CPP Certified Payroll Professional APA
Master Exam Practice
Form SS-8 - ANSWER Determination of Worker Status for Purposes of Federal
Employment Taxes and Income Tax Withholding
Form W-9 - 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 - 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 - ANSWER Application for Employer Identification Number (EIN)
Accounting equation (Balance Sheet) - ANSWER Assets = Liabilities + Capital
Assets - Liabilities = (Shareholders' or Owners' Equity)
Asset (Debit or Credit Normal Balance?) - ANSWER Debit
Expense (Debit or Credit Normal Balance?) - ANSWER Debit
Liability (Debit or Credit Normal Balance?) - ANSWER Credit
Capital (Debit or Credit Normal Balance?) - ANSWER Credit
Owners Equity (Debit or Credit Normal Balance?) - ANSWER Credit
Revenue (Debit or Credit Normal Balance?) - ANSWER Credit
Escheat laws - 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) - 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 - 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 - 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 individual payment makes during calendar year exceeding $600 - ANSWER
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 - ANSWER 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 - ANSWER 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 - ANSWER 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 - ANSWER 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 - ANSWER 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 - ANSWER B
9) What is Form I-9 used for?
A. Application for Employer Identification Number
B. Determination of Employee Work Status
C. Application for IRS Individual Taxpayer
D. Employment Eligibility Verification - ANSWER D
10) Under the reasonable basis test, which of the following does not support an
employer's treatment of a worker as an independent contractor?
A. Past IRS employment tax audit
B. Published IRS rulings
C. Place of work
D. Private letter rulings - ANSWER C
11) What does FLSA stand for?
A. Federal Labor Standards Act
B. Fair Labor Standards Act
C. Federal Labor Standards Agency
D. Fair Labor Standards Agency - ANSWER B
12) Which of the following is not covered under the FLSA?
A. Regulate how often employees must be paid
B. Mandates equal pay for equal work
C. Requires recordkeeping by employers
D. sets the minimum wage and overtime rates employees must receive for their work
- ANSWER A
13) Who enforces the Federal Wage-Hour Law?
A. Individual States
B. IRS
, C. EEOC
D. DOL - ANSWER D
14) Who enforces the equal pay provisions?
A. Individual States
B. IRS
C. EEOC
D. DOL - ANSWER C
15) Which is not one of the White Collar Exemption?
A. Administrative
B. Executive
C. Management
D. Professional employees - ANSWER C
16) For overtime pay Which one is included in the regular rate?
A. Discretionary bonuses
B. Nondiscretionary bonuses
C. Gifts
D. Reimbursed expenses - ANSWER B
17) For calculation of overtime pay Which one is not included in the regular rate?
A. Supplemental disability payments
B. On-call pay
C. Retroactive pay
D. Vacation pay - ANSWER D
18) A computer professional must be paid at least what per hour to be exempt from
overtime requirements under the FLSA?
A. Minimum wage per hour
B. 21.55 per hour
C. 27.63 per hour
D. 29.67 per hour - ANSWER C
20) What is the federal minimum wage rate?
A. 4.25
B. 5.85
C. 6.55
D. 7.25 - ANSWER D
21) So long as the employee's tips are enough to make up the remainder of the
minimum hourly wage What is the federal minimum wage for tipped employee?
A. 2.01
B. 2.07
C. 2.09
D. 2.13 - ANSWER D
22) What is the time limit on filing an FLSA complaint with the Wage and Hour
Division?
A. 1 or 2 years
Master Exam Practice
Form SS-8 - ANSWER Determination of Worker Status for Purposes of Federal
Employment Taxes and Income Tax Withholding
Form W-9 - 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 - 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 - ANSWER Application for Employer Identification Number (EIN)
Accounting equation (Balance Sheet) - ANSWER Assets = Liabilities + Capital
Assets - Liabilities = (Shareholders' or Owners' Equity)
Asset (Debit or Credit Normal Balance?) - ANSWER Debit
Expense (Debit or Credit Normal Balance?) - ANSWER Debit
Liability (Debit or Credit Normal Balance?) - ANSWER Credit
Capital (Debit or Credit Normal Balance?) - ANSWER Credit
Owners Equity (Debit or Credit Normal Balance?) - ANSWER Credit
Revenue (Debit or Credit Normal Balance?) - ANSWER Credit
Escheat laws - 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) - 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 - 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 - 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 individual payment makes during calendar year exceeding $600 - ANSWER
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 - ANSWER 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 - ANSWER 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 - ANSWER 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 - ANSWER 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 - ANSWER 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 - ANSWER B
9) What is Form I-9 used for?
A. Application for Employer Identification Number
B. Determination of Employee Work Status
C. Application for IRS Individual Taxpayer
D. Employment Eligibility Verification - ANSWER D
10) Under the reasonable basis test, which of the following does not support an
employer's treatment of a worker as an independent contractor?
A. Past IRS employment tax audit
B. Published IRS rulings
C. Place of work
D. Private letter rulings - ANSWER C
11) What does FLSA stand for?
A. Federal Labor Standards Act
B. Fair Labor Standards Act
C. Federal Labor Standards Agency
D. Fair Labor Standards Agency - ANSWER B
12) Which of the following is not covered under the FLSA?
A. Regulate how often employees must be paid
B. Mandates equal pay for equal work
C. Requires recordkeeping by employers
D. sets the minimum wage and overtime rates employees must receive for their work
- ANSWER A
13) Who enforces the Federal Wage-Hour Law?
A. Individual States
B. IRS
, C. EEOC
D. DOL - ANSWER D
14) Who enforces the equal pay provisions?
A. Individual States
B. IRS
C. EEOC
D. DOL - ANSWER C
15) Which is not one of the White Collar Exemption?
A. Administrative
B. Executive
C. Management
D. Professional employees - ANSWER C
16) For overtime pay Which one is included in the regular rate?
A. Discretionary bonuses
B. Nondiscretionary bonuses
C. Gifts
D. Reimbursed expenses - ANSWER B
17) For calculation of overtime pay Which one is not included in the regular rate?
A. Supplemental disability payments
B. On-call pay
C. Retroactive pay
D. Vacation pay - ANSWER D
18) A computer professional must be paid at least what per hour to be exempt from
overtime requirements under the FLSA?
A. Minimum wage per hour
B. 21.55 per hour
C. 27.63 per hour
D. 29.67 per hour - ANSWER C
20) What is the federal minimum wage rate?
A. 4.25
B. 5.85
C. 6.55
D. 7.25 - ANSWER D
21) So long as the employee's tips are enough to make up the remainder of the
minimum hourly wage What is the federal minimum wage for tipped employee?
A. 2.01
B. 2.07
C. 2.09
D. 2.13 - ANSWER D
22) What is the time limit on filing an FLSA complaint with the Wage and Hour
Division?
A. 1 or 2 years
