CPP CERTIFIED PAYROLL
PROFESSIONAL APA MASTER EXAM
PRACTICE QUESTIONS AND ANSWERS
100% PASS
Form SS-8 - ANS Determination of Worker Status for Purposes of Federal Employment Taxes
and Income Tax Withholding
Form W-9 - ANS First, it is used by third parties to collect identifying information to help file
information returns with the IRS.
The form is never actually sent to the IRS, but is maintained by the person who files the
information return for verification purposes.
The information on the Form W-9 and the payment made are reported on a Form 1099.
The second purpose is to help the payee avoid backup withholding. The payer must collect
withholding taxes on certain reportable payments for the IRS. However, if the payee certifies on
the W-9 they are not subject to backup withholding they generally receive the full payment due
them from the payer. This is similar to the withholding exemptions certifications found on Form
W-4 for employees.
Form SS-5 - ANS Apply for an original Social Security card
Apply for a replacement Social Security card
Change or correct information on your Social Security number record
@COPYRIGHT ALL RIGHTS RESERVED PAGE 1 OF 89
,Form SS-4 - ANS Application for Employer Identification Number (EIN)
Accounting equation (Balance Sheet) - ANS Assets = Liabilities + Capital
Assets - Liabilities = (Shareholders' or Owners' Equity)
Asset (Debit or Credit Normal Balance?) - ANS Debit
Expense (Debit or Credit Normal Balance?) - ANS Debit
Liability (Debit or Credit Normal Balance?) - ANS Credit
Capital (Debit or Credit Normal Balance?) - ANS Credit
Owners Equity (Debit or Credit Normal Balance?) - ANS Credit
Revenue (Debit or Credit Normal Balance?) - ANS Credit
Escheat laws - ANS Refer to unclaimed property obligations. Companies who issue checks-for
wages, payroll, employee commissions, returnable garnishments, deferred compensation,
payroll services or bonuseshave a potential (and probable) unclaimed property obligation.
Schedule D (Form 941) - ANS to explain certain discrepancies (caused by acquisitions,
statutory mergers, and consolidations) between Forms W-2, Wage and Tax Statement (Copy A),
and Forms 941, Employer's QUARTERLY Federal Tax Return, for the totals of social security
wages, Medicare wages and tips, social security tips, federal income tax withheld, and advance
earned income credit (EIC) payments
Workweek for 14 and 15-year-olds - ANS Outside school hours, and on school days including
Fridays, no more than 3 hours.
@COPYRIGHT ALL RIGHTS RESERVED PAGE 2 OF 89
,No more than 8 hours on a non-school day.
When school is in session, no more than 18 hours per week.
No more than 40 hours during a week when school is out.
Between the hours of 7 a.m. And 7 p.m, extended to 9 p.m. Between June 1 and Labor Day.
1) Which form is used for Determination of Employee Work Status for Purposes of Federal
Employment Taxes and Income Tax Withholding?
A. Form I-9
B. Form SS-4
C. Form SS-5
D. Form SS-8 - ANS D
2) What amount must an independent contractor be paid for services rendered before an
employer is obligated to give them a 1099-MISC?
A. Once total reaches $600 or more
B. Total payments reach $600 or more for company's fiscal year
C. Total payments reach $600 or more for calendar year
D. Any individual payment makes during calendar year exceeding $600 - ANS C
3) Qualified real estate agents and direct sellers are which of the following?
A. Statutory Employees
B. Statutory Nonemployees
C. Employees
D. Independent Contractors - ANS B
4) Under the common law test, the IRS examiners are to group the evidence they gather into
three general types or "categories" Which of the following is not one of them?
A. Behavioral control
B. Financial control
@COPYRIGHT ALL RIGHTS RESERVED PAGE 3 OF 89
, C. Location of work
D. Relationship of the parties - ANS C
5) Which of the following is not regulated by the FLSA?
A. Child labor
B. Overtime pay
C. Minimum Wage Rates
D. 8 hour work day - ANS D
6) Agent-drivers, commission-drivers and full-time life insurance salespersons are which of the
following?
A. Statutory Employees
B. Statutory Nonemployees
C. Employees
D. Independent Contractors - ANS A
7) There are three parts of the ABC test, which is not one of them?
A. Business-unusual and/ or away
B. Risk of loss
C. Customarily independent contractor
D. Absence of control - ANS B
8) Under the federal new hire reporting requirement how many days does an employer have
after hire date?
A. 10 days
B. 20 days
C. 30 days
D. 40 days - ANS B
@COPYRIGHT ALL RIGHTS RESERVED PAGE 4 OF 89
PROFESSIONAL APA MASTER EXAM
PRACTICE QUESTIONS AND ANSWERS
100% PASS
Form SS-8 - ANS Determination of Worker Status for Purposes of Federal Employment Taxes
and Income Tax Withholding
Form W-9 - ANS First, it is used by third parties to collect identifying information to help file
information returns with the IRS.
The form is never actually sent to the IRS, but is maintained by the person who files the
information return for verification purposes.
The information on the Form W-9 and the payment made are reported on a Form 1099.
The second purpose is to help the payee avoid backup withholding. The payer must collect
withholding taxes on certain reportable payments for the IRS. However, if the payee certifies on
the W-9 they are not subject to backup withholding they generally receive the full payment due
them from the payer. This is similar to the withholding exemptions certifications found on Form
W-4 for employees.
Form SS-5 - ANS Apply for an original Social Security card
Apply for a replacement Social Security card
Change or correct information on your Social Security number record
@COPYRIGHT ALL RIGHTS RESERVED PAGE 1 OF 89
,Form SS-4 - ANS Application for Employer Identification Number (EIN)
Accounting equation (Balance Sheet) - ANS Assets = Liabilities + Capital
Assets - Liabilities = (Shareholders' or Owners' Equity)
Asset (Debit or Credit Normal Balance?) - ANS Debit
Expense (Debit or Credit Normal Balance?) - ANS Debit
Liability (Debit or Credit Normal Balance?) - ANS Credit
Capital (Debit or Credit Normal Balance?) - ANS Credit
Owners Equity (Debit or Credit Normal Balance?) - ANS Credit
Revenue (Debit or Credit Normal Balance?) - ANS Credit
Escheat laws - ANS Refer to unclaimed property obligations. Companies who issue checks-for
wages, payroll, employee commissions, returnable garnishments, deferred compensation,
payroll services or bonuseshave a potential (and probable) unclaimed property obligation.
Schedule D (Form 941) - ANS to explain certain discrepancies (caused by acquisitions,
statutory mergers, and consolidations) between Forms W-2, Wage and Tax Statement (Copy A),
and Forms 941, Employer's QUARTERLY Federal Tax Return, for the totals of social security
wages, Medicare wages and tips, social security tips, federal income tax withheld, and advance
earned income credit (EIC) payments
Workweek for 14 and 15-year-olds - ANS Outside school hours, and on school days including
Fridays, no more than 3 hours.
@COPYRIGHT ALL RIGHTS RESERVED PAGE 2 OF 89
,No more than 8 hours on a non-school day.
When school is in session, no more than 18 hours per week.
No more than 40 hours during a week when school is out.
Between the hours of 7 a.m. And 7 p.m, extended to 9 p.m. Between June 1 and Labor Day.
1) Which form is used for Determination of Employee Work Status for Purposes of Federal
Employment Taxes and Income Tax Withholding?
A. Form I-9
B. Form SS-4
C. Form SS-5
D. Form SS-8 - ANS D
2) What amount must an independent contractor be paid for services rendered before an
employer is obligated to give them a 1099-MISC?
A. Once total reaches $600 or more
B. Total payments reach $600 or more for company's fiscal year
C. Total payments reach $600 or more for calendar year
D. Any individual payment makes during calendar year exceeding $600 - ANS C
3) Qualified real estate agents and direct sellers are which of the following?
A. Statutory Employees
B. Statutory Nonemployees
C. Employees
D. Independent Contractors - ANS B
4) Under the common law test, the IRS examiners are to group the evidence they gather into
three general types or "categories" Which of the following is not one of them?
A. Behavioral control
B. Financial control
@COPYRIGHT ALL RIGHTS RESERVED PAGE 3 OF 89
, C. Location of work
D. Relationship of the parties - ANS C
5) Which of the following is not regulated by the FLSA?
A. Child labor
B. Overtime pay
C. Minimum Wage Rates
D. 8 hour work day - ANS D
6) Agent-drivers, commission-drivers and full-time life insurance salespersons are which of the
following?
A. Statutory Employees
B. Statutory Nonemployees
C. Employees
D. Independent Contractors - ANS A
7) There are three parts of the ABC test, which is not one of them?
A. Business-unusual and/ or away
B. Risk of loss
C. Customarily independent contractor
D. Absence of control - ANS B
8) Under the federal new hire reporting requirement how many days does an employer have
after hire date?
A. 10 days
B. 20 days
C. 30 days
D. 40 days - ANS B
@COPYRIGHT ALL RIGHTS RESERVED PAGE 4 OF 89
