Certified Payroll Professional Exam
(CPP) Part 2 Questions and Answers
Knowledge of USCIS requirements - ANSWER-General requirements for
naturalization are below. Be at least 18 years old at the time of filing Form N-400,
Application for Naturalization. Be a permanent resident (have a "Green Card") for at
least 5 years. Show that you have lived for at least 3 months in the state or USCIS
district where you apply.
Knowledge of USCIS penalties - ANSWER-Monetary penalties for knowingly hire
and continuing to employ violations range from $375 to $16,000 per violation, with
repeat offenders receiving penalties, at the higher end. Penalties for substantive
violations, which includes failing to produce a Form I-9, range from $110 to $1,100
per violation
Knowledge of totalization agreements - ANSWER-Totalization Agreements. ... A
totalization agreement eliminates double taxation that may occur where earnings are
subject to the social security taxes of multiple jurisdictions. A totalization agreement
also provides benefit protections for workers dividing their careers between the U.S.
and other countries.
Knowledge of third-party sick pay requirements - ANSWER-Third party sick pay is an
insurance disability benefit (payment) that provides benefits to employees in place of
lost wages due to absences caused by an illness or non work related injury. These
payments are made to covered employees under a plan that is set up for
participating employers.
Knowledge of the E-Verify program - ANSWER-Homeland security site to check
employment eligibility in the US
Knowledge of tax treaty benefits and limitations - ANSWER-In order to qualify for
benefits under an income tax treaty, a foreign person must satisfy the limitation on
benefits("LOB") article of the treaty. LOB provisions are aimed at eliminating treaty
shopping. ... It would simply certify that it satisfied at least one of the LOB provisions
in the relevant treaty.
Knowledge of tax deposit methods (e.g., electronic) - ANSWER-EFT, EFW, Same
Day Wire, Check or MO, Cash
Knowledge of tax deposit frequency - ANSWER-monthly or semi weekly
Knowledge of supplemental wages - ANSWER-bonus, commissions, severance. Tax
rate is 22%
Knowledge of Schedule B reporting/filing requirements - ANSWER-Use Schedule B
(Form 1040) if any of the following applies:You had over $1,500 of taxable interest or
, ordinary dividends.You received interest from a seller-financed mortgage and the
buyer used the property as a personal residence.You have accrued interest from a
bond.You are reporting original issue discount (OID) in an amount less than the
amount shown on Form 1099-OID.You are reducing your interest income on a bond
by the amount of amortizable bond premium.You are claiming the exclusion of
interest from series EE or I U.S. savings bonds issued after 1989.
Knowledge of Resident and nonresident alien taxation - ANSWER-If you are an alien
(not a U.S. citizen), you are considered a nonresident alien unless you meet one of
two tests. You are a resident alien of the United States for tax purposes if you meet
either the green card test or the substantial presence test for the calendar year
(January 1-December 31).Certain rules exist for determining the Residency Starting
and Ending Dates for aliens.In some cases aliens are allowed to make elections
which override the green card test and the substantial presence test, as
follows:Nonresident Spouse Treated as a ResidentCloser Connection To a Foreign
CountryTax TreatiesYou can be both a nonresident alien and a resident alien during
the same tax year. This usually occurs in the year you arrive or depart from the
United States. If so, you may elect to be treated as a Dual Status Alien for this
taxable year and a Resident Alien for the next taxable year if you meet certain tests.
(Refer to section "Dual-Status Aliens" - "First Year Choice" in Publication 519, U.S.
Tax Guide for Aliens.)A resident alien who is required to establish his/her U.S.
residency for the purpose of claiming a tax treaty benefit with a foreign country
should refer to Certification of U.S. Residency for Tax Treaty Purposes.
Knowledge of requirements for filing multiple worksite reports and census reports -
ANSWER-Reports quarterly headcount and wage information to DOL
Knowledge of procedures when E-Verify identifies a tentative and final
nonconfirmation - ANSWER-follow instructions from Everify site
Knowledge of payroll processes for nonresident alien employees - ANSWER-
Nonresident employees are subject to special federal income tax rules. As a result,
different wage withholding rules designed to approximate the tax liability
ofnonresident aliens apply to their wages. Also, for policy reasons, some
nonresidentemployees are exempt from Social Security and Medicare (FICA) taxes.
Knowledge of options to verify social security numbers - ANSWER-SSA.org can
either do up to 10 for immediate results or 250,000 upload and SSA will let you
know.
Knowledge of non-tax deduction reporting (e.g. charitable contributions) - ANSWER-
You may deduct charitable contributions of money or property made to qualified
organizations if you itemize your deductions. Generally, you may deduct up to 50
percent of your adjusted gross income, but 20 percent and 30 percent limitations
apply in some cases
Knowledge of New Hire Reporting - ANSWER-State and federal laws require all
employers to report basic information on new and rehired employees within 20 days
of hire, some states require it sooner. Private sector employers report to the State
(CPP) Part 2 Questions and Answers
Knowledge of USCIS requirements - ANSWER-General requirements for
naturalization are below. Be at least 18 years old at the time of filing Form N-400,
Application for Naturalization. Be a permanent resident (have a "Green Card") for at
least 5 years. Show that you have lived for at least 3 months in the state or USCIS
district where you apply.
Knowledge of USCIS penalties - ANSWER-Monetary penalties for knowingly hire
and continuing to employ violations range from $375 to $16,000 per violation, with
repeat offenders receiving penalties, at the higher end. Penalties for substantive
violations, which includes failing to produce a Form I-9, range from $110 to $1,100
per violation
Knowledge of totalization agreements - ANSWER-Totalization Agreements. ... A
totalization agreement eliminates double taxation that may occur where earnings are
subject to the social security taxes of multiple jurisdictions. A totalization agreement
also provides benefit protections for workers dividing their careers between the U.S.
and other countries.
Knowledge of third-party sick pay requirements - ANSWER-Third party sick pay is an
insurance disability benefit (payment) that provides benefits to employees in place of
lost wages due to absences caused by an illness or non work related injury. These
payments are made to covered employees under a plan that is set up for
participating employers.
Knowledge of the E-Verify program - ANSWER-Homeland security site to check
employment eligibility in the US
Knowledge of tax treaty benefits and limitations - ANSWER-In order to qualify for
benefits under an income tax treaty, a foreign person must satisfy the limitation on
benefits("LOB") article of the treaty. LOB provisions are aimed at eliminating treaty
shopping. ... It would simply certify that it satisfied at least one of the LOB provisions
in the relevant treaty.
Knowledge of tax deposit methods (e.g., electronic) - ANSWER-EFT, EFW, Same
Day Wire, Check or MO, Cash
Knowledge of tax deposit frequency - ANSWER-monthly or semi weekly
Knowledge of supplemental wages - ANSWER-bonus, commissions, severance. Tax
rate is 22%
Knowledge of Schedule B reporting/filing requirements - ANSWER-Use Schedule B
(Form 1040) if any of the following applies:You had over $1,500 of taxable interest or
, ordinary dividends.You received interest from a seller-financed mortgage and the
buyer used the property as a personal residence.You have accrued interest from a
bond.You are reporting original issue discount (OID) in an amount less than the
amount shown on Form 1099-OID.You are reducing your interest income on a bond
by the amount of amortizable bond premium.You are claiming the exclusion of
interest from series EE or I U.S. savings bonds issued after 1989.
Knowledge of Resident and nonresident alien taxation - ANSWER-If you are an alien
(not a U.S. citizen), you are considered a nonresident alien unless you meet one of
two tests. You are a resident alien of the United States for tax purposes if you meet
either the green card test or the substantial presence test for the calendar year
(January 1-December 31).Certain rules exist for determining the Residency Starting
and Ending Dates for aliens.In some cases aliens are allowed to make elections
which override the green card test and the substantial presence test, as
follows:Nonresident Spouse Treated as a ResidentCloser Connection To a Foreign
CountryTax TreatiesYou can be both a nonresident alien and a resident alien during
the same tax year. This usually occurs in the year you arrive or depart from the
United States. If so, you may elect to be treated as a Dual Status Alien for this
taxable year and a Resident Alien for the next taxable year if you meet certain tests.
(Refer to section "Dual-Status Aliens" - "First Year Choice" in Publication 519, U.S.
Tax Guide for Aliens.)A resident alien who is required to establish his/her U.S.
residency for the purpose of claiming a tax treaty benefit with a foreign country
should refer to Certification of U.S. Residency for Tax Treaty Purposes.
Knowledge of requirements for filing multiple worksite reports and census reports -
ANSWER-Reports quarterly headcount and wage information to DOL
Knowledge of procedures when E-Verify identifies a tentative and final
nonconfirmation - ANSWER-follow instructions from Everify site
Knowledge of payroll processes for nonresident alien employees - ANSWER-
Nonresident employees are subject to special federal income tax rules. As a result,
different wage withholding rules designed to approximate the tax liability
ofnonresident aliens apply to their wages. Also, for policy reasons, some
nonresidentemployees are exempt from Social Security and Medicare (FICA) taxes.
Knowledge of options to verify social security numbers - ANSWER-SSA.org can
either do up to 10 for immediate results or 250,000 upload and SSA will let you
know.
Knowledge of non-tax deduction reporting (e.g. charitable contributions) - ANSWER-
You may deduct charitable contributions of money or property made to qualified
organizations if you itemize your deductions. Generally, you may deduct up to 50
percent of your adjusted gross income, but 20 percent and 30 percent limitations
apply in some cases
Knowledge of New Hire Reporting - ANSWER-State and federal laws require all
employers to report basic information on new and rehired employees within 20 days
of hire, some states require it sooner. Private sector employers report to the State
