CPP Exam Questions and Answers All Correct

CPP Exam Questions and Answers All Correct Form 941 - Line 1 - ANSWER Number of Employees - Complete this line for each quarter. Only include the number of employees who were paid during the pay period in each quarter that contains March 12 (Q1), June 12 (Q2), September 12 (Q3), or December 12 (Q4). Do not include household employees, those employees not receiving pay, pensioners, or active members of the Armed Forces. Form 941 - Line 2 - ANSWER Wages, Tips, and Other Compensation - Enter the total wages paid, tips reported to the employer, taxable fringe benefits provided, and other compensation paid to employees that is subject to federal income tax (enter amounts included in Box 1 of your employees' Form W-2). Taxable amounts are reported even if federal income tax withholding is not required; for example, group-term life insurance. Pensions from qualified plans, annuities, supplemental unemployment benefits, and gambling winnings are not included even if withholding is required from the payments. Elective deferrals, such as contributions to qualified deferred compensation plans or Section 125 plans, are not included, since they are not wages paid. Form 941 - Line 3 - ANSWER Total Income Tax Withheld from Wages and Tips - Enter the federal income tax withheld from the quarter's wages, tips, taxable fringe benefits, and supplemental unemployment compensation benefits. The amount withheld from third-party sick pay provided to the employer's employees is not included in the employer's reported federal income tax withheld. Form 941 - Line 4 - ANSWER If No Wages, Tips and Other Compensation on Line 2 Are Subject to Social Security or Medicare Tax. - If no wages, tips, and compensation reported on Line 2 are subject to social security and Medicare taxes, check this box and go to Line 6. If this box does not apply to you, leave the box blank. Form 941 - Line 5a, Column 1 - ANSWER Taxable Social Security Wages Form 941 - Line 5a, Column 2 - ANSWER Multiply the wages in Line 5a, Column 1 by 12.4% and place this amount in the box. The calculation determines the employees' (6.2%) and employer's (6.2%) social security tax. Do not use the amount of tax withheld to calculate wages. When the employer is not able to withhold the tax on group-term life insurance provided to terminated employees, an adjustment for the tax not withheld is required on Line 9. Form 941 - Line 5b, Column 1 - ANSWER Social Security Tips Form 941 - Line 5b, Column 2 - ANSWER Multiply the tips in Line 5b, Column 1 by 12.4% and place this amount in the box. This calculation determines the employees' (6.2%) and employer's (6.2%) social security tax on reported tips. Do not use the amount of tax withheld to calculate tips. When the employer is not able to withhold the tax on tips, an adjustment for the tax not withheld is required on Line 9