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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Francoise

1 months ago

Tips? More like a tipping point for the ER! I'm guessing option A, but I'm just winging it here.

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Celeste

2 days ago

I'm not sure, but I think it's important for employers to handle tips correctly to avoid any issues with taxes.

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Laurel

12 days ago

No, I believe it's option D, where the employer reports and pays the employer portion of FICA taxes on the portion of cash tips above the federal minimum wage.

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Twila

14 days ago

I think it's actually option C, where the employer reports tips as wages on Form W-2 and pays the employer portion of FICA taxes.

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Ernie

2 months ago

Hmm, the ER's got to handle those tips like a pro. I'm going with C, but I'm curious to see what the rest of the class thinks.

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Genevive

12 days ago

I'm not sure, but I think C makes sense. It's important for the ER to handle tips properly to comply with tax regulations.

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Vicente

14 days ago

I agree, C seems to be the most logical choice. The ER must pay the employer portion of FICA taxes on the reported tips.

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Yuki

1 months ago

I think C is the correct answer. Tips should be reported as wages on Form W-2.

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Sheridan

2 months 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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Shawna

1 months ago

I still think option B is the way to go, reporting tax on tips separately when making an employment tax deposit.

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Marica

1 months ago

I'm leaning towards option D, reporting and paying the ER portion of FICA taxes on the portion of cash tips above the federal minimum wage.

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Odette

1 months ago

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

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Yuriko

2 months ago

I think option C is the correct one.

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Jimmie

2 months 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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Lachelle

2 months 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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Simona

2 months 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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Domitila

2 months 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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Anabel

2 months ago

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

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Mona

16 days ago

Got it, thanks for clarifying! Option C it is then.

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Amie

17 days ago

Yes, you're right. Option C states that the employer must report tips as wages on Form W-2 and pay the ER portion of FICA taxes.

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Cassi

20 days ago

But what about the ER portion of FICA taxes? Shouldn't the employer also pay that?

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Richelle

25 days ago

I think option C is correct because tips should be reported as wages on Form W-2.

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