CPP PAYROLL EXAM QUESTIONS AND
ANSWERS 100% PASS
Retention records: How long for IRS? - ANS 4 years (3 is 4)
reduceing taxable income: 401k come out of fed. cafe comes out of all FIT, SS and MED -
ANS note
What does Fair Labor Standards Act regulate? - ANS 1. Overtime
2. Minimum rate of pay
3. Child Labor Laws
4. Equal pay
retention records: How long for FLSA? - ANS 3 years (4 is 3)
3 yeas after the last date of entry or 3 years from the last date they were effective
What records for FLSA must be kept for 3 years after the last date of entry? - ANS Beginning
of workweek
Housre worked each workday
Regular rate of pay
Overtime premium earnings
Additions and deductions from wages
What records for FLSA must be kept for 3 years after the last date they were effective? -
ANS Collective Bargaining agreements
@COPYRIGHT ALL RIGHTS RESERVED PAGE 1 OF 52
,Records showing total sales volume and goods purchased
What are the five areas regulated by the Fair Labor Standards Act? - ANS Minimum Wage
Overtime
Child Labor
Equal pay
Recordkeeping
Under FLSA, what are the differences between enterprise coverage and individual employee
coverage? - ANS Under enterprise coverage, all the employees of a business are covered y
the FLSA so long as a least two employees of the business are engaged in interstate commerce
or involved in the production of goods or services for interstate commerce, and the business
had annual gross sales of at least $500,000.
Individual employees can e covered even if the business is not a covered enterprise if the
employee is engaged in interstate commerce or the production of goods for interstate
commerce.
What is the basic difference between exempt and nonexempt employees? - ANS Exempt
employees do not have to be paid the required minimum wage or overtime pay, and the
employer does not have to keep certain records detailing their work - while nonexempt
employees must be paid the required minimum wage and overtime pay and the employer must
keep detailed records of their work hours and wage payments.
What is the limit for filing an FLSA complaint with the Wage and Hours Division - ANS The
time limit is two years after the alleged violations or three years if the violation was willful.
A plan similar to the fluctuating workweek plan was approved by the U.S. Supreme Court and
later made part of the FLSA and its regulations. What is this plan called, and what does it
provide? - ANS The plan is called the "Belo" plan, named after the company involved in the
Supreme Court's decision, and the plan guarantees a fixed salary for irregular hours that
includes a set amount of overtime pay.
@COPYRIGHT ALL RIGHTS RESERVED PAGE 2 OF 52
,What is the meaning of the term "compensable time"? - ANS "compensable time" is defined
as all hours during which the employee is under the employer's control, even if the time is
unproductive, so long as he time is spent for the employer's benefit.
The "white collar" exemption from minimum wage and overtime provisions of the FLSA is made
up of what categories of employees. - ANS the following categories of employees make up
the "white collar" exemption under FLSA:
Administrative
Executive
Professional
Computer-related professional
Outside Sales
What questions must be answered before overtime pay can be calculated? - ANS The
following questions must be answered to properly calculate overtime pay:
What is he employee's workweek?
What constitutes hours worked?
What payments made to the employee are considered wages?
What is the employee's regular rate of pay?
What is the "regular rate of pay" and how is it determined? - ANS The regular rate of pay is
an hourly rate of pay determined by dividing the total regular pay actually earned for the
workweek by the total of hours worked. For salaried nonexempt employees, the regular rate of
pay is the employee's salary divided by the number of hours the salary is intended to
compensate.
@COPYRIGHT ALL RIGHTS RESERVED PAGE 3 OF 52
, Company B hires a computer systems analyst and agrees to pay the employee $25 an hour. If
this person works over 40 hours in a week, is the employee due overtime pay? - ANS Yes. in
order for the computer professional exemption to apply to an hourly paid employee, the
employee would have to e paid at least $27.63 per hour.
What must an employee's primary duty be to qualify for the administrative employee
exemption under the FLSA? - ANS To qualify as an administrative employee:
* The employee's primary duty must be the performance of office or non-manual work directly
related to the management or general business operations of the employer or the employer's
customers.
* The employee's primary duty must include the exercise of discretion and independent
judgement regarding matters of significance.
What conditions must be met for an employer to take advantage of the tip credit? - ANS the
following conditions must e met for an employer to apply the tip credit to minimum wage:
* the employee must be a "tipped employee", which is an employee working in the occupation
in which he or she regularly receives at least $30 per month in tips.
* The employee must receive at least as much in tips ad the credit taken y the employer.
* The employee must be informed about the tip credit provision of the law before the credit is
taken.
*All tips received by the employee must e kept y the employee, although tip pooling may e
required among employees who are customarily and regularly tipped.
*Credit card tips must be given to the employee be the next pay payday
@COPYRIGHT ALL RIGHTS RESERVED PAGE 4 OF 52
ANSWERS 100% PASS
Retention records: How long for IRS? - ANS 4 years (3 is 4)
reduceing taxable income: 401k come out of fed. cafe comes out of all FIT, SS and MED -
ANS note
What does Fair Labor Standards Act regulate? - ANS 1. Overtime
2. Minimum rate of pay
3. Child Labor Laws
4. Equal pay
retention records: How long for FLSA? - ANS 3 years (4 is 3)
3 yeas after the last date of entry or 3 years from the last date they were effective
What records for FLSA must be kept for 3 years after the last date of entry? - ANS Beginning
of workweek
Housre worked each workday
Regular rate of pay
Overtime premium earnings
Additions and deductions from wages
What records for FLSA must be kept for 3 years after the last date they were effective? -
ANS Collective Bargaining agreements
@COPYRIGHT ALL RIGHTS RESERVED PAGE 1 OF 52
,Records showing total sales volume and goods purchased
What are the five areas regulated by the Fair Labor Standards Act? - ANS Minimum Wage
Overtime
Child Labor
Equal pay
Recordkeeping
Under FLSA, what are the differences between enterprise coverage and individual employee
coverage? - ANS Under enterprise coverage, all the employees of a business are covered y
the FLSA so long as a least two employees of the business are engaged in interstate commerce
or involved in the production of goods or services for interstate commerce, and the business
had annual gross sales of at least $500,000.
Individual employees can e covered even if the business is not a covered enterprise if the
employee is engaged in interstate commerce or the production of goods for interstate
commerce.
What is the basic difference between exempt and nonexempt employees? - ANS Exempt
employees do not have to be paid the required minimum wage or overtime pay, and the
employer does not have to keep certain records detailing their work - while nonexempt
employees must be paid the required minimum wage and overtime pay and the employer must
keep detailed records of their work hours and wage payments.
What is the limit for filing an FLSA complaint with the Wage and Hours Division - ANS The
time limit is two years after the alleged violations or three years if the violation was willful.
A plan similar to the fluctuating workweek plan was approved by the U.S. Supreme Court and
later made part of the FLSA and its regulations. What is this plan called, and what does it
provide? - ANS The plan is called the "Belo" plan, named after the company involved in the
Supreme Court's decision, and the plan guarantees a fixed salary for irregular hours that
includes a set amount of overtime pay.
@COPYRIGHT ALL RIGHTS RESERVED PAGE 2 OF 52
,What is the meaning of the term "compensable time"? - ANS "compensable time" is defined
as all hours during which the employee is under the employer's control, even if the time is
unproductive, so long as he time is spent for the employer's benefit.
The "white collar" exemption from minimum wage and overtime provisions of the FLSA is made
up of what categories of employees. - ANS the following categories of employees make up
the "white collar" exemption under FLSA:
Administrative
Executive
Professional
Computer-related professional
Outside Sales
What questions must be answered before overtime pay can be calculated? - ANS The
following questions must be answered to properly calculate overtime pay:
What is he employee's workweek?
What constitutes hours worked?
What payments made to the employee are considered wages?
What is the employee's regular rate of pay?
What is the "regular rate of pay" and how is it determined? - ANS The regular rate of pay is
an hourly rate of pay determined by dividing the total regular pay actually earned for the
workweek by the total of hours worked. For salaried nonexempt employees, the regular rate of
pay is the employee's salary divided by the number of hours the salary is intended to
compensate.
@COPYRIGHT ALL RIGHTS RESERVED PAGE 3 OF 52
, Company B hires a computer systems analyst and agrees to pay the employee $25 an hour. If
this person works over 40 hours in a week, is the employee due overtime pay? - ANS Yes. in
order for the computer professional exemption to apply to an hourly paid employee, the
employee would have to e paid at least $27.63 per hour.
What must an employee's primary duty be to qualify for the administrative employee
exemption under the FLSA? - ANS To qualify as an administrative employee:
* The employee's primary duty must be the performance of office or non-manual work directly
related to the management or general business operations of the employer or the employer's
customers.
* The employee's primary duty must include the exercise of discretion and independent
judgement regarding matters of significance.
What conditions must be met for an employer to take advantage of the tip credit? - ANS the
following conditions must e met for an employer to apply the tip credit to minimum wage:
* the employee must be a "tipped employee", which is an employee working in the occupation
in which he or she regularly receives at least $30 per month in tips.
* The employee must receive at least as much in tips ad the credit taken y the employer.
* The employee must be informed about the tip credit provision of the law before the credit is
taken.
*All tips received by the employee must e kept y the employee, although tip pooling may e
required among employees who are customarily and regularly tipped.
*Credit card tips must be given to the employee be the next pay payday
@COPYRIGHT ALL RIGHTS RESERVED PAGE 4 OF 52
