CPP Certified Payroll
Professional APA
Master Exam Practice
questions and
answers well illustrated.
Form SS-8 CORRECT ANSWER.Determination of Worker Status for Purposes of
Federal Employment Taxes and Income Tax Withholding
Form W-9 CORRECT ANSWER.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 CORRECT ANSWER.Apply for an original Social Security
card Apply for a replacement Social Security card
Change or correct information on your Social Security number record
,Form SS-4 CORRECT ANSWER.Application for Employer Identification Number (EIN)
Accounting equation (Balance Sheet) CORRECT ANSWER.Assets = Liabilities +
Capital
,Assets - Liabilities = (Shareholders' or Owners' Equity)
Asset (Debit or Credit Normal Balance?) CORRECT ANSWER.Debit
Expense (Debit or Credit Normal Balance?) CORRECT ANSWER.Debit
Liability (Debit or Credit Normal Balance?) CORRECT ANSWER.Credit
Capital (Debit or Credit Normal Balance?) CORRECT ANSWER.Credit
Owners Equity (Debit or Credit Normal Balance?) CORRECT ANSWER.Credit
Revenue (Debit or Credit Normal Balance?) CORRECT ANSWER.Credit
Escheat laws CORRECT ANSWER.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) CORRECT ANSWER.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 CORRECT ANSWER.Outside school hours,
and on school days including Fridays, no more than 3 hours.
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 CORRECT ANSWER.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 3individual 3payment 3makes 3during 3calendar 3year 3exceeding
3$600 3CORRECT 3ANSWER .C
3) Qualified 3real 3estate 3agents 3and 3direct 3sellers 3are 3which 3of 3the 3following?
A. Statutory 3Employees
B. Statutory 3Nonemployees
C. Employees
D. Independent 3Contractors 3CORRECT 3ANSWER.B
4) Under 3the 3common 3law 3test, 3the 3IRS 3examiners 3are 3to 3group 3the
3evidence 3they 3gather 3into 3three 3general 3types 3or 3"categories" 3Which
3of 3the 3following 3is 3not 3one 3of 3them?
A. Behavioral 3control
B. Financial 3control
C. Location 3of 3work
D. Relationship 3of 3the 3parties 3CORRECT 3ANSWER.C
5) Which 3of 3the 3following 3is 3not 3regulated 3by 3the 3FLSA?
A. Child 3labor
B. Overtime 3pay
C. Minimum 3Wage 3Rates
D. 8 3hour 3work 3day 3CORRECT 3ANSWER.D
6) Agent-drivers, 3commission-drivers 3and 3full-time 3life 3insurance
3salespersons 3are 3which 3of 3the 3following?
A. Statutory 3Employees
B. Statutory 3Nonemployees
C. Employees
D. Independent 3Contractors 3CORRECT 3ANSWER.A
7) There 3are 3three 3parts 3of 3the 3ABC 3test, 3which 3is 3not 3one 3of 3them?
A. Business-unusual 3and/ 3or 3away
B. Risk 3of 3loss
C. Customarily 3independent 3contractor
D. Absence 3of 3control 3CORRECT 3ANSWER.B
8) Under 3the 3federal 3new 3hire 3reporting 3requirement 3how 3many 3days 3does
3an 3employer 3have 3after 3hire 3date?
A. 10 3days
B. 20 3days
C. 30 3days
D. 40 3days 3CORRECT 3ANSWER.B
9) What 3is 3Form 3I-9 3used 3for?
A. Application 3for 3Employer 3Identification 3Number
B. Determination 3of 3Employee 3Work 3Status
Professional APA
Master Exam Practice
questions and
answers well illustrated.
Form SS-8 CORRECT ANSWER.Determination of Worker Status for Purposes of
Federal Employment Taxes and Income Tax Withholding
Form W-9 CORRECT ANSWER.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 CORRECT ANSWER.Apply for an original Social Security
card Apply for a replacement Social Security card
Change or correct information on your Social Security number record
,Form SS-4 CORRECT ANSWER.Application for Employer Identification Number (EIN)
Accounting equation (Balance Sheet) CORRECT ANSWER.Assets = Liabilities +
Capital
,Assets - Liabilities = (Shareholders' or Owners' Equity)
Asset (Debit or Credit Normal Balance?) CORRECT ANSWER.Debit
Expense (Debit or Credit Normal Balance?) CORRECT ANSWER.Debit
Liability (Debit or Credit Normal Balance?) CORRECT ANSWER.Credit
Capital (Debit or Credit Normal Balance?) CORRECT ANSWER.Credit
Owners Equity (Debit or Credit Normal Balance?) CORRECT ANSWER.Credit
Revenue (Debit or Credit Normal Balance?) CORRECT ANSWER.Credit
Escheat laws CORRECT ANSWER.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) CORRECT ANSWER.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 CORRECT ANSWER.Outside school hours,
and on school days including Fridays, no more than 3 hours.
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 CORRECT ANSWER.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 3individual 3payment 3makes 3during 3calendar 3year 3exceeding
3$600 3CORRECT 3ANSWER .C
3) Qualified 3real 3estate 3agents 3and 3direct 3sellers 3are 3which 3of 3the 3following?
A. Statutory 3Employees
B. Statutory 3Nonemployees
C. Employees
D. Independent 3Contractors 3CORRECT 3ANSWER.B
4) Under 3the 3common 3law 3test, 3the 3IRS 3examiners 3are 3to 3group 3the
3evidence 3they 3gather 3into 3three 3general 3types 3or 3"categories" 3Which
3of 3the 3following 3is 3not 3one 3of 3them?
A. Behavioral 3control
B. Financial 3control
C. Location 3of 3work
D. Relationship 3of 3the 3parties 3CORRECT 3ANSWER.C
5) Which 3of 3the 3following 3is 3not 3regulated 3by 3the 3FLSA?
A. Child 3labor
B. Overtime 3pay
C. Minimum 3Wage 3Rates
D. 8 3hour 3work 3day 3CORRECT 3ANSWER.D
6) Agent-drivers, 3commission-drivers 3and 3full-time 3life 3insurance
3salespersons 3are 3which 3of 3the 3following?
A. Statutory 3Employees
B. Statutory 3Nonemployees
C. Employees
D. Independent 3Contractors 3CORRECT 3ANSWER.A
7) There 3are 3three 3parts 3of 3the 3ABC 3test, 3which 3is 3not 3one 3of 3them?
A. Business-unusual 3and/ 3or 3away
B. Risk 3of 3loss
C. Customarily 3independent 3contractor
D. Absence 3of 3control 3CORRECT 3ANSWER.B
8) Under 3the 3federal 3new 3hire 3reporting 3requirement 3how 3many 3days 3does
3an 3employer 3have 3after 3hire 3date?
A. 10 3days
B. 20 3days
C. 30 3days
D. 40 3days 3CORRECT 3ANSWER.B
9) What 3is 3Form 3I-9 3used 3for?
A. Application 3for 3Employer 3Identification 3Number
B. Determination 3of 3Employee 3Work 3Status
