1|Page
CPP - CERTIFIED PAYROLL PROFESSIONAL EXAM NEWEST
2025/2026 ACTUAL EXAM WITH COMPLETE QUESTIONS AND
CORRECT DETAILED ANSWERS (100% VERIFIED ANSWERS)
|ALREADY GRADED A+| ||PROFESSOR VERIFIED||
Which of the following statements is true concerning group-term
life insurance provided to employees? - ANSWER-Employers are
not required to withhold federal income tax when the value of an
employee's group-term life insurance coverage is over
$50,000.00.
Which of the following statements is true regarding 401(k) plans?
- ANSWER-401(k) plan deferrals are not subject to federal income
tax when deferred
The foreign base housing amount is what percentage of the
foreign earned income exclusion? - ANSWER-16%
When an employee's YTD wages exceed the social security
maximum wage base ($160,200.00) but are less than
$200,000.00, what adjustment, if any, is made in the gross-up
formula? - ANSWER-The social security tax rate is not used
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Form 1042-S must be provided to the recipient by: - ANSWER-
March 15
A procedure that can be put into place in a one-person payroll
department to ensure adequate controls is to have: - ANSWER-A
list of employees paid provided to department heads
Which of the following employer-paid meals or lodging is taxable?
- ANSWER-Meals while moving from an old home to a new home
Which account is identified correctly? - ANSWER-Cost of
employee benefit programs - Expense
Which of the following types of compensation is taxable income? -
ANSWER-Back-pay awards
State unemployment taxes are used to fund: - ANSWER-
Unemployment benefits
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Which of the following employer-provided benefits is taxable? -
ANSWER-Personal use of company vehicle
Which of the following workers can be classified as an exempt
employee? - ANSWER-An executive assistant earning $1,129.00
each week exercising discretion while performing duties
When is Form 1042-S required to be provided to the IRS? -
ANSWER-March 15
Which of the following statements is true about §125 plans? -
ANSWER-Employer contributions taken as cash are taxable
compensation
An employee is injured on the job and is unable to work for three
months. During that time, the employee receives $3,100.00 of
workers' compensation paid by the state agency. The employer
uses the Wage Bracket Method and the employee claims Married
and two allowances on a 2019 Form W-4. Calculate the amount
of federal income tax that must be withheld for workers'
compensation payments. - ANSWER-$0.00
CPP - CERTIFIED PAYROLL PROFESSIONAL EXAM NEWEST
2025/2026 ACTUAL EXAM WITH COMPLETE QUESTIONS AND
CORRECT DETAILED ANSWERS (100% VERIFIED ANSWERS)
|ALREADY GRADED A+| ||PROFESSOR VERIFIED||
Which of the following statements is true concerning group-term
life insurance provided to employees? - ANSWER-Employers are
not required to withhold federal income tax when the value of an
employee's group-term life insurance coverage is over
$50,000.00.
Which of the following statements is true regarding 401(k) plans?
- ANSWER-401(k) plan deferrals are not subject to federal income
tax when deferred
The foreign base housing amount is what percentage of the
foreign earned income exclusion? - ANSWER-16%
When an employee's YTD wages exceed the social security
maximum wage base ($160,200.00) but are less than
$200,000.00, what adjustment, if any, is made in the gross-up
formula? - ANSWER-The social security tax rate is not used
,2|Page
Form 1042-S must be provided to the recipient by: - ANSWER-
March 15
A procedure that can be put into place in a one-person payroll
department to ensure adequate controls is to have: - ANSWER-A
list of employees paid provided to department heads
Which of the following employer-paid meals or lodging is taxable?
- ANSWER-Meals while moving from an old home to a new home
Which account is identified correctly? - ANSWER-Cost of
employee benefit programs - Expense
Which of the following types of compensation is taxable income? -
ANSWER-Back-pay awards
State unemployment taxes are used to fund: - ANSWER-
Unemployment benefits
, 3|Page
Which of the following employer-provided benefits is taxable? -
ANSWER-Personal use of company vehicle
Which of the following workers can be classified as an exempt
employee? - ANSWER-An executive assistant earning $1,129.00
each week exercising discretion while performing duties
When is Form 1042-S required to be provided to the IRS? -
ANSWER-March 15
Which of the following statements is true about §125 plans? -
ANSWER-Employer contributions taken as cash are taxable
compensation
An employee is injured on the job and is unable to work for three
months. During that time, the employee receives $3,100.00 of
workers' compensation paid by the state agency. The employer
uses the Wage Bracket Method and the employee claims Married
and two allowances on a 2019 Form W-4. Calculate the amount
of federal income tax that must be withheld for workers'
compensation payments. - ANSWER-$0.00
