CPP CERTIFIED PAYROLL PROFESSIONAL EXAM PRACTICE 2023-2024 ACTUAL EXAM 400 QUESTIONS AND
CORRECT DETAILED ANSWERS
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
,CPP CERTIFIED PAYROLL PROFESSIONAL EXAM PRACTICE 2023-2024 ACTUAL EXAM 400 QUESTIONS AND
CORRECT DETAILED ANSWERS
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.
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
,CPP CERTIFIED PAYROLL PROFESSIONAL EXAM PRACTICE 2023-2024 ACTUAL EXAM 400 QUESTIONS AND
CORRECT DETAILED ANSWERS
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
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
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
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
Agent-drivers, commission-drivers and full-time life insurance salespersons are which of the following?
, CPP CERTIFIED PAYROLL PROFESSIONAL EXAM PRACTICE 2023-2024 ACTUAL EXAM 400 QUESTIONS AND
CORRECT DETAILED ANSWERS
A. Statutory Employees
B. Statutory Nonemployees
C. Employees
D. Independent Contractors - (answer) A
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
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
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
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
CORRECT DETAILED ANSWERS
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
,CPP CERTIFIED PAYROLL PROFESSIONAL EXAM PRACTICE 2023-2024 ACTUAL EXAM 400 QUESTIONS AND
CORRECT DETAILED ANSWERS
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.
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
,CPP CERTIFIED PAYROLL PROFESSIONAL EXAM PRACTICE 2023-2024 ACTUAL EXAM 400 QUESTIONS AND
CORRECT DETAILED ANSWERS
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
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
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
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
Agent-drivers, commission-drivers and full-time life insurance salespersons are which of the following?
, CPP CERTIFIED PAYROLL PROFESSIONAL EXAM PRACTICE 2023-2024 ACTUAL EXAM 400 QUESTIONS AND
CORRECT DETAILED ANSWERS
A. Statutory Employees
B. Statutory Nonemployees
C. Employees
D. Independent Contractors - (answer) A
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
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
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
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
