THE PAYROLL SOURCE CPP FINAL EXAM AND
PRACTICE EXAM2024/2025 NEWEST !! ACTUAL
COMPLETE 300 REAL EXAM QUESTIONS AND
CORRECT DETAILED ANSWERS /ALREADY
GRADED A+.
At least how often must ERs report noncash fringe benefits as
income for federal tax withholding purposes?
a. each pay
period
b.
monthly
c.
quarterly
d. annually - ANSWER
-d. annually
Which of the following features is LEAST likely to be considered
when looking at the security of a new payroll
system?
a. regular data back-up
and storage
,b. protection against
computer viruses
c. limited system
access
d. system edits - ANSWER -
d. system edits
Company deadlines for payroll data input
documents are essential for:
a. timely processing
of the payroll
b. accurate
entry of data
c. guaranteeing that all
information is processed
d. adequate auditing purposes - ANSWER -a.
timely processing of the payroll
The BEST reason for tracking pay-related problem
statistics is to enable Payroll to: a. identify root
causes and take actions to prevent similar
recurrences
b. apologize to clients in a more professional manner
c. direct problems to those who caused the problem
,d. justify more resources to handle more problems - ANSWER -a.
identify root causes and take actions to prevent similar
recurrences
With regard to EEs' reported tips, the ER must:
a. withhold and pay only the EEs' portion of FICA taxes on tips
b. report tax on tips separately when making an employment tax
deposit
c. report tips as wages on Form W-2 and pay the ER portion of FICA
taxes
d. report and pay the ER portion of FICA taxes on the portion of
cash tips above the federal minimum wage - ANSWER -c. report
tips as wages on Form W-2 and pay the ER portion of FICA taxes
Transactions are recorded in chronological order
into books of original entry called: a. registers
b. vouchers
c. invoices
d. journals - ANSWER -d. journals
Which of the following elements is essential
to a disaster recovery plan? a. an excess
supply of checks and direct deposit stubs
b. a compatible off-site remote location to produce payrolls
c. detailed documentation of current company policies
d. a procedure for limiting security system access - ANSWER -a. a
compatible off-site remote location to produce payrolls
, Which of the following practices is a strong
internal control procedure? a. Have the
payroll bank account reconciled in the
payroll dept.
b. Have the payroll manager distribute paychecks.
c. Place payroll checks under the personal control of the payroll
manager.
d. Have a person other than the person who requested and
authorized the payments prepare the payroll checks. - ANSWER -
d. Have a person other than the person who requested and
authorized the payments prepare the payroll checks.
During 2017, an EE worked for company A and quit after earning
$130,000. Later in the same year, the EE was
hired by company B. With respect to social security, Medicare, and
FUTA, how should company B treat the EE's
earnings as of the first
wage payment?
a. Start accumulating social security, Medicare, and FUTA
wages, and withhold both social security and
Medicare
taxes.
b. Start accumulating Medicare wages only,
and withhold only Medicare tax.
PRACTICE EXAM2024/2025 NEWEST !! ACTUAL
COMPLETE 300 REAL EXAM QUESTIONS AND
CORRECT DETAILED ANSWERS /ALREADY
GRADED A+.
At least how often must ERs report noncash fringe benefits as
income for federal tax withholding purposes?
a. each pay
period
b.
monthly
c.
quarterly
d. annually - ANSWER
-d. annually
Which of the following features is LEAST likely to be considered
when looking at the security of a new payroll
system?
a. regular data back-up
and storage
,b. protection against
computer viruses
c. limited system
access
d. system edits - ANSWER -
d. system edits
Company deadlines for payroll data input
documents are essential for:
a. timely processing
of the payroll
b. accurate
entry of data
c. guaranteeing that all
information is processed
d. adequate auditing purposes - ANSWER -a.
timely processing of the payroll
The BEST reason for tracking pay-related problem
statistics is to enable Payroll to: a. identify root
causes and take actions to prevent similar
recurrences
b. apologize to clients in a more professional manner
c. direct problems to those who caused the problem
,d. justify more resources to handle more problems - ANSWER -a.
identify root causes and take actions to prevent similar
recurrences
With regard to EEs' reported tips, the ER must:
a. withhold and pay only the EEs' portion of FICA taxes on tips
b. report tax on tips separately when making an employment tax
deposit
c. report tips as wages on Form W-2 and pay the ER portion of FICA
taxes
d. report and pay the ER portion of FICA taxes on the portion of
cash tips above the federal minimum wage - ANSWER -c. report
tips as wages on Form W-2 and pay the ER portion of FICA taxes
Transactions are recorded in chronological order
into books of original entry called: a. registers
b. vouchers
c. invoices
d. journals - ANSWER -d. journals
Which of the following elements is essential
to a disaster recovery plan? a. an excess
supply of checks and direct deposit stubs
b. a compatible off-site remote location to produce payrolls
c. detailed documentation of current company policies
d. a procedure for limiting security system access - ANSWER -a. a
compatible off-site remote location to produce payrolls
, Which of the following practices is a strong
internal control procedure? a. Have the
payroll bank account reconciled in the
payroll dept.
b. Have the payroll manager distribute paychecks.
c. Place payroll checks under the personal control of the payroll
manager.
d. Have a person other than the person who requested and
authorized the payments prepare the payroll checks. - ANSWER -
d. Have a person other than the person who requested and
authorized the payments prepare the payroll checks.
During 2017, an EE worked for company A and quit after earning
$130,000. Later in the same year, the EE was
hired by company B. With respect to social security, Medicare, and
FUTA, how should company B treat the EE's
earnings as of the first
wage payment?
a. Start accumulating social security, Medicare, and FUTA
wages, and withhold both social security and
Medicare
taxes.
b. Start accumulating Medicare wages only,
and withhold only Medicare tax.
