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Certified Payroll Professional (CPP) Practice Exam 2 50 Questions | Multiple Choice | Answers & Rationales Included

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Certified Payroll Professional (CPP) Practice Exam 2 50 Questions | Multiple Choice | Answers & Rationales Included

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Uploaded on
June 11, 2025
Number of pages
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Written in
2024/2025
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Certified Payroll Professional (CPP) Practice
Exam 2
50 Questions | Multiple Choice | Answers & Rationales Included



1. What form must an employee complete to determine federal income tax
withholding?

A. Form W-4
B. Form W-4
C. Form W-2
D. Form 1099

The W-4 form is used by employees to inform employers of their tax situation for
withholding purposes.

2. What is the current federal minimum wage as of 2025?

A. $9.25
B. $10.00
C. $7.25
D. $8.50

Federal minimum wage remains at $7.25/hour unless superseded by state law.

3. Which of the following taxes is paid entirely by the employer?

A. Medicare
B. Social Security

, C. FUTA
D. State income tax

Federal Unemployment Tax Act (FUTA) is funded solely by employers.

4. The Social Security wage base limit for 2025 is:

A. $147,000
B. $150,000
C. $168,600
D. $200,000

The Social Security wage base is the maximum earnings subject to Social
Security tax.

5. What is the FICA tax rate for employees in 2025?

A. 5.65%
B. 6.20%
C. 7.65%
D. 8.25%

FICA includes 6.2% for Social Security and 1.45% for Medicare.

6. What form summarizes total wages and taxes withheld for an employee
annually?

A. 940
B. W-4
C. W-2
D. 1095-C

Form W-2 reports wages and tax withholding to employees and the IRS.

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