CPP CERTIFIED PAYROLL PROFESSIONAL APA MASTER
EXAM PRACTICE PAYROLL MANAGEMENT COURSE
REVIEW 2025/2026 // QUESTION BANK // VERIFIED
QUESTIONS AND ANSWERS GRADED A+ // PAYROLL
COMPLIANCE & MANAGEMENT STUDY GUIDE //
GUARANTEED SUCCESS
33) On what form must wages be reported on if an employee dies after
receiving a paycheck but before cashing it and the check is reissued to the
employee's personal representative?
A. Form W-2D
B. Form W-2
C. Form 1099-MISC
D. Form 1099-R - CORRECT ANSWER -B
34) Wages paid after the year of death are subject to what withholding taxes?
A. Social Security, Medicare, Federal income tax and FUTA
B. Social Security, Medicare and FUTA
C. Social Security, Medicare
D. None - CORRECT ANSWER -D
35) The IRS approved rate for employer provided fuel for 2018 is?
A. 5 cents per mile
B. 5.5 cents per mile
C. 55.5 cents per mile
D. 58.5 cents per mile - CORRECT ANSWER -B
,36) Which of the following is not a recordkeeping requirement for business use
of company provided vehicles?
A. Trips mileage
B. Trips date
C. Trips usage of car phone
D. Business purpose of the trip - CORRECT ANSWER -C
37) Wages paid after the year of death are report on which of the following
form?
A. Form W-2D
B. Form W-2
C. Form 1099-MISC
D. Form 1099-R - CORRECT ANSWER -C
38) The IRS standard business mileage rate for 2018 is?
A. 5.5 cents per mile
B. 51 cents per mile
C. 54.5 cents per mile
D. 58.5 cents per mile - CORRECT ANSWER -C
43) What is the maximum amount of employer provided group term life
insurance that can be excluded from an employee's income?
A. One times their annual salary
B. $2,000
C. $50,000
D. $100,000 - CORRECT ANSWER -C
,44) Which of the following is a "de minimis" fringe and is excluded from
taxable earnings?
A. $25 gift certificate for Rainbow Foods
B. $25 Target gift certificate
C. $25 company check
D. Gift certificate (e.g. Ham, Turkey) - CORRECT ANSWER -D
46) Under the IRC, which section regulates cafeteria plans?
A. 123
B. 125
C. 127
D. 129 - CORRECT ANSWER -B
47) What is the maximum amount for 2018 that an employee may elect to
defer to a 401 (k) or 403 (b) plan? A. $15,000
B. $15,500
C. $16,500
D. $18,500 - CORRECT ANSWER -D
48) What is the maximum amount for 2018 that an employee may elect to
defer to a 457 plan?
A. $15,500
B. $16,500
C. $18,500
D. $19,500 - CORRECT ANSWER -C
, 49) What is the maximum amount for 2018 that an employee may elect for
FSA dependent care?
A. $2,400
B. $5,000
C. $7,500
D. No Limit - CORRECT ANSWER -B
50) An employer with 120 participants offering a cafeteria plan must annually
file what form?
A. Suspended in 2002 no filing needed
B. Form 5500 C/R
C. Form 5500
D. Form 5550 C/R - CORRECT ANSWER -A
51) Which of the following can not be part of a cafeteria plan?
A. Group-term life insurance
B. Qualified adoption assistance
C. Cash
D. Medical Savings Accounts - CORRECT ANSWER -D
52) Under a cafeteria plan, pretax contribution to a 401 (k) are subject to what
federal taxes?
A. FICA, FUTA and FIT
B. FICA and FUTA
C. FICA
D. None - CORRECT ANSWER -B
EXAM PRACTICE PAYROLL MANAGEMENT COURSE
REVIEW 2025/2026 // QUESTION BANK // VERIFIED
QUESTIONS AND ANSWERS GRADED A+ // PAYROLL
COMPLIANCE & MANAGEMENT STUDY GUIDE //
GUARANTEED SUCCESS
33) On what form must wages be reported on if an employee dies after
receiving a paycheck but before cashing it and the check is reissued to the
employee's personal representative?
A. Form W-2D
B. Form W-2
C. Form 1099-MISC
D. Form 1099-R - CORRECT ANSWER -B
34) Wages paid after the year of death are subject to what withholding taxes?
A. Social Security, Medicare, Federal income tax and FUTA
B. Social Security, Medicare and FUTA
C. Social Security, Medicare
D. None - CORRECT ANSWER -D
35) The IRS approved rate for employer provided fuel for 2018 is?
A. 5 cents per mile
B. 5.5 cents per mile
C. 55.5 cents per mile
D. 58.5 cents per mile - CORRECT ANSWER -B
,36) Which of the following is not a recordkeeping requirement for business use
of company provided vehicles?
A. Trips mileage
B. Trips date
C. Trips usage of car phone
D. Business purpose of the trip - CORRECT ANSWER -C
37) Wages paid after the year of death are report on which of the following
form?
A. Form W-2D
B. Form W-2
C. Form 1099-MISC
D. Form 1099-R - CORRECT ANSWER -C
38) The IRS standard business mileage rate for 2018 is?
A. 5.5 cents per mile
B. 51 cents per mile
C. 54.5 cents per mile
D. 58.5 cents per mile - CORRECT ANSWER -C
43) What is the maximum amount of employer provided group term life
insurance that can be excluded from an employee's income?
A. One times their annual salary
B. $2,000
C. $50,000
D. $100,000 - CORRECT ANSWER -C
,44) Which of the following is a "de minimis" fringe and is excluded from
taxable earnings?
A. $25 gift certificate for Rainbow Foods
B. $25 Target gift certificate
C. $25 company check
D. Gift certificate (e.g. Ham, Turkey) - CORRECT ANSWER -D
46) Under the IRC, which section regulates cafeteria plans?
A. 123
B. 125
C. 127
D. 129 - CORRECT ANSWER -B
47) What is the maximum amount for 2018 that an employee may elect to
defer to a 401 (k) or 403 (b) plan? A. $15,000
B. $15,500
C. $16,500
D. $18,500 - CORRECT ANSWER -D
48) What is the maximum amount for 2018 that an employee may elect to
defer to a 457 plan?
A. $15,500
B. $16,500
C. $18,500
D. $19,500 - CORRECT ANSWER -C
, 49) What is the maximum amount for 2018 that an employee may elect for
FSA dependent care?
A. $2,400
B. $5,000
C. $7,500
D. No Limit - CORRECT ANSWER -B
50) An employer with 120 participants offering a cafeteria plan must annually
file what form?
A. Suspended in 2002 no filing needed
B. Form 5500 C/R
C. Form 5500
D. Form 5550 C/R - CORRECT ANSWER -A
51) Which of the following can not be part of a cafeteria plan?
A. Group-term life insurance
B. Qualified adoption assistance
C. Cash
D. Medical Savings Accounts - CORRECT ANSWER -D
52) Under a cafeteria plan, pretax contribution to a 401 (k) are subject to what
federal taxes?
A. FICA, FUTA and FIT
B. FICA and FUTA
C. FICA
D. None - CORRECT ANSWER -B
