CPP CERTIFICATION PRACTICE SOLUTION
COMPLETE QANDA STUDY REVIEW PACK
●● 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 24% effective
January 1, 2018.Under Code § 3406, payors are required to deduct
backup withholding on certain non-wage payments made to payees for
COMPLETE QANDA STUDY REVIEW PACK
●● 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 24% effective
January 1, 2018.Under Code § 3406, payors are required to deduct
backup withholding on certain non-wage payments made to payees for
