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

2 months ago

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

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Ria

29 days ago

C) Social Security and Medicare only

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Brandon

1 months ago

B) FIT and Social Security only

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Elvera

1 months ago

A) Medicare and FIT only

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Clement

3 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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Miriam

1 months ago

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

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Alex

1 months ago

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

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Johna

1 months ago

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

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Meaghan

3 months ago

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

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Teddy

3 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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Leontine

1 months ago

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

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Simona

2 months ago

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

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Corinne

2 months ago

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

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Nana

2 months ago

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

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Una

3 months ago

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

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Xuan

2 months ago

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

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Keshia

2 months ago

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

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Lisbeth

3 months ago

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

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Georgiann

1 months ago

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

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Mozell

1 months ago

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

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Leatha

1 months ago

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

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Candra

1 months ago

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

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Jennifer

1 months ago

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

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Venita

2 months ago

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

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Lang

2 months ago

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

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Jackie

3 months ago

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

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Ellen

3 months ago

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

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Sherita

3 months ago

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

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