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Exam (elaborations)

THE PAYROLL SOURCE CPP PRACTICE QUESTIONS WITH COMPLETE ANSWERS

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THE PAYROLL SOURCE CPP PRACTICE QUESTIONS WITH COMPLETE ANSWERS












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Uploaded on
April 12, 2025
Number of pages
33
Written in
2024/2025
Type
Exam (elaborations)
Contains
Questions & answers

Subjects

  • cpp

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From which of the following taxes are statutory workers' compensation payments
exempt?
a. FIT only
b. FICA only
c. FUTA only
d. FIT, FICA, and FUTA taxes


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, d. FIT, FICA, and FUTA taxes




An EE 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


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b. 18 months




A request for proposal (RFP) can be used to:
a. provide vendors with technical and functional system requirements
b. request funds during a budget process
c. analyze needs for the system
d. assign programming resources to enhance functionality


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a. provide vendors with technical and functional system requirements




Techniques for conducting periodic physical payouts:
a. are the same for all EEs
b. vary by whether the EE is paid by check or direct deposit

,c. vary for some EEs such as telecommuters
d. vary by wage class and compensation level


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a. are the same for all EEs




Which of the following authorities dictates the information provided on a payroll check
stub:
a. individual states
b. Federal Unemployment Tax Act
c. Federal Wage and Hour Division
d. Social Security Administration


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a. individual states




All of the following practices are acceptable to an external auditor EXCEPT:
a. the accounting dept reconciling the payroll checking account
b. the payroll supervisor verifying that deposits are made timely
c. storage of blank payroll checks in the payroll dept
d. the treasury dept being responsible for the signature of payroll checks


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c. storage of blank payroll checks in the payroll dept

, Which of the following features 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


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d. system edits




All of the following types of compensation are subject to social security tax EXCEPT:
a. tips under $100
b. deferred bonus
c. third-party sick pay up to $3,000
d. workers' compensation benefits


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d. WC benefits




The process of balancing multiple time sheets within a specified pay period utilizes a
procedure known as:
a. batch totaling
b. excepting reporting
c. system documentation
d. reconciliation


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