CPP CERTIFIED PAYROLL
PROFESSIONAL APA MASTER EXAM
PRACTICE QUESTIONS AND ANSWERS
Form6SS-86-6ans--
Determination6of6Worker6Status6for6Purposes6of6Federal6Employment6Taxes6and6Incom
e6Tax6Withholding
Form6W-96-6ans--
First,6it6is6used6by6third6parties6to6collect6identifying6information6to6help6file6information6re
turns6with6the6IRS.
The6form6is6never6actually6sent6to6the6IRS,6but6is6maintained6by6the6person6who6files6the6
information6return6for6verification6purposes.6
The6information6on6the6Form6W-96and6the6payment6made6are6reported6on6a6Form61099.
The6second6purpose6is6to6help6the6payee6avoid6backup6withholding.6The6payer6must6coll
ect6withholding6taxes6on6certain6reportable6payments6for6the6IRS.6However,6if6the6payee6
certifies6on6the6W-
96they6are6not6subject6to6backup6withholding6they6generally6receive6the6full6payment6due
6them6from6the6payer.6This6is6similar6to6the6withholding6exemptions6certifications6found6o
n6Form6W-46for6employees.
Form6SS-56-6ans--Apply6for6an6original6Social6Security6card
Apply6for6a6replacement6Social6Security6card
Change6or6correct6information6on6your6Social6Security6number6record
Form6SS-46-6ans--Application6for6Employer6Identification6Number6(EIN)
Accounting6equation6(Balance6Sheet)6-6ans--Assets6=6Liabilities6+6Capital
Assets6-6Liabilities6=6(Shareholders'6or6Owners'6Equity)
Asset6(Debit6or6Credit6Normal6Balance?)6-6ans--Debit
Expense6(Debit6or6Credit6Normal6Balance?)6-6ans--Debit
Liability6(Debit6or6Credit6Normal6Balance?)6-6ans--Credit
Capital6(Debit6or6Credit6Normal6Balance?)6-6ans--Credit
,Owners6Equity6(Debit6or6Credit6Normal6Balance?)6-6ans--Credit
Revenue6(Debit6or6Credit6Normal6Balance?)6-6ans--Credit
Escheat6laws6-6ans--
Refer6to6unclaimed6property6obligations.6Companies6who6issue6checks-
for6wages,6payroll,6employee6commissions,6returnable6garnishments,6deferred6compens
ation,6payroll6services6or6bonuseshave6a6potential6(and6probable)6unclaimed6property6ob
ligation.
Schedule6D6(Form6941)6-6ans--
to6explain6certain6discrepancies6(caused6by6acquisitions,6statutory6mergers,6and6consoli
dations)6between6Forms6W-
2,6Wage6and6Tax6Statement6(Copy6A),6and6Forms6941,6Employer's6QUARTERLY6Feder
al6Tax6Return,6for6the6totals6of6social6security6wages,6Medicare6wages6and6tips,6social6se
curity6tips,6federal6income6tax6withheld,6and6advance6earned6income6credit6(EIC)6payme
nts
Workweek6for6146and615-year-olds6-6ans--
Outside6school6hours,6and6on6school6days6including6Fridays,6no6more6than636hours.
No6more6than686hours6on6a6non-school6day.
When6school6is6in6session,6no6more6than6186hours6per6week.
No6more6than6406hours6during6a6week6when6school6is6out.
Between6the6hours6of676a.m.6And676p.m,6extended6to696p.m.6Between6June616and6Labor6
Day.
1)6Which6form6is6used6for6Determination6of6Employee6Work6Status6for6Purposes6of6Fede
ral6Employment6Taxes6and6Income6Tax6Withholding?6
A.6Form6I-96
B.6Form6SS-46
C.6Form6SS-56
D.6Form6SS-86-6ans--D
2)6What6amount6must6an6independent6contractor6be6paid6for6services6rendered6before6a
n6employer6is6obligated6to6give6them6a61099-MISC?6
A.6Once6total6reaches6$6006or6more6
B.6Total6payments6reach6$6006or6more6for6company's6fiscal6year6
C.6Total6payments6reach6$6006or6more6for6calendar6year6
D.6Any6individual6payment6makes6during6calendar6year6exceeding6$6006-6ans--C
3)6Qualified6real6estate6agents6and6direct6sellers6are6which6of6the6following?6
A.6Statutory6Employees6
B.6Statutory6Nonemployees6
C.6Employees6
D.6Independent6Contractors6-6ans--B
,4)6Under6the6common6law6test,6the6IRS6examiners6are6to6group6the6evidence6they6gathe
r6into6three6general6types6or6"categories"6Which6of6the6following6is6not6one6of6them?6
A.6Behavioral6control6
B.6Financial6control6
C.6Location6of6work6
D.6Relationship6of6the6parties6-6ans--C
5)6Which6of6the6following6is6not6regulated6by6the6FLSA?6
A.6Child6labor6
B.6Overtime6pay6
C.6Minimum6Wage6Rates6
D.686hour6work6day6-6ans--D
6)6Agent-drivers,6commission-drivers6and6full-
time6life6insurance6salespersons6are6which6of6the6following?6
A.6Statutory6Employees6
B.6Statutory6Nonemployees6
C.6Employees6
D.6Independent6Contractors6-6ans--A
7)6There6are6three6parts6of6the6ABC6test,6which6is6not6one6of6them?6
A.6Business-unusual6and/6or6away6
B.6Risk6of6loss6
C.6Customarily6independent6contractor6
D.6Absence6of6control6-6ans--B
8)6Under6the6federal6new6hire6reporting6requirement6how6many6days6does6an6employer6
have6after6hire6date?6
A.6106days6
B.6206days6
C.6306days6
D.6406days6-6ans--B
9)6What6is6Form6I-96used6for?6
A.6Application6for6Employer6Identification6Number6
B.6Determination6of6Employee6Work6Status6
C.6Application6for6IRS6Individual6Taxpayer6
D.6Employment6Eligibility6Verification6-6ans--D
10)6Under6the6reasonable6basis6test,6which6of6the6following6does6not6support6an6employ
er's6treatment6of6a6worker6as6an6independent6contractor?6
A.6Past6IRS6employment6tax6audit6
B.6Published6IRS6rulings6
C.6Place6of6work6
D.6Private6letter6rulings6-6ans--C
, 11)6What6does6FLSA6stand6for?6
A.6Federal6Labor6Standards6Act6
B.6Fair6Labor6Standards6Act6
C.6Federal6Labor6Standards6Agency6
D.6Fair6Labor6Standards6Agency6-6ans--B
12)6Which6of6the6following6is6not6covered6under6the6FLSA?6
A.6Regulate6how6often6employees6must6be6paid6
B.6Mandates6equal6pay6for6equal6work6
C.6Requires6recordkeeping6by6employers6
D.6sets6the6minimum6wage6and6overtime6rates6employees6must6receive6for6their6work6-
6ans--A
13)6Who6enforces6the6Federal6Wage-Hour6Law?6
A.6Individual6States6
B.6IRS6
C.6EEOC6
D.6DOL6-6ans--D
14)6Who6enforces6the6equal6pay6provisions?6
A.6Individual6States6
B.6IRS6
C.6EEOC6
D.6DOL6-6ans--C
15)6Which6is6not6one6of6the6White6Collar6Exemption?6
A.6Administrative6
B.6Executive6
C.6Management6
D.6Professional6employees6-6ans--C
16)6For6overtime6pay6Which6one6is6included6in6the6regular6rate?6
A.6Discretionary6bonuses6
B.6Nondiscretionary6bonuses6
C.6Gifts6
D.6Reimbursed6expenses6-6ans--B
17)6For6calculation6of6overtime6pay6Which6one6is6not6included6in6the6regular6rate?6
A.6Supplemental6disability6payments6
B.6On-call6pay6
C.6Retroactive6pay6
D.6Vacation6pay6-6ans--D
18)6A6computer6professional6must6be6paid6at6least6what6per6hour6to6be6exempt6from6over
time6requirements6under6the6FLSA?6
PROFESSIONAL APA MASTER EXAM
PRACTICE QUESTIONS AND ANSWERS
Form6SS-86-6ans--
Determination6of6Worker6Status6for6Purposes6of6Federal6Employment6Taxes6and6Incom
e6Tax6Withholding
Form6W-96-6ans--
First,6it6is6used6by6third6parties6to6collect6identifying6information6to6help6file6information6re
turns6with6the6IRS.
The6form6is6never6actually6sent6to6the6IRS,6but6is6maintained6by6the6person6who6files6the6
information6return6for6verification6purposes.6
The6information6on6the6Form6W-96and6the6payment6made6are6reported6on6a6Form61099.
The6second6purpose6is6to6help6the6payee6avoid6backup6withholding.6The6payer6must6coll
ect6withholding6taxes6on6certain6reportable6payments6for6the6IRS.6However,6if6the6payee6
certifies6on6the6W-
96they6are6not6subject6to6backup6withholding6they6generally6receive6the6full6payment6due
6them6from6the6payer.6This6is6similar6to6the6withholding6exemptions6certifications6found6o
n6Form6W-46for6employees.
Form6SS-56-6ans--Apply6for6an6original6Social6Security6card
Apply6for6a6replacement6Social6Security6card
Change6or6correct6information6on6your6Social6Security6number6record
Form6SS-46-6ans--Application6for6Employer6Identification6Number6(EIN)
Accounting6equation6(Balance6Sheet)6-6ans--Assets6=6Liabilities6+6Capital
Assets6-6Liabilities6=6(Shareholders'6or6Owners'6Equity)
Asset6(Debit6or6Credit6Normal6Balance?)6-6ans--Debit
Expense6(Debit6or6Credit6Normal6Balance?)6-6ans--Debit
Liability6(Debit6or6Credit6Normal6Balance?)6-6ans--Credit
Capital6(Debit6or6Credit6Normal6Balance?)6-6ans--Credit
,Owners6Equity6(Debit6or6Credit6Normal6Balance?)6-6ans--Credit
Revenue6(Debit6or6Credit6Normal6Balance?)6-6ans--Credit
Escheat6laws6-6ans--
Refer6to6unclaimed6property6obligations.6Companies6who6issue6checks-
for6wages,6payroll,6employee6commissions,6returnable6garnishments,6deferred6compens
ation,6payroll6services6or6bonuseshave6a6potential6(and6probable)6unclaimed6property6ob
ligation.
Schedule6D6(Form6941)6-6ans--
to6explain6certain6discrepancies6(caused6by6acquisitions,6statutory6mergers,6and6consoli
dations)6between6Forms6W-
2,6Wage6and6Tax6Statement6(Copy6A),6and6Forms6941,6Employer's6QUARTERLY6Feder
al6Tax6Return,6for6the6totals6of6social6security6wages,6Medicare6wages6and6tips,6social6se
curity6tips,6federal6income6tax6withheld,6and6advance6earned6income6credit6(EIC)6payme
nts
Workweek6for6146and615-year-olds6-6ans--
Outside6school6hours,6and6on6school6days6including6Fridays,6no6more6than636hours.
No6more6than686hours6on6a6non-school6day.
When6school6is6in6session,6no6more6than6186hours6per6week.
No6more6than6406hours6during6a6week6when6school6is6out.
Between6the6hours6of676a.m.6And676p.m,6extended6to696p.m.6Between6June616and6Labor6
Day.
1)6Which6form6is6used6for6Determination6of6Employee6Work6Status6for6Purposes6of6Fede
ral6Employment6Taxes6and6Income6Tax6Withholding?6
A.6Form6I-96
B.6Form6SS-46
C.6Form6SS-56
D.6Form6SS-86-6ans--D
2)6What6amount6must6an6independent6contractor6be6paid6for6services6rendered6before6a
n6employer6is6obligated6to6give6them6a61099-MISC?6
A.6Once6total6reaches6$6006or6more6
B.6Total6payments6reach6$6006or6more6for6company's6fiscal6year6
C.6Total6payments6reach6$6006or6more6for6calendar6year6
D.6Any6individual6payment6makes6during6calendar6year6exceeding6$6006-6ans--C
3)6Qualified6real6estate6agents6and6direct6sellers6are6which6of6the6following?6
A.6Statutory6Employees6
B.6Statutory6Nonemployees6
C.6Employees6
D.6Independent6Contractors6-6ans--B
,4)6Under6the6common6law6test,6the6IRS6examiners6are6to6group6the6evidence6they6gathe
r6into6three6general6types6or6"categories"6Which6of6the6following6is6not6one6of6them?6
A.6Behavioral6control6
B.6Financial6control6
C.6Location6of6work6
D.6Relationship6of6the6parties6-6ans--C
5)6Which6of6the6following6is6not6regulated6by6the6FLSA?6
A.6Child6labor6
B.6Overtime6pay6
C.6Minimum6Wage6Rates6
D.686hour6work6day6-6ans--D
6)6Agent-drivers,6commission-drivers6and6full-
time6life6insurance6salespersons6are6which6of6the6following?6
A.6Statutory6Employees6
B.6Statutory6Nonemployees6
C.6Employees6
D.6Independent6Contractors6-6ans--A
7)6There6are6three6parts6of6the6ABC6test,6which6is6not6one6of6them?6
A.6Business-unusual6and/6or6away6
B.6Risk6of6loss6
C.6Customarily6independent6contractor6
D.6Absence6of6control6-6ans--B
8)6Under6the6federal6new6hire6reporting6requirement6how6many6days6does6an6employer6
have6after6hire6date?6
A.6106days6
B.6206days6
C.6306days6
D.6406days6-6ans--B
9)6What6is6Form6I-96used6for?6
A.6Application6for6Employer6Identification6Number6
B.6Determination6of6Employee6Work6Status6
C.6Application6for6IRS6Individual6Taxpayer6
D.6Employment6Eligibility6Verification6-6ans--D
10)6Under6the6reasonable6basis6test,6which6of6the6following6does6not6support6an6employ
er's6treatment6of6a6worker6as6an6independent6contractor?6
A.6Past6IRS6employment6tax6audit6
B.6Published6IRS6rulings6
C.6Place6of6work6
D.6Private6letter6rulings6-6ans--C
, 11)6What6does6FLSA6stand6for?6
A.6Federal6Labor6Standards6Act6
B.6Fair6Labor6Standards6Act6
C.6Federal6Labor6Standards6Agency6
D.6Fair6Labor6Standards6Agency6-6ans--B
12)6Which6of6the6following6is6not6covered6under6the6FLSA?6
A.6Regulate6how6often6employees6must6be6paid6
B.6Mandates6equal6pay6for6equal6work6
C.6Requires6recordkeeping6by6employers6
D.6sets6the6minimum6wage6and6overtime6rates6employees6must6receive6for6their6work6-
6ans--A
13)6Who6enforces6the6Federal6Wage-Hour6Law?6
A.6Individual6States6
B.6IRS6
C.6EEOC6
D.6DOL6-6ans--D
14)6Who6enforces6the6equal6pay6provisions?6
A.6Individual6States6
B.6IRS6
C.6EEOC6
D.6DOL6-6ans--C
15)6Which6is6not6one6of6the6White6Collar6Exemption?6
A.6Administrative6
B.6Executive6
C.6Management6
D.6Professional6employees6-6ans--C
16)6For6overtime6pay6Which6one6is6included6in6the6regular6rate?6
A.6Discretionary6bonuses6
B.6Nondiscretionary6bonuses6
C.6Gifts6
D.6Reimbursed6expenses6-6ans--B
17)6For6calculation6of6overtime6pay6Which6one6is6not6included6in6the6regular6rate?6
A.6Supplemental6disability6payments6
B.6On-call6pay6
C.6Retroactive6pay6
D.6Vacation6pay6-6ans--D
18)6A6computer6professional6must6be6paid6at6least6what6per6hour6to6be6exempt6from6over
time6requirements6under6the6FLSA?6
