CPP Certified Payroll Professional APA Master Exam Practice with correct answers 2025.pdf

CPP Certified Payroll Professional APA
Master Exam Practice with correct
answers 2025

FormvSS-8v-vcorrect-
answersDeterminationvofvWorkervStatusvforvPurposesvofvFederalvEmploymentvTaxesvandvIncomevT
axvWithholding



FormvW-9v-vcorrect-
answersFirst,vitvisvusedvbyvthirdvpartiesvtovcollectvidentifyingvinformationvtovhelpvfilevinformationvr
eturnsvwithvthevIRS.



ThevformvisvnevervactuallyvsentvtovthevIRS,vbutvisvmaintainedvbyvthevpersonvwhovfilesvthevinformati
onvreturnvforvverificationvpurposes.v



ThevinformationvonvthevFormvW-9vandvthevpaymentvmadevarevreportedvonvavFormv1099.



Thevsecondvpurposevisvtovhelpvthevpayeevavoidvbackupvwithholding.vThevpayervmustvcollectvwithh
oldingvtaxesvonvcertainvreportablevpaymentsvforvthevIRS.vHowever,vifvthevpayeevcertifiesvonvthevW-
9vtheyvarevnotvsubjectvtovbackupvwithholdingvtheyvgenerallyvreceivevthevfullvpaymentvduevthemvfr
omvthevpayer.vThisvisvsimilarvtovthevwithholdingvexemptionsvcertificationsvfoundvonvFormvW-
4vforvemployees.

,FormvSS-5v-vcorrect-answersApplyvforvanvoriginalvSocialvSecurityvcard

ApplyvforvavreplacementvSocialvSecurityvcard

ChangevorvcorrectvinformationvonvyourvSocialvSecurityvnumbervrecord



FormvSS-4v-vcorrect-answersApplicationvforvEmployervIdentificationvNumberv(EIN)



Accountingvequationv(BalancevSheet)v-vcorrect-answersAssetsv=vLiabilitiesv+vCapital

Assetsv-vLiabilitiesv=v(Shareholders'vorvOwners'vEquity)



Assetv(DebitvorvCreditvNormalvBalance?)v-vcorrect-answersDebit



Expensev(DebitvorvCreditvNormalvBalance?)v-vcorrect-answersDebit



Liabilityv(DebitvorvCreditvNormalvBalance?)v-vcorrect-answersCredit



Capitalv(DebitvorvCreditvNormalvBalance?)v-vcorrect-answersCredit



OwnersvEquityv(DebitvorvCreditvNormalvBalance?)v-vcorrect-answersCredit



Revenuev(DebitvorvCreditvNormalvBalance?)v-vcorrect-answersCredit



Escheatvlawsv-vcorrect-
answersRefervtovunclaimedvpropertyvobligations.vCompaniesvwhovissuevchecks-
forvwages,vpayroll,vemployeevcommissions,vreturnablevgarnishments,vdeferredvcompensation,vpa
yrollvservicesvorvbonuseshavevavpotentialv(andvprobable)vunclaimedvpropertyvobligation.

,SchedulevDv(Formv941)v-vcorrect-
answerstovexplainvcertainvdiscrepanciesv(causedvbyvacquisitions,vstatutoryvmergers,vandvconsolid
ations)vbetweenvFormsvW-
2,vWagevandvTaxvStatementv(CopyvA),vandvFormsv941,vEmployer'svQUARTERLYvFederalvTaxvReturn,v
forvthevtotalsvofvsocialvsecurityvwages,vMedicarevwagesvandvtips,vsocialvsecurityvtips,vfederalvincom
evtaxvwithheld,vandvadvancevearnedvincomevcreditv(EIC)vpayments



Workweekvforv14vandv15-year-oldsv-vcorrect-
answersOutsidevschoolvhours,vandvonvschoolvdaysvincludingvFridays,vnovmorevthanv3vhours.

Novmorevthanv8vhoursvonvavnon-schoolvday.

Whenvschoolvisvinvsession,vnovmorevthanv18vhoursvpervweek.

Novmorevthanv40vhoursvduringvavweekvwhenvschoolvisvout.

Betweenvthevhoursvofv7va.m.vAndv7vp.m,vextendedvtov9vp.m.vBetweenvJunev1vandvLaborvDay.



1)vWhichvformvisvusedvforvDeterminationvofvEmployeevWorkvStatusvforvPurposesvofvFederalvEmplo
ymentvTaxesvandvIncomevTaxvWithholding?v

A.vFormvI-9v

B.vFormvSS-4v

C.vFormvSS-5v

D.vFormvSS-8v-vcorrect-answersD



2)vWhatvamountvmustvanvindependentvcontractorvbevpaidvforvservicesvrenderedvbeforevanvemploy
ervisvobligatedvtovgivevthemvav1099-MISC?v

A.vOncevtotalvreachesv$600vorvmorev

B.vTotalvpaymentsvreachv$600vorvmorevforvcompany'svfiscalvyearv

C.vTotalvpaymentsvreachv$600vorvmorevforvcalendarvyearv

D.vAnyvindividualvpaymentvmakesvduringvcalendarvyearvexceedingv$600v-vcorrect-answersC

, 3)vQualifiedvrealvestatevagentsvandvdirectvsellersvarevwhichvofvthevfollowing?v

A.vStatutoryvEmployeesv

B.vStatutoryvNonemployeesv

C.vEmployeesv

D.vIndependentvContractorsv-vcorrect-answersB



4)vUndervthevcommonvlawvtest,vthevIRSvexaminersvarevtovgroupvthevevidencevtheyvgathervintovthre
evgeneralvtypesvorv"categories"vWhichvofvthevfollowingvisvnotvonevofvthem?v

A.vBehavioralvcontrolv

B.vFinancialvcontrolv

C.vLocationvofvworkv

D.vRelationshipvofvthevpartiesv-vcorrect-answersC



5)vWhichvofvthevfollowingvisvnotvregulatedvbyvthevFLSA?v

A.vChildvlaborv

B.vOvertimevpayv

C.vMinimumvWagevRatesv

D.v8vhourvworkvdayv-vcorrect-answersD



6)vAgent-drivers,vcommission-driversvandvfull-
timevlifevinsurancevsalespersonsvarevwhichvofvthevfollowing?v

A.vStatutoryvEmployeesv

B.vStatutoryvNonemployeesv

C.vEmployeesv

D.vIndependentvContractorsv-vcorrect-answersA



7)vTherevarevthreevpartsvofvthevABCvtest,vwhichvisvnotvonevofvthem?v