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

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Colette

20 days ago

Wait, are we talking about tips? I thought this was a question about my lunch order. #TaxesAreTasty

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Clement

1 months ago

This is a tough one, but I think I'll go with C. Social Security and Medicare only. Tip income is a special case.

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Meaghan

1 months ago

I'm not sure, but I think the answer might be C) Social Security and Medicare only.

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Teddy

1 months ago

Hmm, I'm going to go with B. FIT and Social Security only. Can't forget about the Social Security tax!

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Simona

22 hours ago

I agree with you, B. FIT and Social Security only.

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Corinne

13 days ago

I believe it's D. FIT, Social Security, and Medicare only.

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Nana

19 days ago

I think it's C. Social Security and Medicare only.

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2 months ago

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

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