Module 2-CPP Exam Questions and All
Correct Answers 2026 Updated.
An employee receives a $3,700.00 net bonus at year-end. When receiving the bonus, the
employee's year-to-date taxable compensation is $133,200.00. There is no state or local tax
withholding. Using the Optional Flat Rate Method, calculate the taxable income of the bonus. -
Answer 5030.59
100%-25% fed tax - 1.45% Medicare=73.55%
3700/73.55%
Under the FLSA, calculate a nonexempt employee's regular rate of pay for a workweek when the
employee is paid $3.00 for each item produced, produces 200 items, and works 45 hours. -
Answer $13.33
3.00*200=600
600/45
When making a supplemental wage payment to an employee whose YTD supplemental wages
exceed $1,000,000.00, what tax rate is used to calculate federal income tax withholding?
a. 7.65%
b. 25%
c. 35%
d. 39.6% - Answer 39.6%
An employer has been authorized by the employee to make deductions from the employee's
wages for union dues and health insurance. In what order must the employer withhold these
deductions?
a. Health insurance, union dues
b. Union dues, health insurance
c. Any order the employer chooses
d. Any order the employee chooses - Answer Any order the employer chooses
, When using the Optional Flat Rate Method, by what percentage is a bonus divided when
grossing up for employees with YTD wages less than $127,200.00 with no state or local
withholding taxes? - Answer 67.35%
100-25-6.2-1.45
Using the Percentage Method, calculate the federal income tax withholding based on the
following information. An employee earns $2,700.00 semimonthly and claims married, 1
allowance(s). - Answer 286.78
Using the Wage-Bracket Method, calculate the federal income tax withholding, based on the
following information. An employee earns $1,440.00 semimonthly and claims married, 1
allowance(s). - Answer 99
In 2017, an employee earned $99,700.00. Calculate the combined amount that the employee
and employer must pay in social security and Medicare taxes for the year. - Answer
15,254.10
How does imputed income impact an employee's net pay?
It increases the pay by the taxes paid by the employer.
It decreases the net pay by the additional taxes.
It decreases the taxes by the imputed income.
It increases the pay by the imputed income. - Answer It decreases the net pay by the
additional taxes.
A charitable contribution is substantiated with which two documents?
Driver's license and social security card
Forms W-2 and 941
Form W-2 and pledge card
Pay stub and company I.D. card - Answer Form W-2 and pledge card
All of the following deductions are voluntary EXCEPT:
401(k) contributions.
charitable contributions.
Correct Answers 2026 Updated.
An employee receives a $3,700.00 net bonus at year-end. When receiving the bonus, the
employee's year-to-date taxable compensation is $133,200.00. There is no state or local tax
withholding. Using the Optional Flat Rate Method, calculate the taxable income of the bonus. -
Answer 5030.59
100%-25% fed tax - 1.45% Medicare=73.55%
3700/73.55%
Under the FLSA, calculate a nonexempt employee's regular rate of pay for a workweek when the
employee is paid $3.00 for each item produced, produces 200 items, and works 45 hours. -
Answer $13.33
3.00*200=600
600/45
When making a supplemental wage payment to an employee whose YTD supplemental wages
exceed $1,000,000.00, what tax rate is used to calculate federal income tax withholding?
a. 7.65%
b. 25%
c. 35%
d. 39.6% - Answer 39.6%
An employer has been authorized by the employee to make deductions from the employee's
wages for union dues and health insurance. In what order must the employer withhold these
deductions?
a. Health insurance, union dues
b. Union dues, health insurance
c. Any order the employer chooses
d. Any order the employee chooses - Answer Any order the employer chooses
, When using the Optional Flat Rate Method, by what percentage is a bonus divided when
grossing up for employees with YTD wages less than $127,200.00 with no state or local
withholding taxes? - Answer 67.35%
100-25-6.2-1.45
Using the Percentage Method, calculate the federal income tax withholding based on the
following information. An employee earns $2,700.00 semimonthly and claims married, 1
allowance(s). - Answer 286.78
Using the Wage-Bracket Method, calculate the federal income tax withholding, based on the
following information. An employee earns $1,440.00 semimonthly and claims married, 1
allowance(s). - Answer 99
In 2017, an employee earned $99,700.00. Calculate the combined amount that the employee
and employer must pay in social security and Medicare taxes for the year. - Answer
15,254.10
How does imputed income impact an employee's net pay?
It increases the pay by the taxes paid by the employer.
It decreases the net pay by the additional taxes.
It decreases the taxes by the imputed income.
It increases the pay by the imputed income. - Answer It decreases the net pay by the
additional taxes.
A charitable contribution is substantiated with which two documents?
Driver's license and social security card
Forms W-2 and 941
Form W-2 and pledge card
Pay stub and company I.D. card - Answer Form W-2 and pledge card
All of the following deductions are voluntary EXCEPT:
401(k) contributions.
charitable contributions.
