Certified Payroll Professional Exam (CPP) Part 1 Questions with Answers 100% Solved and Updated

Certified Payroll Professional Exam
(CPP) Part 1 Questions with Answers
100% Solved and Updated
PayrollMConceptMWorkersMStatusM-
MAnswerMFormMSS8MisMtheMIRSMdeterminationMofMEEMorMICMstatus.MReasonalMBasisMT
estMakaMSafeMHarborMRulesMSecM530-
AllsMeeMtoMbeMtreatedMlikeMaMICMforMspecificMreasonsMsuchMasMaMcourtMorder,MIRSM
auditMresults,MAttorneyMorMCPAMadvisement,MorMlongMstandingMindustryMstandardMforMt
hatMjobMrole.MCommonMLawMTest-
MseeMchartMforMexampleMEEMisMrequiredMtoMcomplyMwithMERMinstructionsMaboutMwhe
nMwhereMandMhowMtoMwork.MICMsetsMownMhoursMdeterminesMownMsequenceMofMwor
k.MFormMW9MrequestMfromMERMonMICMtoMsupplyMFEINMorMSSNMwithMCompanyMName
.MBackupMWithholding-
MSomeMICMareMrequiredMtoMwithholdM24%MofMearningsMthisMisMreportedMonMFormM9
45.MStatutoryMees-
MnotMeesMunderMtheMcommonMlawMtestMbutMareMtreatedMlikeMeesMforMtaxMpurposes.
MEx.MAgentMorMcommissionMdrivers,MFullMtimeMlifeMinsuranceMsalesMpeople,MhomeMwor
kers,MandMtravelingMsalespersons.MStatutoryMNon-EEs-
MQualifyMasMeesMnderMcommonMlawMtest,MbutMtheyMareMtreatedMasMIC.MNoMtaxesM
w/hMfromMpay.MEx:MRealMEstateMagents,MdirectMsellers.MIncomeMmustMbeMdirectlyMrela
tedMtoMsales,MIncomeMreportedMonM1099MBoxM7MNon-EEMcomp.



FLSAM-MAnswerMFLSAM-
MSetsMmin.Mwage.requiresMrecordMkeeping,MplacesMrestrictionsMonMtypesMofMworkMmino
rsMcanMdo.MItMDOESMNOTMgovernMvacation,Msick,MjuryMduty,Mholiday,MlunchMbreaks.MF
reqMofMpayMorMrestrictionsMonMhoursMrequiredMtoMwork.MThisMareaMisMhandledMbyMs
tateMlaw.MFederalMMinMWageM=M7.25Mhour.MOTMHOURS--
MeverythingMoverM40MhoursMinMtheMworkMweek.MExemptMeesMmustMbeMpaidMatMleast
M$455MaMweekMsalaryMorMfeeMbasis.MPrimaryMdutiesMmustMconsistMofMperformingMnon
MmanualMorMofficeMworkMrelatedMtoMtheMgeneralMbusinessMoperations.MORMPermitingM
workMthatMisMdirectlyMrelatedMtoMacademicMinstruction.MTips-
M2.13/HRMhourlyMrateMandMtipsMmustMmeetMminMwageMrequirementMinMfed/state.MMu
stMalsoMreceiveM$30MinMtipsMperMmonth.MTIPMCREDIT-
M5.12MallowedMcreditMbyMtheMemployerMwhenMtipsMareMatMleastM5.12/hr.MREGMRATE
MOFMPAY-
McalculationMisMRegMrateMofMpay=totalMregMpayMdividedMbyM#MofMhoursMworked.MFlu
ctuatingMWorkMWeek-
MChangeMofMscheduleMbasedMonMbusinessMneed.MokMasMlongMasMeesMareMpaidMforM
OT.MFixedMwklyMsalaryMisMhighMenoughMthatMtheyMdontMfallMbelowMminMwage.MComp
MTimeMPrivateMSector-
MAllowedMasMlongMasMtheMtimeMoffMisMinMtheMsameMpayMperiod.M11/2MhoursMgiven
MforMeverMhourMofMOTMworked.MStateMand/orMGovMworkersMcanMhaveMtheMcompMti
meMratherMthanMOTMpayMif;MtheMEEMagreeesMtoMit,MeesMareMgivenMreasonableMtime
MtoMuseMit,MCanMaccumulateM240MhoursMofMcompMtimeMORM160MhoursMofMOT.MAbo

, veMmustMbeMpaid.MAsMforMpublicMsafetyMees,MtheyMcanMhaveMaMmaxMcompMtimeMof
M480MandM320MOTMhrsMcomp.MCHANGINGMWORKMWEEK-
MIsMwhnMtheMworkweekMchangesMfromMM-SUNMtoMSUN-
SAT.MOTMisMpaidMonMtheMgreaterMofMtheM2.MWHITEMCOLLARMare:Madministrative,Mexe
cutives,Mprofessionals,MlearnedMprofessionals,McreativeMprofessionals,McomputerMprofession
als,MoutsideMsales.MWORKMWEEK-
MdeterminesMtheM7MconsecutiveM24MhourMperiodMandMwhenMOTMisMcalculated.MCOMP
ENSABLEMTIME-MNonMEx.MeesMmustMbe



EmployementMTaxesM-
MAnswerMExamsMadministeredMfromMSeptemberM15,M2018MthroughMSeptemberM13,M201
9,MfeatureMquestionsMbasedMonMfederalMlawsMandMregulationsMinMeffectMasMofMJanuary
M1,M2018.MFITMallMemployeesMareMsubjectMtoMFIT.MERMareMresponsibleMtoMpay.MTaxab
leMwagesMisMallMcomp.MnotMspecificallyMexcludedMfromMtaxableMincome.MFringeMbenefit
sMareMusualyMtaxable.MSEEMWAGEMBRACKETMMETHODMandMPERCENTAGEMMETHODMtabl
es.MSeeMSUPPLEMENTALMTAXMMethodsMwageMbracketMandMaggregate.MFUTAMWAGEMBA
SE.MEEsMonlyMareMsubjectMtoMFUTA.MRateMisM6%MbutMcreditMisM5.4%MleavingMtheMta
xMatM.6%MpayMonMtheMfirstM7,000MinMtaxableMwages.MExclusionsMtoMFUTAMareMsickM
orMdisabiltyMpaidMmoreMthanM6MmonthsMafterMtheMlastMmonthMofMemploy.MWorkersM
compMpay,MpaymentsMtoMCafeM124Mplan,MnonMcashMpayments,MqualifiedMmovingMexpe
nses,MdealthMorMdisabilyMpayments,MeduMreimb.,MGTL,MmealsMandMlodging,MwagesMpaid
MafterMdeath,MtipsMnotMreportedMtoMER.MSSMWageMbaseMisM128,400MandMisM6.2%Mof
Mearnings.MERMpayMmatch.MMEDICARE-
ThereMisMnoMlimitMonMtheMamountMofMwagesMsubjectMtoMtheMotherMportionMofMthe
MFICAMtax,MtheM1.45%MMedicareMtaxMadditionalM.9%MmustMbeMw/hMfromMtheMeeMfor
MtaxableMearningsMoverM200,000.MERMdoesMnotMmatch.MBackupMwithholdingMrequiremen
ts-
MBackupMWithholdingMRateMDropsMinM2018.MAsMaMresultMofMtheMrecentlyMpassedMtax
MreformMbill,MtheMTaxMCutsMandMJobsMAct,MtheMbackupMwithholdingMrateMwillMbeMre
ducedMfromM28%MtoM24%MeffectiveMJanuaryM1,M2018.UnderMCodeM§M3406,MpayorsMar
eMrequiredMtoMdeductMbackupMwithholdingMonMcertainMnon-
wageMpaymentsMmadeMtoMpayeesMforMwhomManMinformationMreturnMwasMfiledMwithM
eitherMaMmissingMorMincorrectMTIN.MTheMbackupMwithholdingMrateMunderM§3406(a)(1)Mi
sMtheMfourthMlowestMrateMofMtaxMunderM§1(c),MtaxMratesMforMsingleMindividuals.MThe
MRailroadMRetirementMSystemMRailroadMemploymentMtaxesMconsistMofMemployerMandMe
mployeeMtaxes.MTheMemployerMandMemployeesMpayMcer



EEMBenefitsM-MAnswerMTaxableMbenefits-
MsubjectMtoMFITMandMallMotherMempMtaxes.MSuchMasMbonuses,Mcommissions,Mpersonal
MuseMofMcompanyMvehicle,MseveranceMpay,MERMpaidMparkingMgreaterMthanM$245/mo.,M
ERMpaidMcommuterMfeesMinMexcessMofM$245/mo.,MGTLMoverM50,000MandMTips.MNonMT
axableMbenefitsMareMcompanyMvehicleMusedMforMbusinessMuseMonly,MGTLMunderM50,000
,MMed,MDentalMandMhealthMplans,MQualifiedMmovingMexpenses.MQualifiedMPlans-
MareMretirementMplans,Mawards.MQualifiedMTransportion-
MexcludableMfromMincomeMifMtheMvehicleMisMprovidedMbyMER.MTransitMpassesMreimb.M
byMER,MParkingMonMorMnearMworkMpremises.MQualifiedMMovingMexpenses-