CPP - Certified Payroll Professional Exam questions with correct answers

questions with correct answers Counseling is appropriate when: a. salaries have been frozen. b. introducing a new procedure. c. explaining tax law changes. d. orienting new employees. Correct Answer-a. salaries have been frozen. In addition to the accuracy-related penalty for underpayment of taxes, if the underpayment of taxes is due to fraud, the IRS may asses an additional penalty of: Correct Answer-75% If an employer's total tax liability for the lookback period is $75,000.00, a tax liability less than $100,000 must be deposited no later than: Correct Answer-Wednesday or Friday under the semiweekly rules. A company has accrued $23,665.00 of vacation pay to a liability account. When employees are paid the vacation amount due, the entries to the vacation liability account will be recorded as a: Correct Answer-debit to the liability account. Under the FLSA, when a highly compensated exempt employee receives less than $100,000.00 in compensation during the year, the employer may: Correct Answer-within one month after the end of the year, make a final payment to the employee to reach $100,000.00 in annual compensation. Cafeteria plans and other flexible benefit plans are generally funded by either of the following mechanisms: Correct Answer-"flex dollars" or "flex credits", salary reduction, or after tax contributions.