CPP for 2026/2027 Exam with all Correct & 100%
Verified Answers |Latest Version |Already Graded A+
Administrative EE's primary duties? ✔Correct Answer-An administrative exempt employee's
primary duties consist of performing nonmanual or office work directly related to the management
of business operations of the employer or customers.
Nondiscretionary bonus ✔Correct Answer-Nondiscretionary bonus -Nondiscretionary bonus is a
contractual or agreed-upon bonus or incentive. Nondiscretionary bonuses paid to nonexempt EE's
ARE included in the regular rate of pay in the week earned
Workweek ✔Correct Answer-Any fixed, recurring period of 168 consecutive hours (7 days times 24
hours = 168 hours).
What is an IRS lock in letter? ✔Correct Answer-IRS lock in letterIRS letter tells an ER how to with
hold FIT form an EE no mater what was submitted on W-4 Form
When must IRS lock in letter be put in? ✔Correct Answer-IRS lock in letter time45-60 days is when
it must be implemented and usually has the IRS lock in letter time45-60 days is when it must be
implemented and usually has the date in the letter date in the letter
FLSA highly compensated employee: ✔Correct Answer-FLSA highly compensated employee-AN
EXEMPT HIGHLY COMPENSATED EMPLOYEE UNDER THE FLSA IS AN EMPLOYEE WHO MEETS ONE OF
THE DUTIES TESTS FOR EXECUTIVE, ADMINISTRATIVE OR PROFESSIONAL EMPLOYEES AND HAS
ANNUAL COMPENSATION OF $107,432FLSA
Four types of exempt employees: APES ✔Correct Answer-THE FOUR WHITE COLLAR TYPES OF
EXEMPT EMPLOYEES ARE ADMINISTRATIVE, EXECUTIVE, PROFESSIONAL, AND OUTSIDE SALES.
Professional EE's primary duties- ✔Correct Answer-An exempt professional employee is either a
learned or creative professional. Learned professionals work requires advanced knowledge. Creative
professionals work involves invention or talent.
What amount can tipped ee's be paid? ✔Correct Answer-Tipped EE's may be paid NO LESS than
$2.13 per hour.
When must a W4 be completed? ✔Correct Answer-New hires or FIT will be single and no other
adjustments. Others when their tax liabilities increase.
Executive EE's primary duties? ✔Correct Answer-The management of the business, direction 2 or
more full-time ee's, the authority to recommend hiring and firing.
What is the W4-S form? ✔Correct Answer-Its for Sick pay FIT with holding, allows EE's the ability to
request income tax with holding from third-party sick pay.
If no W4-S form is received, how is FIT handled? ✔Correct Answer-No federal income tax with be
withheld.
,What is the W4-P? ✔Correct Answer-Withholding for Pension or annuity payments. If not received
then with hold as single no other adjustments.
When is an amended W4 Implemented? ✔Correct Answer-When EE submits an amended W4 -
must be implemented with the first payroll no later than 30 days after form is submitted.
How can W4 be made invalid? ✔Correct Answer-When there are any alterations, additions or
deletions to the form. Claiming a flat dollar or percentage. Verbally
What does exempt W4 form mean? ✔Correct Answer-EE submits an exempt W4, the EE will have
no FIT with held for remainder of year. The form expires on 2/15 of the year after it was submitted.
What is a W4? ✔Correct Answer-Employees withholding certificate for federal income tax.
What is the minimum weekly salary Exempt Employees? ✔Correct Answer-FLSA - White Collar
Exemptions rules, must be paid a minimum salary of $684 per week. Teachers, lawyers and attorneys
are not required to be paid a salary.
What is the reasonable basis test? ✔Correct Answer-Reasonable basis test allows a worker
classified as an employee under the common law test to be treated as an independent contractor.
When are meal periods time worked? ✔Correct Answer-A meal period that is not at least 30
minutes of uninterrupted time is time worked under the FLSA.
Engaged to be waiting ✔Correct Answer-Time worked because the employer requires the
employee to wait to begin work
IRS misclassification penalties: #2 ✔Correct Answer-THE EMPLOYER IS LIABLE FOR 100% OF FIT
AND 100% OF SOCIAL SECURITY AND MEDICARE (BOTH EMPLOYEE AND EMPLOYER SHARE) WHEN A
WORKER IS INTENTIONALLY MISCLASSIFIED AS AN INDEPENDENT CONTRACTOR.
Federal minimum wage ✔Correct Answer-$7.25
Who uses economic realities factors? ✔Correct Answer-THE DOL USES THE ECONOMIC REALITIES
FACTORS TO DETERMINE IF A WORKER IS AN EMPLOYEE OR AN INDEPENDENT CONTRACTOR UNDER
THE "TO SUFFER OR PERMIT TO WORK" CONCEPT.
E-Verify ✔Correct Answer-Internet-based verification system that allows employers to verify new
hire identity and eligibility to work in the US. Government contractors and ERs in some states are
required to use it.
Form I-9 ✔Correct Answer-Employment Eligibility Verification
Two parts of I9? ✔Correct Answer-Part 1 - filed by employee and Part 2 employers fill out
documents. A=proves identity and authorization. B= Identity only, C=Authorization
How long to keep I9 form? ✔Correct Answer-For at least 3 years from the date of hire or 1 year
from date of termination, whichever is later. - Practice this one!
When to fill out I9? ✔Correct Answer-No later than the day they begin work. The ER portion with
in 3 days of Hire.
, What is the 8/80 rule? ✔Correct Answer-THE FLSA 8/80 RULE IS A WORKWEEK EXCEPTION FOR
HOSPITALS AND NURSING HOMES. EMPLOYERS USING THIS RULE PAY OVERTIME FOR WORK OVER 8
HOURS A DAY OR 80 HOURS IN A TWO WEEK PERIOD.
Traits of an independent contractor ✔Correct Answer-SETS OWN HOURS; DETERMINES OWN
SEQUENCE OF WORK; WORKS FOR MULTIPLE ORGANIZATIONS; SELF-EMPLOYED; WORKS BY THE JOB;
EMPLOYS ASSISTANTS.
Who is a statutory NONEmployee? (REDS) ✔Correct Answer-Real estate agents, Direct Sales
Who is a statutory Employee? (DISH) ✔Correct Answer-Agent-driver or commission driver, full time
insurance salesperson, homeworker, or a traveling or city salesperson.
How are statutory ee's treated for tax? ✔Correct Answer-FICA, FUTA - NO FIT -
How are NON statutory ee's treated for tax? ✔Correct Answer-No tax with holding all 1099's
Under common law, what tare the 3 types of control? ✔Correct Answer-Behavioral/Financial/Type
of relationship
What is the amount for 1099? ✔Correct Answer-600
SSNVS ✔Correct Answer-SOCIAL SECURITY NUMBER VERIFICATION SERVICE IS SSA'S SYSTEM THAT
ALLOWS EMPLOYERS TO VERIFY IF AN EMPLOYEE'S NAME AND SSN MATCH SSA'S RECORDS.
Traits of an employee? ✔Correct Answer-Has taxes with held from wages, reimbursed for
expenses, when, where, and how to work
Exempt employees are determined by? ✔Correct Answer-THE EMPLOYEE'S PRIMARY JOB DUTIES
AND WEEKLY SALARY.
Form W9 ✔Correct Answer-A federal form which requests the taxpayer identification number or
social security number
Overnight travel is time worked: ✔Correct Answer-Overnight travel by a nonexempt employee is
time worked during periods that coincide with the employee's regular working hours, on scheduled
work days and non-working days.
What is regular rate of pay? ✔Correct Answer-The total pay divided by the total number of hours
worked. Used to determine OT rate
What is excluded from regular rate of pay? (GMPOP-B) ✔Correct Answer-Gifts, MG bonus, PTO, OT
premium, premium pay, discretionary bonus,
IRS misclassification penalties: ✔Correct Answer-THE IRS CAN ASSESS PENALTIES OF 1.5% OF
WAGES AND 20% OF THE EMPLOYEE'S SHARE OF SOCIAL SECURITY AND MEDICARE TAXES WHEN A
WORKER IS UNINTENTIONALLY MISCLASSIFIED AS AN INDEPENDENT CONTRACTOR.
Federal Wage and Hour Law ✔Correct Answer-Fair Labor Standards Act
Verified Answers |Latest Version |Already Graded A+
Administrative EE's primary duties? ✔Correct Answer-An administrative exempt employee's
primary duties consist of performing nonmanual or office work directly related to the management
of business operations of the employer or customers.
Nondiscretionary bonus ✔Correct Answer-Nondiscretionary bonus -Nondiscretionary bonus is a
contractual or agreed-upon bonus or incentive. Nondiscretionary bonuses paid to nonexempt EE's
ARE included in the regular rate of pay in the week earned
Workweek ✔Correct Answer-Any fixed, recurring period of 168 consecutive hours (7 days times 24
hours = 168 hours).
What is an IRS lock in letter? ✔Correct Answer-IRS lock in letterIRS letter tells an ER how to with
hold FIT form an EE no mater what was submitted on W-4 Form
When must IRS lock in letter be put in? ✔Correct Answer-IRS lock in letter time45-60 days is when
it must be implemented and usually has the IRS lock in letter time45-60 days is when it must be
implemented and usually has the date in the letter date in the letter
FLSA highly compensated employee: ✔Correct Answer-FLSA highly compensated employee-AN
EXEMPT HIGHLY COMPENSATED EMPLOYEE UNDER THE FLSA IS AN EMPLOYEE WHO MEETS ONE OF
THE DUTIES TESTS FOR EXECUTIVE, ADMINISTRATIVE OR PROFESSIONAL EMPLOYEES AND HAS
ANNUAL COMPENSATION OF $107,432FLSA
Four types of exempt employees: APES ✔Correct Answer-THE FOUR WHITE COLLAR TYPES OF
EXEMPT EMPLOYEES ARE ADMINISTRATIVE, EXECUTIVE, PROFESSIONAL, AND OUTSIDE SALES.
Professional EE's primary duties- ✔Correct Answer-An exempt professional employee is either a
learned or creative professional. Learned professionals work requires advanced knowledge. Creative
professionals work involves invention or talent.
What amount can tipped ee's be paid? ✔Correct Answer-Tipped EE's may be paid NO LESS than
$2.13 per hour.
When must a W4 be completed? ✔Correct Answer-New hires or FIT will be single and no other
adjustments. Others when their tax liabilities increase.
Executive EE's primary duties? ✔Correct Answer-The management of the business, direction 2 or
more full-time ee's, the authority to recommend hiring and firing.
What is the W4-S form? ✔Correct Answer-Its for Sick pay FIT with holding, allows EE's the ability to
request income tax with holding from third-party sick pay.
If no W4-S form is received, how is FIT handled? ✔Correct Answer-No federal income tax with be
withheld.
,What is the W4-P? ✔Correct Answer-Withholding for Pension or annuity payments. If not received
then with hold as single no other adjustments.
When is an amended W4 Implemented? ✔Correct Answer-When EE submits an amended W4 -
must be implemented with the first payroll no later than 30 days after form is submitted.
How can W4 be made invalid? ✔Correct Answer-When there are any alterations, additions or
deletions to the form. Claiming a flat dollar or percentage. Verbally
What does exempt W4 form mean? ✔Correct Answer-EE submits an exempt W4, the EE will have
no FIT with held for remainder of year. The form expires on 2/15 of the year after it was submitted.
What is a W4? ✔Correct Answer-Employees withholding certificate for federal income tax.
What is the minimum weekly salary Exempt Employees? ✔Correct Answer-FLSA - White Collar
Exemptions rules, must be paid a minimum salary of $684 per week. Teachers, lawyers and attorneys
are not required to be paid a salary.
What is the reasonable basis test? ✔Correct Answer-Reasonable basis test allows a worker
classified as an employee under the common law test to be treated as an independent contractor.
When are meal periods time worked? ✔Correct Answer-A meal period that is not at least 30
minutes of uninterrupted time is time worked under the FLSA.
Engaged to be waiting ✔Correct Answer-Time worked because the employer requires the
employee to wait to begin work
IRS misclassification penalties: #2 ✔Correct Answer-THE EMPLOYER IS LIABLE FOR 100% OF FIT
AND 100% OF SOCIAL SECURITY AND MEDICARE (BOTH EMPLOYEE AND EMPLOYER SHARE) WHEN A
WORKER IS INTENTIONALLY MISCLASSIFIED AS AN INDEPENDENT CONTRACTOR.
Federal minimum wage ✔Correct Answer-$7.25
Who uses economic realities factors? ✔Correct Answer-THE DOL USES THE ECONOMIC REALITIES
FACTORS TO DETERMINE IF A WORKER IS AN EMPLOYEE OR AN INDEPENDENT CONTRACTOR UNDER
THE "TO SUFFER OR PERMIT TO WORK" CONCEPT.
E-Verify ✔Correct Answer-Internet-based verification system that allows employers to verify new
hire identity and eligibility to work in the US. Government contractors and ERs in some states are
required to use it.
Form I-9 ✔Correct Answer-Employment Eligibility Verification
Two parts of I9? ✔Correct Answer-Part 1 - filed by employee and Part 2 employers fill out
documents. A=proves identity and authorization. B= Identity only, C=Authorization
How long to keep I9 form? ✔Correct Answer-For at least 3 years from the date of hire or 1 year
from date of termination, whichever is later. - Practice this one!
When to fill out I9? ✔Correct Answer-No later than the day they begin work. The ER portion with
in 3 days of Hire.
, What is the 8/80 rule? ✔Correct Answer-THE FLSA 8/80 RULE IS A WORKWEEK EXCEPTION FOR
HOSPITALS AND NURSING HOMES. EMPLOYERS USING THIS RULE PAY OVERTIME FOR WORK OVER 8
HOURS A DAY OR 80 HOURS IN A TWO WEEK PERIOD.
Traits of an independent contractor ✔Correct Answer-SETS OWN HOURS; DETERMINES OWN
SEQUENCE OF WORK; WORKS FOR MULTIPLE ORGANIZATIONS; SELF-EMPLOYED; WORKS BY THE JOB;
EMPLOYS ASSISTANTS.
Who is a statutory NONEmployee? (REDS) ✔Correct Answer-Real estate agents, Direct Sales
Who is a statutory Employee? (DISH) ✔Correct Answer-Agent-driver or commission driver, full time
insurance salesperson, homeworker, or a traveling or city salesperson.
How are statutory ee's treated for tax? ✔Correct Answer-FICA, FUTA - NO FIT -
How are NON statutory ee's treated for tax? ✔Correct Answer-No tax with holding all 1099's
Under common law, what tare the 3 types of control? ✔Correct Answer-Behavioral/Financial/Type
of relationship
What is the amount for 1099? ✔Correct Answer-600
SSNVS ✔Correct Answer-SOCIAL SECURITY NUMBER VERIFICATION SERVICE IS SSA'S SYSTEM THAT
ALLOWS EMPLOYERS TO VERIFY IF AN EMPLOYEE'S NAME AND SSN MATCH SSA'S RECORDS.
Traits of an employee? ✔Correct Answer-Has taxes with held from wages, reimbursed for
expenses, when, where, and how to work
Exempt employees are determined by? ✔Correct Answer-THE EMPLOYEE'S PRIMARY JOB DUTIES
AND WEEKLY SALARY.
Form W9 ✔Correct Answer-A federal form which requests the taxpayer identification number or
social security number
Overnight travel is time worked: ✔Correct Answer-Overnight travel by a nonexempt employee is
time worked during periods that coincide with the employee's regular working hours, on scheduled
work days and non-working days.
What is regular rate of pay? ✔Correct Answer-The total pay divided by the total number of hours
worked. Used to determine OT rate
What is excluded from regular rate of pay? (GMPOP-B) ✔Correct Answer-Gifts, MG bonus, PTO, OT
premium, premium pay, discretionary bonus,
IRS misclassification penalties: ✔Correct Answer-THE IRS CAN ASSESS PENALTIES OF 1.5% OF
WAGES AND 20% OF THE EMPLOYEE'S SHARE OF SOCIAL SECURITY AND MEDICARE TAXES WHEN A
WORKER IS UNINTENTIONALLY MISCLASSIFIED AS AN INDEPENDENT CONTRACTOR.
Federal Wage and Hour Law ✔Correct Answer-Fair Labor Standards Act
