0158).

using the identified insurable earnings (the vacation pay) and the current ei premium rate, calculate the ei premium due by multiplying these two figures. for example, if an employee receives $1,000 in vacation pay and the ei premium rate is 1.58%, the calculation would be $1,000 x 0.0158 = $15.80. this means $15.80 would be the ei premium due on the vacation pay.

it is important to ensure that the total amount of ei premiums deducted for the year does not exceed the maximum insurable earnings ceiling set for the year. if the employee's cumulative ei premiums reach this ceiling before the end of the year, no further ei premiums should be deducted from any type of earnings, including vacation pay.

in summary, calculating the ei premium on vacation pay involves multiplying the amount of vacation pay by the current ei premium rate. this straightforward multiplication gives you the amount of ei premium that needs to be deducted from the vacation pay. always be mindful of the annual maximums both for insurable earnings and ei premium contributions to ensure compliance with regulations.