APA Exam CPP-Remote Topic 7 Question 52 Discussion

Actual exam question for APA's CPP-Remote exam

Question #: 52
Topic #: 7

[All CPP-Remote Questions]

With regard to EEs' reported tips, the ER must:

Awithhold and pay only the EEs' portion of FICA taxes on tips

Breport tax on tips separately when making an employment tax deposit

Creport tips as wages on Form W-2 and pay the ER portion of FICA taxes

Dreport and pay the ER portion of FICA taxes on the portion of cash tips above the federal minimum wage

Show Suggested Answer

Suggested Answer: C

by Alana at Aug 02, 2024, 02:49 PM

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4 days ago

Haha, the ER must be feeling the tip-top pressure on this one! I'd say option B, but I'm open to hearing what the others think.

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5 days ago

Option D seems logical, but I'm worried it might not be the complete answer. Gotta double-check the details on this one.

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8 days ago

I'm not sure, but I think the ER should withhold and pay only the EEs' portion of FICA taxes on tips.

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10 days ago

I agree with Domitila. It makes sense to report tips as wages and pay the ER portion of FICA taxes.

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15 days ago

I think the ER must report tips as wages on Form W-2 and pay the ER portion of FICA taxes.

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18 days ago

Ah, this one's tricky! I'm leaning towards option C, but I'm not 100% sure.

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