CPP - Certified Payroll Professional
practice exam questions and answers
form 940 -
correct answer ✅Employer's Annual federal unemployment tax
return -
FUTA (act)
How, if at all, are payments made to employees during absence
from work due to illness under their employer's sick pay/disability
plan treated for social security and Medicare taxation? -
correct answer ✅Social Security and Medicare taxable for the first
6 calendar months
Under the FLSA, all of the following payments are included in the
regular rate of pay: -
correct answer ✅Remuneration paid employees / pay period paid
Salaries, commissions, bonuses
Room and board provided by employer
To qualify as an executive exempt from the minimum wage and
overtime requirements of the FLSA, what must the employee's
responsibilities include? Payroll Source Section 2.4-1 -
correct answer ✅Manage 2 or more full-time equivalent
employees
,CPP - Certified Payroll Professional
practice exam questions and answers
When must an employee file a new Form W-4 in 2024 to continue
exempt status from 2023?
The Payroll Source Section 6.3-1 -
correct answer ✅February 15
5. What is the minimum a nonexempt employee must be paid
under the FLSA when the employee is paid $8.00 per hour for the
first 30 hours of work and $10.00 per hour for the next 20 hours of
work in a workweek?
The Payroll Source Section 2.6-4 -
correct answer ✅weighted avg = all differing job pay rates / total
hours all jobs
[($8x30)+($10x20)] / 50 = $8.8 reg, $13.20 ot
then: ($8.8x40)+($13.2x10) = $484
$484
6. What form may employees receiving $20.00 or more in tips per
month use to report the tips to their employer?
,CPP - Certified Payroll Professional
practice exam questions and answers
The Payroll Source Section 3.4-27 -
correct answer ✅Form 4070, Employee's Report of Tips to
Employer
what does FLSA regulate? CROME mnemonic -
correct answer ✅Child Labor
Record Keeping
Overtime Pay
Minimum Wage
Equal Pay
to use the optional flat rate for federal income tax withholding from
a supplemental wage payment, how must supplemental wage
payments be treated?
The Payroll Source Section 6.4-4 -
correct answer ✅supplemental wages must be identified
separately. paid at same time as regular wage payment.
22% flat rate
9. What are disposable earnings?
, CPP - Certified Payroll Professional
practice exam questions and answers
The Payroll Source Section 9.1-2 -
correct answer ✅net pay.
Earnings remaining after withholding for income taxes and other
amounts required by law
(voluntary deductions / union fees don't count)
10. What must a nonexempt employee be paid under the FLSA if
the employee is paid $10.00 per hour, works 40 hours in a
workweek, and is paid 8 hours for a holiday in accordance with
company policy?
The Payroll Source Section 2.6-3 -
correct answer ✅$480
$10x40 = 400
$10x8 paid company holiday hours (not worked) - not considered
part of regular pay rate / OT not applicable = $80
11. An employer pays an employee a bonus of $2,000, and chooses
to pay the employment taxes on the bonus (therefore net bonus of
2k). The employee lives and works in a state which has no income
practice exam questions and answers
form 940 -
correct answer ✅Employer's Annual federal unemployment tax
return -
FUTA (act)
How, if at all, are payments made to employees during absence
from work due to illness under their employer's sick pay/disability
plan treated for social security and Medicare taxation? -
correct answer ✅Social Security and Medicare taxable for the first
6 calendar months
Under the FLSA, all of the following payments are included in the
regular rate of pay: -
correct answer ✅Remuneration paid employees / pay period paid
Salaries, commissions, bonuses
Room and board provided by employer
To qualify as an executive exempt from the minimum wage and
overtime requirements of the FLSA, what must the employee's
responsibilities include? Payroll Source Section 2.4-1 -
correct answer ✅Manage 2 or more full-time equivalent
employees
,CPP - Certified Payroll Professional
practice exam questions and answers
When must an employee file a new Form W-4 in 2024 to continue
exempt status from 2023?
The Payroll Source Section 6.3-1 -
correct answer ✅February 15
5. What is the minimum a nonexempt employee must be paid
under the FLSA when the employee is paid $8.00 per hour for the
first 30 hours of work and $10.00 per hour for the next 20 hours of
work in a workweek?
The Payroll Source Section 2.6-4 -
correct answer ✅weighted avg = all differing job pay rates / total
hours all jobs
[($8x30)+($10x20)] / 50 = $8.8 reg, $13.20 ot
then: ($8.8x40)+($13.2x10) = $484
$484
6. What form may employees receiving $20.00 or more in tips per
month use to report the tips to their employer?
,CPP - Certified Payroll Professional
practice exam questions and answers
The Payroll Source Section 3.4-27 -
correct answer ✅Form 4070, Employee's Report of Tips to
Employer
what does FLSA regulate? CROME mnemonic -
correct answer ✅Child Labor
Record Keeping
Overtime Pay
Minimum Wage
Equal Pay
to use the optional flat rate for federal income tax withholding from
a supplemental wage payment, how must supplemental wage
payments be treated?
The Payroll Source Section 6.4-4 -
correct answer ✅supplemental wages must be identified
separately. paid at same time as regular wage payment.
22% flat rate
9. What are disposable earnings?
, CPP - Certified Payroll Professional
practice exam questions and answers
The Payroll Source Section 9.1-2 -
correct answer ✅net pay.
Earnings remaining after withholding for income taxes and other
amounts required by law
(voluntary deductions / union fees don't count)
10. What must a nonexempt employee be paid under the FLSA if
the employee is paid $10.00 per hour, works 40 hours in a
workweek, and is paid 8 hours for a holiday in accordance with
company policy?
The Payroll Source Section 2.6-3 -
correct answer ✅$480
$10x40 = 400
$10x8 paid company holiday hours (not worked) - not considered
part of regular pay rate / OT not applicable = $80
11. An employer pays an employee a bonus of $2,000, and chooses
to pay the employment taxes on the bonus (therefore net bonus of
2k). The employee lives and works in a state which has no income
