CPP CERTIFIED PAYROLL PROFESSIONAL
COMPREHENSIVE EXAM 2026 PREMIUM
SOLUTION GUIDE
◉FLSA. Answer: FLSA - Sets min. wage.requires record keeping,
places restrictions on types of work minors can do. It DOES NOT
govern vacation, sick, jury duty, holiday, lunch breaks. Freq of pay or
restrictions on hours required to work. This area is handled by state
law. Federal Min Wage = 7.25 hour. OT HOURS-- everything over 40
hours in the work week. Exempt ees must be paid at least $455 a
week salary or fee basis. Primary duties must consist of performing
non manual or office work related to the general business
operations. OR Permiting work that is directly related to academic
instruction. Tips- 2.13/HR hourly rate and tips must meet min wage
requirement in fed/state. Must also receive $30 in tips per month.
TIP CREDIT- 5.12 allowed credit by the employer when tips are at
least 5.12/hr. REG RATE OF PAY- calculation is Reg rate of pay=total
reg pay divided by # of hours worked. Fluctuating Work Week-
Change of schedule based on business need. ok as long as ees are
paid for OT. Fixed wkly salary is high enough that they dont fall
below min wage. Comp Time Private Sector- Allowed as long as the
time off is in the same pay period. 11/2 hours given for ever hour of
OT worked. State and/or Gov workers can have the comp time
rather than OT pay if; the EE agreees to it, ees are given reasonable
time to use it, Can accumulate 240 hours of comp time OR 160 hours
of OT. Above must be paid. As for public safety ees, they can have a
max comp time of 480 and 320 OT hrs comp. CHANGING WORK
, WEEK- Is whn the workweek changes from M-SUN to SUN-SAT. OT is
paid on the greater of the 2. WHITE COLLAR are: administrative,
executives, professionals, learned professionals, creative
professionals, computer professionals, outside sales. WORK WEEK-
determines the 7 consecutive 24 hour period and when OT is
calculated. COMPENSABLE TIME- Non Ex. ees must be
◉Employement Taxes. Answer: Exams administered from
September 15, 2018 through September 13, 2019, feature questions
based on federal laws and regulations in effect as of January 1, 2018.
FIT all employees are subject to FIT. ER are responsible to pay.
Taxable wages is all comp. not specifically excluded from taxable
income. Fringe benefits are usualy taxable. SEE WAGE BRACKET
METHOD and PERCENTAGE METHOD tables. See SUPPLEMENTAL
TAX Methods wage bracket and aggregate. FUTA WAGE BASE. EEs
only are subject to FUTA. Rate is 6% but credit is 5.4% leaving the
tax at .6% pay on the first 7,000 in taxable wages. Exclusions to
FUTA are sick or disabilty paid more than 6 months after the last
month of employ. Workers comp pay, payments to Cafe 124 plan,
non cash payments, qualified moving expenses, dealth or disabily
payments, edu reimb., GTL, meals and lodging, wages paid after
death, tips not reported to ER. SS Wage base is 128,400 and is 6.2%
of earnings. ER pay match. MEDICARE-There is no limit on the
amount of wages subject to the other portion of the FICA tax, the
1.45% Medicare tax additional .9% must be w/h from the ee for
taxable earnings over 200,000. ER does not match. Backup
withholding requirements- Backup Withholding Rate Drops in 2018.
As a result of the recently passed tax reform bill, the Tax Cuts and
Jobs Act, the backup withholding rate will be reduced from 28% to
COMPREHENSIVE EXAM 2026 PREMIUM
SOLUTION GUIDE
◉FLSA. Answer: FLSA - Sets min. wage.requires record keeping,
places restrictions on types of work minors can do. It DOES NOT
govern vacation, sick, jury duty, holiday, lunch breaks. Freq of pay or
restrictions on hours required to work. This area is handled by state
law. Federal Min Wage = 7.25 hour. OT HOURS-- everything over 40
hours in the work week. Exempt ees must be paid at least $455 a
week salary or fee basis. Primary duties must consist of performing
non manual or office work related to the general business
operations. OR Permiting work that is directly related to academic
instruction. Tips- 2.13/HR hourly rate and tips must meet min wage
requirement in fed/state. Must also receive $30 in tips per month.
TIP CREDIT- 5.12 allowed credit by the employer when tips are at
least 5.12/hr. REG RATE OF PAY- calculation is Reg rate of pay=total
reg pay divided by # of hours worked. Fluctuating Work Week-
Change of schedule based on business need. ok as long as ees are
paid for OT. Fixed wkly salary is high enough that they dont fall
below min wage. Comp Time Private Sector- Allowed as long as the
time off is in the same pay period. 11/2 hours given for ever hour of
OT worked. State and/or Gov workers can have the comp time
rather than OT pay if; the EE agreees to it, ees are given reasonable
time to use it, Can accumulate 240 hours of comp time OR 160 hours
of OT. Above must be paid. As for public safety ees, they can have a
max comp time of 480 and 320 OT hrs comp. CHANGING WORK
, WEEK- Is whn the workweek changes from M-SUN to SUN-SAT. OT is
paid on the greater of the 2. WHITE COLLAR are: administrative,
executives, professionals, learned professionals, creative
professionals, computer professionals, outside sales. WORK WEEK-
determines the 7 consecutive 24 hour period and when OT is
calculated. COMPENSABLE TIME- Non Ex. ees must be
◉Employement Taxes. Answer: Exams administered from
September 15, 2018 through September 13, 2019, feature questions
based on federal laws and regulations in effect as of January 1, 2018.
FIT all employees are subject to FIT. ER are responsible to pay.
Taxable wages is all comp. not specifically excluded from taxable
income. Fringe benefits are usualy taxable. SEE WAGE BRACKET
METHOD and PERCENTAGE METHOD tables. See SUPPLEMENTAL
TAX Methods wage bracket and aggregate. FUTA WAGE BASE. EEs
only are subject to FUTA. Rate is 6% but credit is 5.4% leaving the
tax at .6% pay on the first 7,000 in taxable wages. Exclusions to
FUTA are sick or disabilty paid more than 6 months after the last
month of employ. Workers comp pay, payments to Cafe 124 plan,
non cash payments, qualified moving expenses, dealth or disabily
payments, edu reimb., GTL, meals and lodging, wages paid after
death, tips not reported to ER. SS Wage base is 128,400 and is 6.2%
of earnings. ER pay match. MEDICARE-There is no limit on the
amount of wages subject to the other portion of the FICA tax, the
1.45% Medicare tax additional .9% must be w/h from the ee for
taxable earnings over 200,000. ER does not match. Backup
withholding requirements- Backup Withholding Rate Drops in 2018.
As a result of the recently passed tax reform bill, the Tax Cuts and
Jobs Act, the backup withholding rate will be reduced from 28% to
