THE PAYROLL SOURCE CPP FINAL AND
PRACTICE EXAM ACTUAL QUESTIONS AND
CORRECTLY WELL DEFINED ANSWERS
LATEST 2024 – 2025 ALREADY GRADED A+
An employee covered by group health insurance at the time his employment
terminates to return to school is entitled to COBRA continuation rights for:
A. 12 months
B. 18 months
C. 24 months
D. 30 months - ANSWERS-B. 18 months
How often are Form 940 taxable wages reported?
A. Annually
B. semi annually
,C. Quarterly
D. Monthly - ANSWERS-A. Annually
An employee claims married and two withholding allowances on her 2017 Form
W-4, is paid $1,700 biweekly, and defers $50 per pay period to a 401(k) plan.
Using the percentage method, what is the total of the biweekly deductions from
the employee's pay for federal income, social security and Medicare taxes?
A. $245.01
B. $252.51
C. $299.66
D. $114.96 - ANSWERS-A. $245.01
FIT: $1,700 - $50 = $1,650 - (2 x $155.80) - $1,050 = $288.40 x 15% + $71.70 =
$114.96
FICA: $1,700 x 7.65% = $130.05
$114.96 + $130.05 = $245.01
An employee earns $9 per hour and an additional 10 cents per hour for hours
worked after 7:00 p.m. If an employee works from 2:00p.m. to 11:00p.m., with an
unpaid meal break from 6:00 p.m. to 7:00p.m., Monday through Friday, what is
the employee's weekly gross pay under the Fair Labor Standards Act?
A. $360
B. $361
C. $362
,D. $364 - ANSWERS-C. $362 (40x$9)+(20x$.10)=$362
The BEST reason for tracking pay-related problem statistics is to enable Payroll to:
A. identify root causes and take actions to prevent similar recurrences
B. apologize to clients in a more professional manner
C. direct problems to those who caused the problem
D. justify more resources to handle more problems - ANSWERS-A. identify rout
caused and take actions to prevent similar recurrences
With regard to employees' reported tips, the employer must:
A. withhold and pay only the employees' portion of social security and Medicare
taxes on tips
B. report taxes on tips separately when making an employment tax deposit
C. report tips as wages on Form W-2 and pay the employer portion of social
security and Medicare taxes
D. report and pay the employer portion of social security and Medicare taxes on
the portion of cash tips above the federal minimum wage - ANSWERS-C. report
tips as wages on Form W-2 and pay the employer portion of social security and
Medicare taxes
Transactions are recorded in chronological order into books of original entry
called:
A. registers
B. vouchers
, C. invoices
D. journals - ANSWERS-D. journals
The KEY advantage of using an automated time and attendance system is that it:
A. identifies phantom employees
B. reduces errors
C. interfaces with the payroll system
D. frees supervisors from having to review hours - ANSWERS-B reduces errors
Which of the following is LEAST likely to be considered when looking at the
security of a new payroll system?
A. regular data back-up and storage
B. protection against computer viruses
C. limited system access
D. system edits - ANSWERS-D. system edits
Company deadlines for payroll data input documents are essential for:
A. timely processing of the payroll
B. accurate entry of data
C. guaranteeing that all information is processed
D. adequate auditing purposes - ANSWERS-A. timely processing of the payroll
PRACTICE EXAM ACTUAL QUESTIONS AND
CORRECTLY WELL DEFINED ANSWERS
LATEST 2024 – 2025 ALREADY GRADED A+
An employee covered by group health insurance at the time his employment
terminates to return to school is entitled to COBRA continuation rights for:
A. 12 months
B. 18 months
C. 24 months
D. 30 months - ANSWERS-B. 18 months
How often are Form 940 taxable wages reported?
A. Annually
B. semi annually
,C. Quarterly
D. Monthly - ANSWERS-A. Annually
An employee claims married and two withholding allowances on her 2017 Form
W-4, is paid $1,700 biweekly, and defers $50 per pay period to a 401(k) plan.
Using the percentage method, what is the total of the biweekly deductions from
the employee's pay for federal income, social security and Medicare taxes?
A. $245.01
B. $252.51
C. $299.66
D. $114.96 - ANSWERS-A. $245.01
FIT: $1,700 - $50 = $1,650 - (2 x $155.80) - $1,050 = $288.40 x 15% + $71.70 =
$114.96
FICA: $1,700 x 7.65% = $130.05
$114.96 + $130.05 = $245.01
An employee earns $9 per hour and an additional 10 cents per hour for hours
worked after 7:00 p.m. If an employee works from 2:00p.m. to 11:00p.m., with an
unpaid meal break from 6:00 p.m. to 7:00p.m., Monday through Friday, what is
the employee's weekly gross pay under the Fair Labor Standards Act?
A. $360
B. $361
C. $362
,D. $364 - ANSWERS-C. $362 (40x$9)+(20x$.10)=$362
The BEST reason for tracking pay-related problem statistics is to enable Payroll to:
A. identify root causes and take actions to prevent similar recurrences
B. apologize to clients in a more professional manner
C. direct problems to those who caused the problem
D. justify more resources to handle more problems - ANSWERS-A. identify rout
caused and take actions to prevent similar recurrences
With regard to employees' reported tips, the employer must:
A. withhold and pay only the employees' portion of social security and Medicare
taxes on tips
B. report taxes on tips separately when making an employment tax deposit
C. report tips as wages on Form W-2 and pay the employer portion of social
security and Medicare taxes
D. report and pay the employer portion of social security and Medicare taxes on
the portion of cash tips above the federal minimum wage - ANSWERS-C. report
tips as wages on Form W-2 and pay the employer portion of social security and
Medicare taxes
Transactions are recorded in chronological order into books of original entry
called:
A. registers
B. vouchers
, C. invoices
D. journals - ANSWERS-D. journals
The KEY advantage of using an automated time and attendance system is that it:
A. identifies phantom employees
B. reduces errors
C. interfaces with the payroll system
D. frees supervisors from having to review hours - ANSWERS-B reduces errors
Which of the following is LEAST likely to be considered when looking at the
security of a new payroll system?
A. regular data back-up and storage
B. protection against computer viruses
C. limited system access
D. system edits - ANSWERS-D. system edits
Company deadlines for payroll data input documents are essential for:
A. timely processing of the payroll
B. accurate entry of data
C. guaranteeing that all information is processed
D. adequate auditing purposes - ANSWERS-A. timely processing of the payroll
