CPP Certified Payroll Professional APA
Master Exam Practice
1) 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 - ANS-D
10) 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
C. Place of work
D. Private letter rulings - ANS-C
100) When are employers required to mail copies of Form W-4 to the IRS?
A. Claims more than 10 withholding allowances
B. Claims exempt from withholding
C. IRS request it in writing
D. Claims 10 withholding allowances and is single - ANS-C
101) When is an employee not subject to FICA tax?
A. Over age of 70
B. Over age of 65
C. Over age of 59 1/2
D. None of the above - ANS-D
102) What does OASDI stand for?
A. Old Age Survivors and Disability Insurance
B. Old Age Survivors and Disability Income
C. Old Age Severance and Disability Insurance
D. Old Age Severance and Disability Income - ANS-A
103) Non qualified plans go in which box on the Form W-2?
A. Box 8
B. Box 9
C. Box 10
D. Box 11 - ANS-D
104) In which box on Form W-2 should allocated tips be reported?
A. Box 1
B. Box 1, 3 and 5
C. Box 1, 5 and 7
,D. Box 8 - ANS-D
105) An employee's gross for the year is 30,000 In which box on Form W-2 must an employer
provided dependent care assistance be included when it exceeds $5,000?
A. Box 1 and 10
B. Box 1, 3 and 5
C. Box 10
D. Box 1, 3, 5 and 10 - ANS-D
106) Group term life insurance over $50,000 is reported in Box 12 on Form W-2 What code is
also included?
A. Code A
B. Code C
C. Code L
D. Code P - ANS-B
107) The IRS will send an employer a federal tax levy on which of the following form?
A. Form 668-D 4 part
B. Form 668-D 6 part
C. Form 668-W 4 part
D. Form 668-W 6 part - ANS-D
108) Who sets the maximum amount that can be withhold from an employee's wages for child
or spousal support?
A. IRS
B. FLSA
C. CCPA
D. Individual States - ANS-C
109) If an employee is not supporting another child and/or spouse and is not in arrears, what is
the maximum amount of disposable earnings that can be withheld?
A. 50%
B. 55%
C. 60%
D. 65% - ANS-C
11) What does FLSA stand for?
A. Federal Labor Standards Act
B. Fair Labor Standards Act
C. Federal Labor Standards Agency
D. Fair Labor Standards Agency - ANS-B
110) An employer may charge the employee an administrative fee for processing the wage
withholding order each payperiod Who sets the maximum amount for the fee?
A. IRS
B. FLSA
C. CCPA
D. Individual States - ANS-D
111) What is the maximum amount an employee's disposable earnings that can be garnished to
pay a debt? A. 25%
B. 30%
,C. 65%
D. 75% - ANS-A
113) Which of the following is subtracted from earnings to calculate disposable earnings?
A. All active deductions
B. All deductions required by law
C. Union Dues
D. Life insurance premiums - ANS-B
114) Which of the following requires an employee's signature?
A. IRS levy
B. Child support withholding order
C. Federal taxes
D. Company loan repayment deduction - ANS-D
115) If all the following were received at the same time which one would take the highest
priority?
A. Child support
B. Student Loans
C. Garnishments
D. IRS tax levy - ANS-A
116) How long must an employer retain an employees W-4 A. Two years after due date of the
tax return
B. Three years after due date of the tax return
C. Four years after due date of the tax return
D. Five years after due date of the tax return - ANS-C
117) ADEA requires employer to retain records of an employee's name, address, date of birth,
occupation, pay rate and compensation for how long?
A. Two years
B. Three years
C. Four years
D. Five years - ANS-B
118) FLSA requires certain records to be kept by all covered employers for all employees and
retained for how many years?
A. Two years
B. Three years
C. Four years
D. Two or three years - ANS-D
119) Form I-9 must be made available for inspection by the Department of Labor within how
many days of a request? A. Three days
B. Four days
C. Five days
D. As soon as they arrive - ANS-A
12) Which of the following is not covered under the FLSA?
A. Regulate how often employees must be paid
B. Mandates equal pay for equal work
C. Requires recordkeeping by employers
, D. sets the minimum wage and overtime rates employees must receive for their work - ANS-A
120) Records required by the ADEA must be kept at the employee's worksite or a central
recordkeeping location If the records are kept at a central location how long does an employer
have to turnover the records for inspection by EEOC?
A. 24 hours
B. 48 hours
C. 72 hours
D. As soon as they arrive - ANS-C
121) Which of the following is not an expense account?
A. Wages payable
B. Employer paid benefit costs
C. Maintenance for computers
D. Office supply costs - ANS-A
122) Of the following accounts which does not have a normal balance as a debit?
A. Income Distributed
B. Expense
C. Asset
D. Equity - ANS-D
123) Of the following accounts which is not a liability account?
A. Accounts payable
B. Contributions owed to a company benefit plan
C. Employer share of payroll taxes
D. Union dues deducted from pay but not yet paid to union - ANS-C
124) Which of the following account does not have a normal balance as a credit?
A. Revenue
B. Expense
C. Contributed Capital
D. Equity - ANS-B
125) Which of the following is not part of the balance sheet?
A. Net earnings
B. Deferred assets
C. Long term liabilities
D. Plant, property and equipment - ANS-A
126) Of the following which is not on the income statement?
A. Shareholder's equity
B. Earnings per share
C. Non-operating expenses
D. Gross margin on sales - ANS-A
127) Which of the following is classified as a record of original entry?
A. General ledger
B. Trail balance
C. Journal
D. Posting - ANS-C
Master Exam Practice
1) 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 - ANS-D
10) 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
C. Place of work
D. Private letter rulings - ANS-C
100) When are employers required to mail copies of Form W-4 to the IRS?
A. Claims more than 10 withholding allowances
B. Claims exempt from withholding
C. IRS request it in writing
D. Claims 10 withholding allowances and is single - ANS-C
101) When is an employee not subject to FICA tax?
A. Over age of 70
B. Over age of 65
C. Over age of 59 1/2
D. None of the above - ANS-D
102) What does OASDI stand for?
A. Old Age Survivors and Disability Insurance
B. Old Age Survivors and Disability Income
C. Old Age Severance and Disability Insurance
D. Old Age Severance and Disability Income - ANS-A
103) Non qualified plans go in which box on the Form W-2?
A. Box 8
B. Box 9
C. Box 10
D. Box 11 - ANS-D
104) In which box on Form W-2 should allocated tips be reported?
A. Box 1
B. Box 1, 3 and 5
C. Box 1, 5 and 7
,D. Box 8 - ANS-D
105) An employee's gross for the year is 30,000 In which box on Form W-2 must an employer
provided dependent care assistance be included when it exceeds $5,000?
A. Box 1 and 10
B. Box 1, 3 and 5
C. Box 10
D. Box 1, 3, 5 and 10 - ANS-D
106) Group term life insurance over $50,000 is reported in Box 12 on Form W-2 What code is
also included?
A. Code A
B. Code C
C. Code L
D. Code P - ANS-B
107) The IRS will send an employer a federal tax levy on which of the following form?
A. Form 668-D 4 part
B. Form 668-D 6 part
C. Form 668-W 4 part
D. Form 668-W 6 part - ANS-D
108) Who sets the maximum amount that can be withhold from an employee's wages for child
or spousal support?
A. IRS
B. FLSA
C. CCPA
D. Individual States - ANS-C
109) If an employee is not supporting another child and/or spouse and is not in arrears, what is
the maximum amount of disposable earnings that can be withheld?
A. 50%
B. 55%
C. 60%
D. 65% - ANS-C
11) What does FLSA stand for?
A. Federal Labor Standards Act
B. Fair Labor Standards Act
C. Federal Labor Standards Agency
D. Fair Labor Standards Agency - ANS-B
110) An employer may charge the employee an administrative fee for processing the wage
withholding order each payperiod Who sets the maximum amount for the fee?
A. IRS
B. FLSA
C. CCPA
D. Individual States - ANS-D
111) What is the maximum amount an employee's disposable earnings that can be garnished to
pay a debt? A. 25%
B. 30%
,C. 65%
D. 75% - ANS-A
113) Which of the following is subtracted from earnings to calculate disposable earnings?
A. All active deductions
B. All deductions required by law
C. Union Dues
D. Life insurance premiums - ANS-B
114) Which of the following requires an employee's signature?
A. IRS levy
B. Child support withholding order
C. Federal taxes
D. Company loan repayment deduction - ANS-D
115) If all the following were received at the same time which one would take the highest
priority?
A. Child support
B. Student Loans
C. Garnishments
D. IRS tax levy - ANS-A
116) How long must an employer retain an employees W-4 A. Two years after due date of the
tax return
B. Three years after due date of the tax return
C. Four years after due date of the tax return
D. Five years after due date of the tax return - ANS-C
117) ADEA requires employer to retain records of an employee's name, address, date of birth,
occupation, pay rate and compensation for how long?
A. Two years
B. Three years
C. Four years
D. Five years - ANS-B
118) FLSA requires certain records to be kept by all covered employers for all employees and
retained for how many years?
A. Two years
B. Three years
C. Four years
D. Two or three years - ANS-D
119) Form I-9 must be made available for inspection by the Department of Labor within how
many days of a request? A. Three days
B. Four days
C. Five days
D. As soon as they arrive - ANS-A
12) Which of the following is not covered under the FLSA?
A. Regulate how often employees must be paid
B. Mandates equal pay for equal work
C. Requires recordkeeping by employers
, D. sets the minimum wage and overtime rates employees must receive for their work - ANS-A
120) Records required by the ADEA must be kept at the employee's worksite or a central
recordkeeping location If the records are kept at a central location how long does an employer
have to turnover the records for inspection by EEOC?
A. 24 hours
B. 48 hours
C. 72 hours
D. As soon as they arrive - ANS-C
121) Which of the following is not an expense account?
A. Wages payable
B. Employer paid benefit costs
C. Maintenance for computers
D. Office supply costs - ANS-A
122) Of the following accounts which does not have a normal balance as a debit?
A. Income Distributed
B. Expense
C. Asset
D. Equity - ANS-D
123) Of the following accounts which is not a liability account?
A. Accounts payable
B. Contributions owed to a company benefit plan
C. Employer share of payroll taxes
D. Union dues deducted from pay but not yet paid to union - ANS-C
124) Which of the following account does not have a normal balance as a credit?
A. Revenue
B. Expense
C. Contributed Capital
D. Equity - ANS-B
125) Which of the following is not part of the balance sheet?
A. Net earnings
B. Deferred assets
C. Long term liabilities
D. Plant, property and equipment - ANS-A
126) Of the following which is not on the income statement?
A. Shareholder's equity
B. Earnings per share
C. Non-operating expenses
D. Gross margin on sales - ANS-A
127) Which of the following is classified as a record of original entry?
A. General ledger
B. Trail balance
C. Journal
D. Posting - ANS-C
