CPP Certified Payroll Professional APA Master
Practice Questions Answered
1: What is the primary purpose of the Fair Labor Standards Act (FLSA)?---
correct answer ---
The primary purpose of the FLSA is to establish minimum wage, overtime
pay eligibility, recordkeeping, and child labor standards affecting full-time
and part-time workers in the private sector and in federal, state, and local
governments.
2: What form is used by employees to determine their federal income tax
withholding?--- correct answer ---
Employees use Form W-4 to determine their federal income tax
withholding.
3: What does FICA stand for, and what are its components?--- correct answer
---
FICA stands for the Federal Insurance Contributions Act, and its components
are Social Security and Medicare taxes.
,4: What is the current federal minimum wage in the United States as of
2023?--- correct answer --- As of 2023, the federal minimum wage in the
United States is $7.25 per hour.
5: How often must employers file Form 941?--- correct answer --- Employers
must file Form 941 quarterly.
6: What is the purpose of Form 940?--- correct answer ---
Form 940 is used to report annual Federal Unemployment Tax Act (FUTA)
tax.
7: What is the difference between exempt and non-exempt employees under
the FLSA?--- correct answer ---
Exempt employees are not entitled to overtime pay under the FLSA, while
non-exempt employees are eligible for overtime pay.
8: What is the purpose of a payroll audit?--- correct answer ---
, The purpose of a payroll audit is to ensure compliance with payroll laws and
regulations, verify accuracy in payroll processing, and identify any
discrepancies or areas for improvement.
9: What is the role of the American Payroll Association (APA)?--- correct
answer ---
The role of the APA is to provide education, training, and resources for
payroll professionals, as well as to advocate for the payroll industry.
10: What is a garnishment, and how does it affect payroll?--- correct answer
---
A garnishment is a legal procedure through which a portion of an employees
earnings is withheld by the employer for the payment of a debt, such as
child support or tax levies.
11: What is the purpose of Form W-2?--- correct answer ---
Form W-2 is used to report wages paid to employees and the taxes withheld
from them during the calendar year.
Practice Questions Answered
1: What is the primary purpose of the Fair Labor Standards Act (FLSA)?---
correct answer ---
The primary purpose of the FLSA is to establish minimum wage, overtime
pay eligibility, recordkeeping, and child labor standards affecting full-time
and part-time workers in the private sector and in federal, state, and local
governments.
2: What form is used by employees to determine their federal income tax
withholding?--- correct answer ---
Employees use Form W-4 to determine their federal income tax
withholding.
3: What does FICA stand for, and what are its components?--- correct answer
---
FICA stands for the Federal Insurance Contributions Act, and its components
are Social Security and Medicare taxes.
,4: What is the current federal minimum wage in the United States as of
2023?--- correct answer --- As of 2023, the federal minimum wage in the
United States is $7.25 per hour.
5: How often must employers file Form 941?--- correct answer --- Employers
must file Form 941 quarterly.
6: What is the purpose of Form 940?--- correct answer ---
Form 940 is used to report annual Federal Unemployment Tax Act (FUTA)
tax.
7: What is the difference between exempt and non-exempt employees under
the FLSA?--- correct answer ---
Exempt employees are not entitled to overtime pay under the FLSA, while
non-exempt employees are eligible for overtime pay.
8: What is the purpose of a payroll audit?--- correct answer ---
, The purpose of a payroll audit is to ensure compliance with payroll laws and
regulations, verify accuracy in payroll processing, and identify any
discrepancies or areas for improvement.
9: What is the role of the American Payroll Association (APA)?--- correct
answer ---
The role of the APA is to provide education, training, and resources for
payroll professionals, as well as to advocate for the payroll industry.
10: What is a garnishment, and how does it affect payroll?--- correct answer
---
A garnishment is a legal procedure through which a portion of an employees
earnings is withheld by the employer for the payment of a debt, such as
child support or tax levies.
11: What is the purpose of Form W-2?--- correct answer ---
Form W-2 is used to report wages paid to employees and the taxes withheld
from them during the calendar year.
