CPP Certified Payroll Professional
APA Master Exam Practice Questions
and Answers 100% Pass
Form SS-8 - ✔✔Determination of Worker Status for Purposes of Federal Employment
Taxes and Income Tax Withholding
Form W-9 - ✔✔First, it is used by third parties to collect identifying information to help
file information returns with the IRS.
The form is never actually sent to the IRS, but is maintained by the person who files the
information return for verification purposes.
The information on the Form W-9 and the payment made are reported on a Form 1099.
The second purpose is to help the payee avoid backup withholding. The payer must
collect withholding taxes on certain reportable payments for the IRS. However, if the
Katelyn Whitman, All Rights Reserved © 2025 1
,payee certifies on the W-9 they are not subject to backup withholding they generally
receive the full payment due them from the payer. This is similar to the withholding
exemptions certifications found on Form W-4 for employees.
Form SS-5 - ✔✔Apply for an original Social Security card
Apply for a replacement Social Security card
Change or correct information on your Social Security number record
Form SS-4 - ✔✔Application for Employer Identification Number (EIN)
Accounting equation (Balance Sheet) - ✔✔Assets = Liabilities + Capital
Assets - Liabilities = (Shareholders' or Owners' Equity)
Asset (Debit or Credit Normal Balance?) - ✔✔Debit
Expense (Debit or Credit Normal Balance?) - ✔✔Debit
Liability (Debit or Credit Normal Balance?) - ✔✔Credit
Capital (Debit or Credit Normal Balance?) - ✔✔Credit
Owners Equity (Debit or Credit Normal Balance?) - ✔✔Credit
Revenue (Debit or Credit Normal Balance?) - ✔✔Credit
Escheat laws - ✔✔Refer to unclaimed property obligations. Companies who issue
checks-for wages, payroll, employee commissions, returnable garnishments, deferred
Katelyn Whitman, All Rights Reserved © 2025 2
,compensation, payroll services or bonuseshave a potential (and probable) unclaimed
property obligation.
Schedule D (Form 941) - ✔✔to explain certain discrepancies (caused by acquisitions,
statutory mergers, and consolidations) between Forms W-2, Wage and Tax Statement
(Copy A), and Forms 941, Employer's QUARTERLY Federal Tax Return, for the totals of
social security wages, Medicare wages and tips, social security tips, federal income tax
withheld, and advance earned income credit (EIC) payments
Workweek for 14 and 15-year-olds - ✔✔Outside school hours, and on school days
including Fridays, no more than 3 hours.
No more than 8 hours on a non-school day.
When school is in session, no more than 18 hours per week.
No more than 40 hours during a week when school is out.
Between the hours of 7 a.m. And 7 p.m, extended to 9 p.m. Between June 1 and Labor
Day.
1) Which form is used for Determination of Employee Work Status for Purposes of
Federal Employment Taxes and Income Tax Withholding?
A. Form I-9
B. Form SS-4
Katelyn Whitman, All Rights Reserved © 2025 3
, C. Form SS-5
D. Form SS-8 - ✔✔D
2) What amount must an independent contractor be paid for services rendered before
an employer is obligated to give them a 1099-MISC?
A. Once total reaches $600 or more
B. Total payments reach $600 or more for company's fiscal year
C. Total payments reach $600 or more for calendar year
D. Any individual payment makes during calendar year exceeding $600 - ✔✔C
3) Qualified real estate agents and direct sellers are which of the following?
A. Statutory Employees
B. Statutory Nonemployees
C. Employees
D. Independent Contractors - ✔✔B
4) Under the common law test, the IRS examiners are to group the evidence they gather
into three general types or "categories" Which of the following is not one of them?
A. Behavioral control
B. Financial control
Katelyn Whitman, All Rights Reserved © 2025 4
APA Master Exam Practice Questions
and Answers 100% Pass
Form SS-8 - ✔✔Determination of Worker Status for Purposes of Federal Employment
Taxes and Income Tax Withholding
Form W-9 - ✔✔First, it is used by third parties to collect identifying information to help
file information returns with the IRS.
The form is never actually sent to the IRS, but is maintained by the person who files the
information return for verification purposes.
The information on the Form W-9 and the payment made are reported on a Form 1099.
The second purpose is to help the payee avoid backup withholding. The payer must
collect withholding taxes on certain reportable payments for the IRS. However, if the
Katelyn Whitman, All Rights Reserved © 2025 1
,payee certifies on the W-9 they are not subject to backup withholding they generally
receive the full payment due them from the payer. This is similar to the withholding
exemptions certifications found on Form W-4 for employees.
Form SS-5 - ✔✔Apply for an original Social Security card
Apply for a replacement Social Security card
Change or correct information on your Social Security number record
Form SS-4 - ✔✔Application for Employer Identification Number (EIN)
Accounting equation (Balance Sheet) - ✔✔Assets = Liabilities + Capital
Assets - Liabilities = (Shareholders' or Owners' Equity)
Asset (Debit or Credit Normal Balance?) - ✔✔Debit
Expense (Debit or Credit Normal Balance?) - ✔✔Debit
Liability (Debit or Credit Normal Balance?) - ✔✔Credit
Capital (Debit or Credit Normal Balance?) - ✔✔Credit
Owners Equity (Debit or Credit Normal Balance?) - ✔✔Credit
Revenue (Debit or Credit Normal Balance?) - ✔✔Credit
Escheat laws - ✔✔Refer to unclaimed property obligations. Companies who issue
checks-for wages, payroll, employee commissions, returnable garnishments, deferred
Katelyn Whitman, All Rights Reserved © 2025 2
,compensation, payroll services or bonuseshave a potential (and probable) unclaimed
property obligation.
Schedule D (Form 941) - ✔✔to explain certain discrepancies (caused by acquisitions,
statutory mergers, and consolidations) between Forms W-2, Wage and Tax Statement
(Copy A), and Forms 941, Employer's QUARTERLY Federal Tax Return, for the totals of
social security wages, Medicare wages and tips, social security tips, federal income tax
withheld, and advance earned income credit (EIC) payments
Workweek for 14 and 15-year-olds - ✔✔Outside school hours, and on school days
including Fridays, no more than 3 hours.
No more than 8 hours on a non-school day.
When school is in session, no more than 18 hours per week.
No more than 40 hours during a week when school is out.
Between the hours of 7 a.m. And 7 p.m, extended to 9 p.m. Between June 1 and Labor
Day.
1) Which form is used for Determination of Employee Work Status for Purposes of
Federal Employment Taxes and Income Tax Withholding?
A. Form I-9
B. Form SS-4
Katelyn Whitman, All Rights Reserved © 2025 3
, C. Form SS-5
D. Form SS-8 - ✔✔D
2) What amount must an independent contractor be paid for services rendered before
an employer is obligated to give them a 1099-MISC?
A. Once total reaches $600 or more
B. Total payments reach $600 or more for company's fiscal year
C. Total payments reach $600 or more for calendar year
D. Any individual payment makes during calendar year exceeding $600 - ✔✔C
3) Qualified real estate agents and direct sellers are which of the following?
A. Statutory Employees
B. Statutory Nonemployees
C. Employees
D. Independent Contractors - ✔✔B
4) Under the common law test, the IRS examiners are to group the evidence they gather
into three general types or "categories" Which of the following is not one of them?
A. Behavioral control
B. Financial control
Katelyn Whitman, All Rights Reserved © 2025 4
