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The Consolidated Omnibus Budget Reconciliation Act (COBRA) allows employees and dependents to continue group health coverage after events like job loss or divorce. HIPAA governs medical privacy, ERISA regulates benefits, and FLSA governs wage/hour laws. Payroll professionals often handle COBRA premium deductions.

Employers must file Forms W-2 and W-3 with the Social Security Administration by January 31 (same deadline for furnishing W-2s to employees). Previously, February 28 was the deadline for paper filings, but the IRS standardized the deadline to January 31. On APA exams, compliance questions frequently test knowledge of reporting deadlines.

Terminated employees receiving pay indicates weak termination processing controls. Payroll systems must promptly update employment status and remove terminated employees from active payroll. System integration helps, but the root cause is improper or delayed termination entry. W-2 distribution is unrelated. On APA exams, audit-related scenarios test candidates’ ability to identify weaknesses and recommend corrective measures. Payroll professionals must implement controls such as timely notifications from HR, automated status updates, and reconciliation reports to prevent improper payments.

The Equal Employment Opportunity Commission (EEOC) enforces the Equal Pay Act, prohibiting sex-based wage discrimination. DOL enforces FLSA, IRS enforces tax compliance, and SSA handles Social Security. On APA exams, agency enforcement responsibilities are common test topics.

Role-based access control limits system privileges based on job roles, ensuring payroll confidentiality and integrity. For example, clerks may enter data, but only managers can approve changes. Check-signature policies and direct deposit are controls, but not access restrictions. On APA exams, candidates must demonstrate knowledge of payroll system security features critical for compliance and audit readiness.