CPP FOR 2025 EXAM QUESTIONS
WITH VERIFIED ANSWERS
What is regular rate of pay? - ANSWER-The total pay divided by the total number of
hours worked. Used to determine OT rate
What is excluded from regular rate of pay? (GMPOP-B) - ANSWER-Gifts, MG
bonus, PTO, OT premium, premium pay, discretionary bonus,
IRS misclassification penalties: - ANSWER-THE IRS CAN ASSESS PENALTIES OF
1.5% OF WAGES AND 20% OF THE EMPLOYEE'S SHARE OF SOCIAL
SECURITY AND MEDICARE TAXES WHEN A WORKER IS UNINTENTIONALLY
MISCLASSIFIED AS AN INDEPENDENT CONTRACTOR.
Federal Wage and Hour Law - ANSWER-Fair Labor Standards Act
Who does the FLSA cover? (MOEC) - ANSWER-Min wage, OT, Equal Pay, Child
Labor,
Who is covered by FLSA? - ANSWER-Employees are covered by the FLSA under
either the enterprise coverage test or the individual employee coverage test.
What is SS8 - ANSWER-Filed with IRS to determine workers status.
How much FMLA leave is guaranteed? - ANSWER-Eligible employees 12 weeks of
unpaid leave in a 12 month period
Waiting to be engaged - ANSWER-Free to go about your life until you are called
Typically not paid
Who is an exempt employee? - ANSWER-Exempt from minimum wage and OT.
Must be paid 684 per week. APES
Child labor rules under age 14: - ANSWER-Child labor laws generally prohibit
employment of minors under age 14, unless the minor works for a parent or in some
situations, actors, batboys or girls and ballboys or girls.
Child labor rules under 18 - ANSWER-Restricts minors under age of 18 from working
in job that has been declared hazardous by the dol.
Child labor age 14 and 15 - ANSWER-CHILD LABOR LAWS ALLOW 14 AND 15
YEARS OLDS TO WORK 3 HOURS A DAY AND 18 HOURS A WEEK WHILE
SCHOOL IS IN SESSION AND 8 HOURS A DAY AND 40 HOURS A WEEK WHEN
SCHOOL IS NOT IN SESSION.
Backup Withholding - ANSWER-24% FITW on reportable non-payroll payments
when a TIN is not provided or the organization is notified by the IRS. Reported
annually on Form 945
,Allowable Tip credit - ANSWER-No more than $5.12 per hour
What is compensatory time off? - ANSWER-Under FLSA, public-sector ees engaged
in public safety, emergency response, and seasonal activities may accrue up to 480
hours of comp time. All other public-sector ee's are limited to accruing 240 hours of
comp time.
What fluctuates for EE's paid on fluctuating workweek? - ANSWER-Hours worked
only.
For the white collar exemption rule, administration employees must meet: -
ANSWER-non manual work, exercise discretion on matters of significance, and be
paid weekly salary of 684.
E-verify checks which two systems? - ANSWER-SSA and DHC
W4-S form, can ee use flat dollar? - ANSWER-yes, its only flat dollar
If no W4P is received, how do you with hold? - ANSWER-Single with no other
adjustments in steps 2 through 4.
IRS misclassification penalties: #2 - ANSWER-THE EMPLOYER IS LIABLE FOR
100% OF FIT AND 100% OF SOCIAL SECURITY AND MEDICARE (BOTH
EMPLOYEE AND EMPLOYER SHARE) WHEN A WORKER IS INTENTIONALLY
MISCLASSIFIED AS AN INDEPENDENT CONTRACTOR.
Federal minimum wage - ANSWER-$7.25
Who uses economic realities factors? - ANSWER-THE DOL USES THE ECONOMIC
REALITIES FACTORS TO DETERMINE IF A WORKER IS AN EMPLOYEE OR AN
INDEPENDENT CONTRACTOR UNDER THE "TO SUFFER OR PERMIT TO
WORK" CONCEPT.
E-Verify - ANSWER-Internet-based verification system that allows employers to
verify new hire identity and eligibility to work in the US. Government contractors and
ERs in some states are required to use it.
Form I-9 - ANSWER-Employment Eligibility Verification
Two parts of I9? - ANSWER-Part 1 - filed by employee and Part 2 employers fill out
documents. A=proves identity and authorization. B= Identity only, C=Authorization
How long to keep I9 form? - ANSWER-For at least 3 years from the date of hire or 1
year from date of termination, whichever is later. - Practice this one!
When to fill out I9? - ANSWER-No later than the day they begin work. The ER
portion with in 3 days of Hire.
, What is the 8/80 rule? - ANSWER-THE FLSA 8/80 RULE IS A WORKWEEK
EXCEPTION FOR HOSPITALS AND NURSING HOMES. EMPLOYERS USING
THIS RULE PAY OVERTIME FOR WORK OVER 8 HOURS A DAY OR 80 HOURS
IN A TWO WEEK PERIOD.
Traits of an independent contractor - ANSWER-SETS OWN HOURS; DETERMINES
OWN SEQUENCE OF WORK; WORKS FOR MULTIPLE ORGANIZATIONS; SELF-
EMPLOYED; WORKS BY THE JOB; EMPLOYS ASSISTANTS.
Who is a statutory NONEmployee? (REDS) - ANSWER-Real estate agents, Direct
Sales
Who is a statutory Employee? (DISH) - ANSWER-Agent-driver or commission driver,
full time insurance salesperson, homeworker, or a traveling or city salesperson.
How are statutory ee's treated for tax? - ANSWER-FICA, FUTA - NO FIT -
How are NON statutory ee's treated for tax? - ANSWER-No tax with holding all
1099's
Under common law, what tare the 3 types of control? - ANSWER-
Behavioral/Financial/Type of relationship
What is the amount for 1099? - ANSWER-600
SSNVS - ANSWER-SOCIAL SECURITY NUMBER VERIFICATION SERVICE IS
SSA'S SYSTEM THAT ALLOWS EMPLOYERS TO VERIFY IF AN EMPLOYEE'S
NAME AND SSN MATCH SSA'S RECORDS.
Traits of an employee? - ANSWER-Has taxes with held from wages, reimbursed for
expenses, when, where, and how to work
Exempt employees are determined by? - ANSWER-THE EMPLOYEE'S PRIMARY
JOB DUTIES AND WEEKLY SALARY.
Form W9 - ANSWER-A federal form which requests the taxpayer identification
number or social security number
Overnight travel is time worked: - ANSWER-Overnight travel by a nonexempt
employee is time worked during periods that coincide with the employee's regular
working hours, on scheduled work days and non-working days.
What information, if any, is reported on a statutory employee's Form W-2? -
ANSWER-Wages in Boxes 1, 3, and 5, with the Statutory Employee check box in 13
checked
The minimum salary requirement does not apply to exempt professional employees
who are: - ANSWER-The FLSA minimum salary for exempt employees does not
apply to attorneys, physicians, and teachers.
WITH VERIFIED ANSWERS
What is regular rate of pay? - ANSWER-The total pay divided by the total number of
hours worked. Used to determine OT rate
What is excluded from regular rate of pay? (GMPOP-B) - ANSWER-Gifts, MG
bonus, PTO, OT premium, premium pay, discretionary bonus,
IRS misclassification penalties: - ANSWER-THE IRS CAN ASSESS PENALTIES OF
1.5% OF WAGES AND 20% OF THE EMPLOYEE'S SHARE OF SOCIAL
SECURITY AND MEDICARE TAXES WHEN A WORKER IS UNINTENTIONALLY
MISCLASSIFIED AS AN INDEPENDENT CONTRACTOR.
Federal Wage and Hour Law - ANSWER-Fair Labor Standards Act
Who does the FLSA cover? (MOEC) - ANSWER-Min wage, OT, Equal Pay, Child
Labor,
Who is covered by FLSA? - ANSWER-Employees are covered by the FLSA under
either the enterprise coverage test or the individual employee coverage test.
What is SS8 - ANSWER-Filed with IRS to determine workers status.
How much FMLA leave is guaranteed? - ANSWER-Eligible employees 12 weeks of
unpaid leave in a 12 month period
Waiting to be engaged - ANSWER-Free to go about your life until you are called
Typically not paid
Who is an exempt employee? - ANSWER-Exempt from minimum wage and OT.
Must be paid 684 per week. APES
Child labor rules under age 14: - ANSWER-Child labor laws generally prohibit
employment of minors under age 14, unless the minor works for a parent or in some
situations, actors, batboys or girls and ballboys or girls.
Child labor rules under 18 - ANSWER-Restricts minors under age of 18 from working
in job that has been declared hazardous by the dol.
Child labor age 14 and 15 - ANSWER-CHILD LABOR LAWS ALLOW 14 AND 15
YEARS OLDS TO WORK 3 HOURS A DAY AND 18 HOURS A WEEK WHILE
SCHOOL IS IN SESSION AND 8 HOURS A DAY AND 40 HOURS A WEEK WHEN
SCHOOL IS NOT IN SESSION.
Backup Withholding - ANSWER-24% FITW on reportable non-payroll payments
when a TIN is not provided or the organization is notified by the IRS. Reported
annually on Form 945
,Allowable Tip credit - ANSWER-No more than $5.12 per hour
What is compensatory time off? - ANSWER-Under FLSA, public-sector ees engaged
in public safety, emergency response, and seasonal activities may accrue up to 480
hours of comp time. All other public-sector ee's are limited to accruing 240 hours of
comp time.
What fluctuates for EE's paid on fluctuating workweek? - ANSWER-Hours worked
only.
For the white collar exemption rule, administration employees must meet: -
ANSWER-non manual work, exercise discretion on matters of significance, and be
paid weekly salary of 684.
E-verify checks which two systems? - ANSWER-SSA and DHC
W4-S form, can ee use flat dollar? - ANSWER-yes, its only flat dollar
If no W4P is received, how do you with hold? - ANSWER-Single with no other
adjustments in steps 2 through 4.
IRS misclassification penalties: #2 - ANSWER-THE EMPLOYER IS LIABLE FOR
100% OF FIT AND 100% OF SOCIAL SECURITY AND MEDICARE (BOTH
EMPLOYEE AND EMPLOYER SHARE) WHEN A WORKER IS INTENTIONALLY
MISCLASSIFIED AS AN INDEPENDENT CONTRACTOR.
Federal minimum wage - ANSWER-$7.25
Who uses economic realities factors? - ANSWER-THE DOL USES THE ECONOMIC
REALITIES FACTORS TO DETERMINE IF A WORKER IS AN EMPLOYEE OR AN
INDEPENDENT CONTRACTOR UNDER THE "TO SUFFER OR PERMIT TO
WORK" CONCEPT.
E-Verify - ANSWER-Internet-based verification system that allows employers to
verify new hire identity and eligibility to work in the US. Government contractors and
ERs in some states are required to use it.
Form I-9 - ANSWER-Employment Eligibility Verification
Two parts of I9? - ANSWER-Part 1 - filed by employee and Part 2 employers fill out
documents. A=proves identity and authorization. B= Identity only, C=Authorization
How long to keep I9 form? - ANSWER-For at least 3 years from the date of hire or 1
year from date of termination, whichever is later. - Practice this one!
When to fill out I9? - ANSWER-No later than the day they begin work. The ER
portion with in 3 days of Hire.
, What is the 8/80 rule? - ANSWER-THE FLSA 8/80 RULE IS A WORKWEEK
EXCEPTION FOR HOSPITALS AND NURSING HOMES. EMPLOYERS USING
THIS RULE PAY OVERTIME FOR WORK OVER 8 HOURS A DAY OR 80 HOURS
IN A TWO WEEK PERIOD.
Traits of an independent contractor - ANSWER-SETS OWN HOURS; DETERMINES
OWN SEQUENCE OF WORK; WORKS FOR MULTIPLE ORGANIZATIONS; SELF-
EMPLOYED; WORKS BY THE JOB; EMPLOYS ASSISTANTS.
Who is a statutory NONEmployee? (REDS) - ANSWER-Real estate agents, Direct
Sales
Who is a statutory Employee? (DISH) - ANSWER-Agent-driver or commission driver,
full time insurance salesperson, homeworker, or a traveling or city salesperson.
How are statutory ee's treated for tax? - ANSWER-FICA, FUTA - NO FIT -
How are NON statutory ee's treated for tax? - ANSWER-No tax with holding all
1099's
Under common law, what tare the 3 types of control? - ANSWER-
Behavioral/Financial/Type of relationship
What is the amount for 1099? - ANSWER-600
SSNVS - ANSWER-SOCIAL SECURITY NUMBER VERIFICATION SERVICE IS
SSA'S SYSTEM THAT ALLOWS EMPLOYERS TO VERIFY IF AN EMPLOYEE'S
NAME AND SSN MATCH SSA'S RECORDS.
Traits of an employee? - ANSWER-Has taxes with held from wages, reimbursed for
expenses, when, where, and how to work
Exempt employees are determined by? - ANSWER-THE EMPLOYEE'S PRIMARY
JOB DUTIES AND WEEKLY SALARY.
Form W9 - ANSWER-A federal form which requests the taxpayer identification
number or social security number
Overnight travel is time worked: - ANSWER-Overnight travel by a nonexempt
employee is time worked during periods that coincide with the employee's regular
working hours, on scheduled work days and non-working days.
What information, if any, is reported on a statutory employee's Form W-2? -
ANSWER-Wages in Boxes 1, 3, and 5, with the Statutory Employee check box in 13
checked
The minimum salary requirement does not apply to exempt professional employees
who are: - ANSWER-The FLSA minimum salary for exempt employees does not
apply to attorneys, physicians, and teachers.
