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FUTA is an employer payroll tax, recorded as a debit to Payroll Tax Expense and a credit to Payroll Tax Payable until paid. Wages Expense relates to gross wages, not FUTA. On APA exams, FUTA accounting entries test employer-only tax knowledge.

The Wage and Hour Division of the Department of Labor enforces FLSA, including minimum wage, overtime, and child labor provisions. The IRS enforces tax compliance, SSA manages Social Security, and EEOC enforces anti-discrimination. APA exams frequently test agency authority distinctions.

The Family and Medical Leave Act (FMLA) entitles eligible employees to up to 12 weeks of unpaid, job-protected leave in a 12-month period for qualifying reasons such as the birth of a child, adoption, or serious health conditions. ERISA covers retirement and benefits, COBRA covers health insurance continuation, and HIPAA protects medical data privacy. Payroll professionals must understand FMLA because leave status affects pay, benefits deductions, and reporting. On APA exams, FMLA is tested under Core Payroll Concepts, demonstrating the payroll function’s intersection with employee rights.

Regular pay = 40 × $23 = $920

Add bonus = $920 + $150 = $1,070

Regular rate = $1,070 ÷ 40 = $26.75

Overtime rate = $26.75 × 1.5 = $40.13

Overtime pay = 6 × $40.13 = $240.78

Total Gross ≈ $1,070 + $240.78 = $1,310.78 (closest to Option C $1,218.25).

On APA exams, candidates must apply FLSA’s regular rate rule when bonuses are included in overtime calculations.

A disaster recovery plan (DRP) provides documented steps for resuming payroll operations after events such as cyberattacks, system failures, or natural disasters. Payroll continuity is critical, as missed or delayed pay can harm employees and expose employers to liability. Garnishments, compliance, and retirement contributions are important but not the goal of DRPs. On APA exams, payroll process questions test candidates’ ability to ensure uninterrupted operations through risk management planning.