CERTIFIED PAYROLL PROFESSIONAL
EXAM (CPP) PART 2
Topic6-6ans--Definition
Knowledge6of6workers'6compensation6regulations6-6ans--
Knowledge6of6federal6tax6levy6requirements6-6ans--
Knowledge6of6wage6attachment/
garnishment6rules6(e.g.,6Consumer6Credit6Protection6Act6-6Bankruptcy)6-6ans--
Knowledge6of6child6support6withholding6order6regulations6-6ans--
Knowledge6of6medical6support6order6regulations6-6ans--
Knowledge6of6wage6assignments6-6ans--
Knowledge6of6USCIS6requirements6-6ans--
General6requirements6for6naturalization6are6below.6Be6at6least6186years6old6at6the6time6o
f6filing6Form6N-
400,6Application6for6Naturalization.6Be6a6permanent6resident6(have6a6"Green6Card")6for6a
t6least656years.6Show6that6you6have6lived6for6at6least636months6in6the6state6or6USCIS6dist
rict6where6you6apply.
Knowledge6of6USCIS6penalties6-6ans--
Monetary6penalties6for6knowingly6hire6and6continuing6to6employ6violations6range6from6$3
756to6$16,0006per6violation,6with6repeat6offenders6receiving6penalties,6at6the6higher6end.6
Penalties6for6substantive6violations,6which6includes6failing6to6produce6a6Form6I-
9,6range6from6$1106to6$1,1006per6violation
Knowledge6of6totalization6agreements6-6ans--
Totalization6Agreements.6...6A6totalization6agreement6eliminates6double6taxation6that6ma
y6occur6where6earnings6are6subject6to6the6social6security6taxes6of6multiple6jurisdictions.6
A6totalization6agreement6also6provides6benefit6protections6for6workers6dividing6their6care
ers6between6the6U.S.6and6other6countries.
Knowledge6of6third-party6sick6pay6requirements6-6ans--
Third6party6sick6pay6is6an6insurance6disability6benefit6(payment)6that6provides6benefits6to
6employees6in6place6of6lost6wages6due6to6absences6caused6by6an6illness6or6non6work6rel
ated6injury.6These6payments6are6made6to6covered6employees6under6a6plan6that6is6set6up
6for6participating6employers.
, Knowledge6of6the6E-Verify6program6-6ans--
Homeland6security6site6to6check6employment6eligibility6in6the6US
Knowledge6of6tax6treaty6benefits6and6limitations6-6ans--
In6order6to6qualify6for6benefits6under6an6income6tax6treaty,6a6foreign6person6must6satisfy6t
he6limitation6on6benefits("LOB")6article6of6the6treaty.6LOB6provisions6are6aimed6at6elimin
ating6treaty6shopping.6...6It6would6simply6certify6that6it6satisfied6at6least6one6of6the6LOB6pr
ovisions6in6the6relevant6treaty.
Knowledge6of6tax6deposit6methods6(e.g.,6electronic)6-6ans--
EFT,6EFW,6Same6Day6Wire,6Check6or6MO,6Cash
Knowledge6of6tax6deposit6frequency6-6ans--monthly6or6semi6weekly
Knowledge6of6supplemental6wages6-6ans--
bonus,6commissions,6severance.6Tax6rate6is622%
Knowledge6of6Schedule6B6reporting/filing6requirements6-6ans--
Use6Schedule6B6(Form61040)6if6any6of6the6following6applies:You6had6over6$1,5006of6taxa
ble6interest6or6ordinary6dividends.You6received6interest6from6a6seller-
financed6mortgage6and6the6buyer6used6the6property6as6a6personal6residence.You6have6
accrued6interest6from6a6bond.You6are6reporting6original6issue6discount6(OID)6in6an6amou
nt6less6than6the6amount6shown6on6Form61099-
OID.You6are6reducing6your6interest6income6on6a6bond6by6the6amount6of6amortizable6bon
d6premium.You6are6claiming6the6exclusion6of6interest6from6series6EE6or6I6U.S.6savings6b
onds6issued6after61989.
Knowledge6of6Resident6and6nonresident6alien6taxation6-6ans--
If6you6are6an6alien6(not6a6U.S.6citizen),6you6are6considered6a6nonresident6alien6unless6yo
u6meet6one6of6two6tests.6You6are6a6resident6alien6of6the6United6States6for6tax6purposes6if
6you6meet6either6the6green6card6test6or6the6substantial6presence6test6for6the6calendar6ye
ar6(January61-
December631).Certain6rules6exist6for6determining6the6Residency6Starting6and6Ending6Da
tes6for6aliens.In6some6cases6aliens6are6allowed6to6make6elections6which6override6the6gre
en6card6test6and6the6substantial6presence6test,6as6follows:Nonresident6Spouse6Treated6
as6a6ResidentCloser6Connection6To6a6Foreign6CountryTax6TreatiesYou6can6be6both6a6n
onresident6alien6and6a6resident6alien6during6the6same6tax6year.6This6usually6occurs6in6th
e6year6you6arrive6or6depart6from6the6United6States.6If6so,6you6may6elect6to6be6treated6as6
a6Dual6Status6Alien6for6this6taxable6year6and6a6Resident6Alien6for6the6next6taxable6year6if
6you6meet6certain6tests.6(Refer6to6section6"Dual-Status6Aliens"6-
6"First6Year6Choice"6in6Publication6519,6U.S.6Tax6Guide6for6Aliens.)A6resident6alien6who6i
s6required6to6establish6his/
her6U.S.6residency6for6the6purpose6of6claiming6a6tax6treaty6benefit6with6a6foreign6country6
should6refer6to6Certification6of6U.S.6Residency6for6Tax6Treaty6Purposes.
EXAM (CPP) PART 2
Topic6-6ans--Definition
Knowledge6of6workers'6compensation6regulations6-6ans--
Knowledge6of6federal6tax6levy6requirements6-6ans--
Knowledge6of6wage6attachment/
garnishment6rules6(e.g.,6Consumer6Credit6Protection6Act6-6Bankruptcy)6-6ans--
Knowledge6of6child6support6withholding6order6regulations6-6ans--
Knowledge6of6medical6support6order6regulations6-6ans--
Knowledge6of6wage6assignments6-6ans--
Knowledge6of6USCIS6requirements6-6ans--
General6requirements6for6naturalization6are6below.6Be6at6least6186years6old6at6the6time6o
f6filing6Form6N-
400,6Application6for6Naturalization.6Be6a6permanent6resident6(have6a6"Green6Card")6for6a
t6least656years.6Show6that6you6have6lived6for6at6least636months6in6the6state6or6USCIS6dist
rict6where6you6apply.
Knowledge6of6USCIS6penalties6-6ans--
Monetary6penalties6for6knowingly6hire6and6continuing6to6employ6violations6range6from6$3
756to6$16,0006per6violation,6with6repeat6offenders6receiving6penalties,6at6the6higher6end.6
Penalties6for6substantive6violations,6which6includes6failing6to6produce6a6Form6I-
9,6range6from6$1106to6$1,1006per6violation
Knowledge6of6totalization6agreements6-6ans--
Totalization6Agreements.6...6A6totalization6agreement6eliminates6double6taxation6that6ma
y6occur6where6earnings6are6subject6to6the6social6security6taxes6of6multiple6jurisdictions.6
A6totalization6agreement6also6provides6benefit6protections6for6workers6dividing6their6care
ers6between6the6U.S.6and6other6countries.
Knowledge6of6third-party6sick6pay6requirements6-6ans--
Third6party6sick6pay6is6an6insurance6disability6benefit6(payment)6that6provides6benefits6to
6employees6in6place6of6lost6wages6due6to6absences6caused6by6an6illness6or6non6work6rel
ated6injury.6These6payments6are6made6to6covered6employees6under6a6plan6that6is6set6up
6for6participating6employers.
, Knowledge6of6the6E-Verify6program6-6ans--
Homeland6security6site6to6check6employment6eligibility6in6the6US
Knowledge6of6tax6treaty6benefits6and6limitations6-6ans--
In6order6to6qualify6for6benefits6under6an6income6tax6treaty,6a6foreign6person6must6satisfy6t
he6limitation6on6benefits("LOB")6article6of6the6treaty.6LOB6provisions6are6aimed6at6elimin
ating6treaty6shopping.6...6It6would6simply6certify6that6it6satisfied6at6least6one6of6the6LOB6pr
ovisions6in6the6relevant6treaty.
Knowledge6of6tax6deposit6methods6(e.g.,6electronic)6-6ans--
EFT,6EFW,6Same6Day6Wire,6Check6or6MO,6Cash
Knowledge6of6tax6deposit6frequency6-6ans--monthly6or6semi6weekly
Knowledge6of6supplemental6wages6-6ans--
bonus,6commissions,6severance.6Tax6rate6is622%
Knowledge6of6Schedule6B6reporting/filing6requirements6-6ans--
Use6Schedule6B6(Form61040)6if6any6of6the6following6applies:You6had6over6$1,5006of6taxa
ble6interest6or6ordinary6dividends.You6received6interest6from6a6seller-
financed6mortgage6and6the6buyer6used6the6property6as6a6personal6residence.You6have6
accrued6interest6from6a6bond.You6are6reporting6original6issue6discount6(OID)6in6an6amou
nt6less6than6the6amount6shown6on6Form61099-
OID.You6are6reducing6your6interest6income6on6a6bond6by6the6amount6of6amortizable6bon
d6premium.You6are6claiming6the6exclusion6of6interest6from6series6EE6or6I6U.S.6savings6b
onds6issued6after61989.
Knowledge6of6Resident6and6nonresident6alien6taxation6-6ans--
If6you6are6an6alien6(not6a6U.S.6citizen),6you6are6considered6a6nonresident6alien6unless6yo
u6meet6one6of6two6tests.6You6are6a6resident6alien6of6the6United6States6for6tax6purposes6if
6you6meet6either6the6green6card6test6or6the6substantial6presence6test6for6the6calendar6ye
ar6(January61-
December631).Certain6rules6exist6for6determining6the6Residency6Starting6and6Ending6Da
tes6for6aliens.In6some6cases6aliens6are6allowed6to6make6elections6which6override6the6gre
en6card6test6and6the6substantial6presence6test,6as6follows:Nonresident6Spouse6Treated6
as6a6ResidentCloser6Connection6To6a6Foreign6CountryTax6TreatiesYou6can6be6both6a6n
onresident6alien6and6a6resident6alien6during6the6same6tax6year.6This6usually6occurs6in6th
e6year6you6arrive6or6depart6from6the6United6States.6If6so,6you6may6elect6to6be6treated6as6
a6Dual6Status6Alien6for6this6taxable6year6and6a6Resident6Alien6for6the6next6taxable6year6if
6you6meet6certain6tests.6(Refer6to6section6"Dual-Status6Aliens"6-
6"First6Year6Choice"6in6Publication6519,6U.S.6Tax6Guide6for6Aliens.)A6resident6alien6who6i
s6required6to6establish6his/
her6U.S.6residency6for6the6purpose6of6claiming6a6tax6treaty6benefit6with6a6foreign6country6
should6refer6to6Certification6of6U.S.6Residency6for6Tax6Treaty6Purposes.
