CERTIFIED PAYROLL PROFESSIONAL
(CPP) PRACTICE EXAM 1 QUESTIONS
AND CORRECT ANSWERS (VERIFIED
ANSWERS) PLUS RATIONALES 2025
1. Which federal agency administers the Fair Labor Standards Act (FLSA)?
A) Equal Employment Opportunity Commission (EEOC)
B) Department of Labor (DOL)
C) Internal Revenue Service (IRS)
D) Occupational Safety and Health Administration (OSHA)
Rationale: The Department of Labor (DOL) is responsible for enforcing the FLSA,
which governs minimum wage, overtime, and child labor laws.
2. What is the maximum number of days an employer must retain payroll
records under the Fair Labor Standards Act (FLSA)?
A) 2 years
B) 3 years
,C) 4 years
D) 5 years
Rationale: The FLSA requires employers to retain payroll records for at least 3
years and time cards for 2 years. Since payroll records include multiple
documents, the general retention period is 4 years.
3. Which form must an employer provide to an employee at the time of hiring?
A) W-2
B) Form I-9
C) 1099-MISC
D) W-4
Rationale: The Form I-9 verifies an employee’s eligibility to work in the U.S. It
must be completed at hire.
4. Under the FLSA, which employees are exempt from overtime?
A) Hourly employees paid over $455/week
B) Executive, administrative, and professional employees meeting specific tests
C) All salaried employees
D) Employees working less than 40 hours per week
Rationale: The FLSA exempts certain white-collar employees who meet salary and
duties tests.
5. What is the federal minimum wage as of 2025?
, A) $7.25 per hour
B) $8.50 per hour
C) $7.25 per hour
D) $10.00 per hour
Rationale: The federal minimum wage has been $7.25 per hour since 2009, unless
states mandate higher rates.
6. Which form reports an employee’s annual wages and taxes withheld?
A) W-4
B) 1099
C) W-2
D) 941
Rationale: Form W-2 reports wages paid and taxes withheld annually.
7. When must a W-2 form be provided to an employee?
A) January 15
B) February 1
C) January 31
D) March 15
Rationale: Employers must provide W-2 forms to employees by January 31
following the close of the tax year.
(CPP) PRACTICE EXAM 1 QUESTIONS
AND CORRECT ANSWERS (VERIFIED
ANSWERS) PLUS RATIONALES 2025
1. Which federal agency administers the Fair Labor Standards Act (FLSA)?
A) Equal Employment Opportunity Commission (EEOC)
B) Department of Labor (DOL)
C) Internal Revenue Service (IRS)
D) Occupational Safety and Health Administration (OSHA)
Rationale: The Department of Labor (DOL) is responsible for enforcing the FLSA,
which governs minimum wage, overtime, and child labor laws.
2. What is the maximum number of days an employer must retain payroll
records under the Fair Labor Standards Act (FLSA)?
A) 2 years
B) 3 years
,C) 4 years
D) 5 years
Rationale: The FLSA requires employers to retain payroll records for at least 3
years and time cards for 2 years. Since payroll records include multiple
documents, the general retention period is 4 years.
3. Which form must an employer provide to an employee at the time of hiring?
A) W-2
B) Form I-9
C) 1099-MISC
D) W-4
Rationale: The Form I-9 verifies an employee’s eligibility to work in the U.S. It
must be completed at hire.
4. Under the FLSA, which employees are exempt from overtime?
A) Hourly employees paid over $455/week
B) Executive, administrative, and professional employees meeting specific tests
C) All salaried employees
D) Employees working less than 40 hours per week
Rationale: The FLSA exempts certain white-collar employees who meet salary and
duties tests.
5. What is the federal minimum wage as of 2025?
, A) $7.25 per hour
B) $8.50 per hour
C) $7.25 per hour
D) $10.00 per hour
Rationale: The federal minimum wage has been $7.25 per hour since 2009, unless
states mandate higher rates.
6. Which form reports an employee’s annual wages and taxes withheld?
A) W-4
B) 1099
C) W-2
D) 941
Rationale: Form W-2 reports wages paid and taxes withheld annually.
7. When must a W-2 form be provided to an employee?
A) January 15
B) February 1
C) January 31
D) March 15
Rationale: Employers must provide W-2 forms to employees by January 31
following the close of the tax year.
