APA Exam CPP-Remote Topic 9 Question 59 Discussion

Actual exam question for APA's CPP-Remote exam

Question #: 59
Topic #: 9

How may FIT be withheld from separation pay and accrued vacation wages totaling $20,000 that are paid at the time of termination and identified separately on the EE's pay stub, if the EE has been paid $25,000 so far this year and had income tax withheld from her most recent wage payment?

Ausing the aggregate method only

Busing the prior 12 months' tax rate

Cat the optional flat rate for all payouts at termination only

Dat the optional flat rate or using the aggregate method

Show Suggested Answer

Suggested Answer: D

by Providencia at Sep 19, 2024, 06:27 PM

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Tish

5 months ago

D all the way! The question doesn't specify a preference, so why not go with the option that lets you choose between two valid methods? It's like a tax choose-your-own-adventure!

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Barbra

4 months ago

B) using the prior 12 months' tax rate

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Lou

4 months ago

D) at the optional flat rate or using the aggregate method

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Quentin

4 months ago

A) using the aggregate method only

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Lashawnda

5 months ago

Hmm, that's interesting. Can you explain your rationale for choosing option D?

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Pearlene

5 months ago

I disagree, I believe the answer is D) at the optional flat rate or using the aggregate method.

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Thurman

5 months ago

I'm going with D. Giving the employer the choice between the flat rate or aggregate method seems like the most reasonable approach here. Plus, it's always good to have options when dealing with those pesky tax withholdings.

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Tom

5 months ago

Hmm, I'm torn between B and D. The prior 12 months' tax rate could be a simpler option, but the flexibility of D might be better. Gotta love these tricky tax questions!

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Colby

4 months ago

But B could be easier to calculate.

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Alesia

4 months ago

True, but D gives you more flexibility in the long run.

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Claribel

4 months ago

Yeah, D seems like the safer choice.

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Derrick

4 months ago

I think D is the way to go. It gives you options.

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Antonio

5 months ago

D definitely sounds like the way to go. The question mentions the employee has been paid $25,000 so far this year, so the aggregate method might be the most accurate approach.

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Soledad

5 months ago

I think the correct answer is D. It gives you the flexibility to use the optional flat rate or the aggregate method, which seems more practical in this scenario.

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