UPDATED 2024 CERTIFIED PAYROLL
PROFESSIONAL EXAM (CPP) PART 1
WITH ACCURATE ANSWERS
, UPDATED 2024 CERTIFIED PAYROLL
PROFESSIONAL EXAM (CPP) PART 1
WITH ACCURATE ANSWERS
SS4 - CORRECT ANSWERSUse Form SS-4 to apply for an employer identification number (EIN). An EIN is a
nine-digit number (for example, 12-3456789) assigned to employers, sole proprietors, corporations,
partnerships, estates, trusts, certain individuals, and other entities for tax filing and reporting purposes.
1094-B - CORRECT ANSWERSForm 1094-B is essentially a cover sheet used by insurance providers when
they send the Internal Revenue Service (IRS) information about who has health coverage that meets the
standards of the Affordable Care Act. The 1094-B is a brief form that takes up less than a page.
1094-C - CORRECT ANSWERSUpdated for Tax Year 2018. IRS Forms 1094-C and 1095-C are filed by
employers that are required to offer health insurance coverage to their employees under the Affordable
Care Act, also known as Obamacare.
1095-B - CORRECT ANSWERSForm 1095-B is a health insurance tax form which reports the type of
coverage you have, dependents covered by your insurance policy, and the period of coverage for the
prior year. This form is used to verify on your tax return that you and your dependents have at least
minimum qualifying health insurance coveragePayroll Concept Workers Status - CORRECT
ANSWERSForm SS8 is the IRS determination of EE or IC status. Reasonal Basis Test aka Safe Harbor Rules
Sec 530-Alls ee to be treated like a IC for specific reasons such as a court order, IRS audit results,
Attorney or CPA advisement, or long standing industry standard for that job role. Common Law Test- see
chart for example EE is required to comply with ER instructions about when where and how to work. IC
sets own hours determines own sequence of work. Form W9 request from ER on IC to supply FEIN or
SSN with Company Name. Backup Withholding- Some IC are required to withhold 24% of earnings this is
reported on Form 945. Statutory ees- not ees under the common law test but are treated like ees for tax
purposes. Ex. Agent or commission drivers, Full time life insurance sales people, home workers, and
traveling salespersons. Statutory Non-EEs- Qualify as ees nder common law test, but they are treated as
IC. No taxes w/h from pay. Ex: Real Estate agents, direct sellers. Income must be directly related to sales,
Income reported on 1099 Box 7 Non-EE comp.
FLSA - CORRECT ANSWERSFLSA - Sets min. wage.requires record keeping, places restrictions on types of
work minors can do. It DOES NOT govern vacation, sick, jury duty, holiday, lunch breaks. Freq of pay or
restrictions on hours required to work. This area is handled by state law. Federal Min Wage = 7.25 hour.
OT HOURS-- everything over 40 hours in the work week. Exempt ees must be paid at least $455 a week
salary or fee basis. Primary duties must consist of performing non manual or office work related to the
PROFESSIONAL EXAM (CPP) PART 1
WITH ACCURATE ANSWERS
, UPDATED 2024 CERTIFIED PAYROLL
PROFESSIONAL EXAM (CPP) PART 1
WITH ACCURATE ANSWERS
SS4 - CORRECT ANSWERSUse Form SS-4 to apply for an employer identification number (EIN). An EIN is a
nine-digit number (for example, 12-3456789) assigned to employers, sole proprietors, corporations,
partnerships, estates, trusts, certain individuals, and other entities for tax filing and reporting purposes.
1094-B - CORRECT ANSWERSForm 1094-B is essentially a cover sheet used by insurance providers when
they send the Internal Revenue Service (IRS) information about who has health coverage that meets the
standards of the Affordable Care Act. The 1094-B is a brief form that takes up less than a page.
1094-C - CORRECT ANSWERSUpdated for Tax Year 2018. IRS Forms 1094-C and 1095-C are filed by
employers that are required to offer health insurance coverage to their employees under the Affordable
Care Act, also known as Obamacare.
1095-B - CORRECT ANSWERSForm 1095-B is a health insurance tax form which reports the type of
coverage you have, dependents covered by your insurance policy, and the period of coverage for the
prior year. This form is used to verify on your tax return that you and your dependents have at least
minimum qualifying health insurance coveragePayroll Concept Workers Status - CORRECT
ANSWERSForm SS8 is the IRS determination of EE or IC status. Reasonal Basis Test aka Safe Harbor Rules
Sec 530-Alls ee to be treated like a IC for specific reasons such as a court order, IRS audit results,
Attorney or CPA advisement, or long standing industry standard for that job role. Common Law Test- see
chart for example EE is required to comply with ER instructions about when where and how to work. IC
sets own hours determines own sequence of work. Form W9 request from ER on IC to supply FEIN or
SSN with Company Name. Backup Withholding- Some IC are required to withhold 24% of earnings this is
reported on Form 945. Statutory ees- not ees under the common law test but are treated like ees for tax
purposes. Ex. Agent or commission drivers, Full time life insurance sales people, home workers, and
traveling salespersons. Statutory Non-EEs- Qualify as ees nder common law test, but they are treated as
IC. No taxes w/h from pay. Ex: Real Estate agents, direct sellers. Income must be directly related to sales,
Income reported on 1099 Box 7 Non-EE comp.
FLSA - CORRECT ANSWERSFLSA - Sets min. wage.requires record keeping, places restrictions on types of
work minors can do. It DOES NOT govern vacation, sick, jury duty, holiday, lunch breaks. Freq of pay or
restrictions on hours required to work. This area is handled by state law. Federal Min Wage = 7.25 hour.
OT HOURS-- everything over 40 hours in the work week. Exempt ees must be paid at least $455 a week
salary or fee basis. Primary duties must consist of performing non manual or office work related to the
