APA FPC-Remote Exam - 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

Get Premium FPC-Remote Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Ammie

5 months ago

Wait, are you sure? I thought some tips were exempt.

upvoted 0 times

...

Dulce

5 months ago

I agree, definitely D!

upvoted 0 times

...

Stephane

5 months ago

I think it's D, all three are withheld.

upvoted 0 times

...

Mozelle

6 months ago

I thought Medicare was included too, this is confusing!

upvoted 0 times

...

Hyman

6 months ago

Actually, only FIT and Social Security are withheld from allocated tips.

upvoted 0 times

...

Carman

6 months ago

I recall that Medicare is typically withheld, so maybe it’s A? I need to double-check my notes on this.

upvoted 0 times

...

Jordan

6 months ago

I’m a bit confused. I thought all three taxes were withheld from allocated tips, but now I’m not so sure.

upvoted 0 times

...

Lorrie

7 months ago

I practiced a similar question where we had to identify which taxes apply to tips. I feel like the answer might be D, but I could be mixing it up.

upvoted 0 times

...

Brock

7 months ago

I think I remember that allocated tips are usually subject to FIT and Social Security, but I'm not entirely sure about Medicare.

upvoted 0 times

...

Sylvie

7 months ago

I think the key here is to focus on which taxes are specifically NOT withheld from allocated tips. The answer must be the one that lists the taxes that are not withheld.

upvoted 0 times

...

Fausto

7 months ago

Hmm, I'm a little unsure about this one. I'll have to review my notes on payroll taxes to make sure I have the right information before selecting an answer.

upvoted 0 times

...

Rene

7 months ago

I've got this! The answer is B - FIT and Social Security only are withheld from allocated tips. Medicare is the one that is not withheld.

upvoted 0 times

...

Okay, let me think this through. I know FIT (Federal Income Tax) is withheld, but I'm not sure about the other taxes. I'll have to carefully read through the options to determine which ones are not withheld.

upvoted 0 times

...

Karl

8 months ago

This question seems straightforward, but I want to double-check the tax types to make sure I understand which ones are withheld from allocated tips.

upvoted 0 times

...

Colette

1 year ago

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

upvoted 0 times

Ria

11 months ago

C) Social Security and Medicare only

upvoted 0 times

...

Brandon

11 months ago

B) FIT and Social Security only

upvoted 0 times

...

Elvera

12 months ago

A) Medicare and FIT only

upvoted 0 times

...

Clement

1 year 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.

upvoted 0 times

Miriam

11 months ago

User 3: I agree with Alex, D seems like the correct answer.

upvoted 0 times

...

Alex

12 months ago

User 2: I'm not sure, but I think it's A. Medicare and FIT only.

upvoted 0 times

...

Johna

12 months ago

User 1: I think I'll go with D. FIT, Social Security, and Medicare only.

upvoted 0 times

...

Meaghan

1 year ago

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

upvoted 0 times

...

Teddy

1 year ago

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

upvoted 0 times

Leontine

11 months ago

I'm not sure, but I think it's A. Medicare and FIT only.

upvoted 0 times

...

Simona

12 months ago

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

upvoted 0 times

...

Corinne

1 year ago

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

upvoted 0 times

...

Nana

1 year ago

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

upvoted 0 times

...

Una

1 year ago

Option D has to be the right answer. Gotta pay those taxes on those tip earnings!

upvoted 0 times

Xuan

1 year ago

Yeah, it's important to report all income, including tips, to avoid any issues with the IRS.

upvoted 0 times

...

Keshia

1 year ago

I think it's D too. Can't avoid paying those taxes.

upvoted 0 times

...

Lisbeth

1 year ago

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

upvoted 0 times

Georgiann

12 months ago

I agree with you, it's definitely not C. Social Security and Medicare only.

upvoted 0 times

...

Mozell

12 months ago

I'm not sure, but I think it's B. FIT and Social Security only.

upvoted 0 times

...

Leatha

12 months ago

No, I believe it's A. Medicare and FIT only.

upvoted 0 times

...

Candra

12 months ago

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

upvoted 0 times

...

Jennifer

12 months ago

I agree with you, it's definitely not C. Social Security and Medicare only.

upvoted 0 times

...

Venita

1 year ago

I'm not sure, but I think it's B. FIT and Social Security only.

upvoted 0 times

...

Lang

1 year ago

No, I believe it's A. Medicare and FIT only.

upvoted 0 times

...

Jackie

1 year ago

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

upvoted 0 times

...

Ellen

1 year ago

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

upvoted 0 times

...

Sherita

1 year ago

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

upvoted 0 times

...