APA Exam FPC-Remote Topic 4 Question 4 Discussion

Actual exam question for APA's FPC-Remote exam

Question #: 4
Topic #: 4

[All FPC-Remote Questions]

Which of the following taxes are NOT withheld from allocated tips?

AMedicare and FIT only

BFIT and Social Security only

CSocial Security and Medicare only

DFIT, Social Security, and Medicare only

Show Suggested Answer

Suggested Answer: D

Allocated tips are NOT subject to withholding unless reported by the employee.

If not reported, FIT, Social Security, and Medicare (D) are not withheld but are still taxable.

IRS Publication 531 (Reporting Tip Income)

by Mike at Apr 07, 2025, 09:46 AM

Limited Time Offer

25%

Off

Contribute your Thoughts:

Submit Cancel

7 days ago

I'm pretty sure it's C. Social Security and Medicare only. Tips are tricky when it comes to taxes!

upvoted 0 times

...

9 days ago

I agree with Sherita, because allocated tips are not subject to Medicare and FIT withholding.

upvoted 0 times

...

10 days ago

I think the answer is A) Medicare and FIT only.

upvoted 0 times

...