CPP CERTIFIED PAYROLL PROFESSIONAL EXAM ACTUAL EXAM
400 QUESTIONS AND CORRECT DETAILED ANSWERS (VERIFIED
ANSWERS)
When calculating an employee's net pay, all of the following amounts are subtracted
from gross earnings except: - ANSWER: Taxable Wages
The minimum salary requirement does not apply to exempt professional employees
who are: - ANSWER: Teachers working in an educational institution
What is the daily housing amount for the foreign housing cost exclusion for 2023? -
ANSWER: 52.60
Under a Sec. 125 plan, all of the following benefits are qualified benefits EXCEPT: -
ANSWER: Deferred compensation to a 457(b) plan
When correcting Form 941, Line 2, Wages, tips, and other compensation, file Form: -
ANSWER: 941-X
An employee who is supporting another family has $600.00 semimonthly disposable
earnings. The employee's child support payments are $580.00 semimonthly and
more than 12 weeks in arrears. Under the CCPA, calculate the maximum amount
that can be deducted from the employee's pay for child support. - ANSWER: $330.00
The maximum holding period for §401(k) plan contributions is: - ANSWER: The 15th
business day of the following month the deferral occurred
If an employee's net pay results in negative net pay, which of the following
deductions can be reduced or eliminated to bring the check to $0? - ANSWER:
Voluntary deductions
Which of the following workers is an independent contractor? - ANSWER: A
commercial artist furnishing her own tools and equipment
What determines the tax liability in the event of an off-cycle check? - ANSWER:
When the employee receives the check
Under the FLSA white-collar exemption rules, an exempt outside sales employee will
meet all of the following requirements EXCEPT: - ANSWER: Being paid a salary of at
least $684.00 a week
Contributions to Health Savings Accounts may be made by: - ANSWER: Employer
and employee
, Which of the following payroll issues are governed only by the states? - ANSWER:
Unclaimed wages
Which form is used by a local government employer when withholding only
Medicare tax? - ANSWER: Form 941
Due to poor accounting procedures and negligence, a company underdeposited its
2023 payroll tax liability by $11,000.00. The error was corrected within five days of
the due date. The company's total federal income, social security, and Medicare tax
liability was $150,000.00. The company may be subject to: - ANSWER: Penalties for
late deposit
The first step taken when giving employees the latitude to develop their own
methods for achieving results is to: - ANSWER: Establish the desired results
Reflective listening is: - ANSWER: Restating what you understand from the other's
statements
An experienced systems analyst is having difficulty instituting state-mandated
changes in handling child support payments. Although working overtime, he
struggles with the legal requirements and the program is not operational. What style
of management is most likely to be effective in handling the employee's
performance gap? - ANSWER: High task, high relationship
An employee earns $920.00 semimonthly. Deductions include $13.00 for federal
income tax, $70.38 for social security and Medicare taxes, and $100.00 for court-
ordered child support payments. Calculate the employee's semimonthly disposable
pay. - ANSWER: $836.62
Disposable earnings are determined by subtracting all deductions required by law
from an employee's gross earnings. Deductions required by law include federal
income, state income, local income, social security and Medicare taxes.
An employee drove a company vehicle 5,000 miles for business and 6,000 miles for
personal use. The car is valued at $64,150.00. Which of the following statements
regarding the employee's use of this vehicle is true? - ANSWER: Employers are
required to report the value of the personal use of the vehicle at least once a year
Which of the following statements is true about 401(k) plans? - ANSWER:
Contributions to a Roth 401(k) plan are subject to federal income tax when
deferred
Which of the following federal taxes, if any, must an employer withhold from an
employee's tips when the amount reported exceeds $20.00 in the month? -
ANSWER: Federal income, social security, and Medicare taxes
400 QUESTIONS AND CORRECT DETAILED ANSWERS (VERIFIED
ANSWERS)
When calculating an employee's net pay, all of the following amounts are subtracted
from gross earnings except: - ANSWER: Taxable Wages
The minimum salary requirement does not apply to exempt professional employees
who are: - ANSWER: Teachers working in an educational institution
What is the daily housing amount for the foreign housing cost exclusion for 2023? -
ANSWER: 52.60
Under a Sec. 125 plan, all of the following benefits are qualified benefits EXCEPT: -
ANSWER: Deferred compensation to a 457(b) plan
When correcting Form 941, Line 2, Wages, tips, and other compensation, file Form: -
ANSWER: 941-X
An employee who is supporting another family has $600.00 semimonthly disposable
earnings. The employee's child support payments are $580.00 semimonthly and
more than 12 weeks in arrears. Under the CCPA, calculate the maximum amount
that can be deducted from the employee's pay for child support. - ANSWER: $330.00
The maximum holding period for §401(k) plan contributions is: - ANSWER: The 15th
business day of the following month the deferral occurred
If an employee's net pay results in negative net pay, which of the following
deductions can be reduced or eliminated to bring the check to $0? - ANSWER:
Voluntary deductions
Which of the following workers is an independent contractor? - ANSWER: A
commercial artist furnishing her own tools and equipment
What determines the tax liability in the event of an off-cycle check? - ANSWER:
When the employee receives the check
Under the FLSA white-collar exemption rules, an exempt outside sales employee will
meet all of the following requirements EXCEPT: - ANSWER: Being paid a salary of at
least $684.00 a week
Contributions to Health Savings Accounts may be made by: - ANSWER: Employer
and employee
, Which of the following payroll issues are governed only by the states? - ANSWER:
Unclaimed wages
Which form is used by a local government employer when withholding only
Medicare tax? - ANSWER: Form 941
Due to poor accounting procedures and negligence, a company underdeposited its
2023 payroll tax liability by $11,000.00. The error was corrected within five days of
the due date. The company's total federal income, social security, and Medicare tax
liability was $150,000.00. The company may be subject to: - ANSWER: Penalties for
late deposit
The first step taken when giving employees the latitude to develop their own
methods for achieving results is to: - ANSWER: Establish the desired results
Reflective listening is: - ANSWER: Restating what you understand from the other's
statements
An experienced systems analyst is having difficulty instituting state-mandated
changes in handling child support payments. Although working overtime, he
struggles with the legal requirements and the program is not operational. What style
of management is most likely to be effective in handling the employee's
performance gap? - ANSWER: High task, high relationship
An employee earns $920.00 semimonthly. Deductions include $13.00 for federal
income tax, $70.38 for social security and Medicare taxes, and $100.00 for court-
ordered child support payments. Calculate the employee's semimonthly disposable
pay. - ANSWER: $836.62
Disposable earnings are determined by subtracting all deductions required by law
from an employee's gross earnings. Deductions required by law include federal
income, state income, local income, social security and Medicare taxes.
An employee drove a company vehicle 5,000 miles for business and 6,000 miles for
personal use. The car is valued at $64,150.00. Which of the following statements
regarding the employee's use of this vehicle is true? - ANSWER: Employers are
required to report the value of the personal use of the vehicle at least once a year
Which of the following statements is true about 401(k) plans? - ANSWER:
Contributions to a Roth 401(k) plan are subject to federal income tax when
deferred
Which of the following federal taxes, if any, must an employer withhold from an
employee's tips when the amount reported exceeds $20.00 in the month? -
ANSWER: Federal income, social security, and Medicare taxes
