CPP Certified Payroll Professional APA
Master Exam Practice 2024
Form SS-8 ANS: Determination of Worker Status for Purposes of Federal Employment Taxes and Income
Tax Withholding
Form W-9 ANS: 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 ANS: 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 ANS: Application for Employer Identification Number (EIN)
Accounting equation (Balance Sheet) ANS: Assets = Liabilities + Capital
Assets - Liabilities = (Shareholders' or Owners' Equity)
,Asset (Debit or Credit Normal Balance?) ANS: Debit
Expense (Debit or Credit Normal Balance?) ANS: Debit
Liability (Debit or Credit Normal Balance?) ANS: Credit
Capital (Debit or Credit Normal Balance?) ANS: Credit
Owners Equity (Debit or Credit Normal Balance?) ANS: Credit
Revenue (Debit or Credit Normal Balance?) ANS: Credit
Escheat laws ANS: 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) ANS: 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 ANS: 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 ANS: 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 individual payment makes during calendar year exceeding $600 ANS: C
3) Qualified real estate agents and direct sellers are which of the following?
A. Statutory Employees
B. Statutory Nonemployees
C. Employees
D. Independent Contractors ANS: B
4) Under the common law test, the IRS examiners are to group the evidence they gather into three
general types or "categories" Which of the following is not one of them?
A. Behavioral control
B. Financial control
C. Location of work
D. Relationship of the parties ANS: C
, 5) Which of the following is not regulated by the FLSA?
A. Child labor
B. Overtime pay
C. Minimum Wage Rates
D. 8 hour work day ANS: D
6) Agent-drivers, commission-drivers and full-time life insurance salespersons are which of the
following?
A. Statutory Employees
B. Statutory Nonemployees
C. Employees
D. Independent Contractors ANS: A
7) There are three parts of the ABC test, which is not one of them?
A. Business-unusual and/ or away
B. Risk of loss
C. Customarily independent contractor
D. Absence of control ANS: B
8) Under the federal new hire reporting requirement how many days does an employer have after hire
date?
A. 10 days
B. 20 days
C. 30 days
D. 40 days ANS: B
Master Exam Practice 2024
Form SS-8 ANS: Determination of Worker Status for Purposes of Federal Employment Taxes and Income
Tax Withholding
Form W-9 ANS: 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 ANS: 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 ANS: Application for Employer Identification Number (EIN)
Accounting equation (Balance Sheet) ANS: Assets = Liabilities + Capital
Assets - Liabilities = (Shareholders' or Owners' Equity)
,Asset (Debit or Credit Normal Balance?) ANS: Debit
Expense (Debit or Credit Normal Balance?) ANS: Debit
Liability (Debit or Credit Normal Balance?) ANS: Credit
Capital (Debit or Credit Normal Balance?) ANS: Credit
Owners Equity (Debit or Credit Normal Balance?) ANS: Credit
Revenue (Debit or Credit Normal Balance?) ANS: Credit
Escheat laws ANS: 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) ANS: 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 ANS: 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 ANS: 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 individual payment makes during calendar year exceeding $600 ANS: C
3) Qualified real estate agents and direct sellers are which of the following?
A. Statutory Employees
B. Statutory Nonemployees
C. Employees
D. Independent Contractors ANS: B
4) Under the common law test, the IRS examiners are to group the evidence they gather into three
general types or "categories" Which of the following is not one of them?
A. Behavioral control
B. Financial control
C. Location of work
D. Relationship of the parties ANS: C
, 5) Which of the following is not regulated by the FLSA?
A. Child labor
B. Overtime pay
C. Minimum Wage Rates
D. 8 hour work day ANS: D
6) Agent-drivers, commission-drivers and full-time life insurance salespersons are which of the
following?
A. Statutory Employees
B. Statutory Nonemployees
C. Employees
D. Independent Contractors ANS: A
7) There are three parts of the ABC test, which is not one of them?
A. Business-unusual and/ or away
B. Risk of loss
C. Customarily independent contractor
D. Absence of control ANS: B
8) Under the federal new hire reporting requirement how many days does an employer have after hire
date?
A. 10 days
B. 20 days
C. 30 days
D. 40 days ANS: B
