CPP Certified Payroll Professional (APA) – Complete Exam Preparation Material

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CPP Certified Payroll Professional APA Questions




Form SS-8 - Correct Answer-Determination of Worker Status for
Purposes of Federal Employment Taxes and Income Tax Withholding


Form W-9 - Correct Answer-First, it is used by third parties to collect
identifying information to help file information returns with the IRS.


The form is never actually sent to the IRS, but is maintained by the
person who files the information return for verification purposes.


The information on the Form W-9 and the payment made are reported
on a Form 1099.


The second purpose is to help the payee avoid backup withholding. The
payer must collect withholding taxes on certain reportable payments for
the IRS. However, if the payee certifies on the W-9 they are not subject
to backup withholding they generally receive the full payment due them
from the payer. This is similar to the withholding exemptions
certifications found on Form W-4 for employees.


Form SS-5 - Correct Answer-Apply for an original Social Security card
Apply for a replacement Social Security card
Change or correct information on your Social Security number record


Form SS-4 - Correct Answer-Application for Employer Identification
Number (EIN)



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Accounting equation (Balance Sheet) - Correct Answer-Assets =
Liabilities + Capital
Assets - Liabilities = (Shareholders' or Owners' Equity)


Asset (Debit or Credit Normal Balance?) - Correct Answer-Debit


Expense (Debit or Credit Normal Balance?) - Correct Answer-Debit


Liability (Debit or Credit Normal Balance?) - Correct Answer-Credit


Capital (Debit or Credit Normal Balance?) - Correct Answer-Credit


Owners’ Equity (Debit or Credit Normal Balance?) - Correct Answer-
Credit


Revenue (Debit or Credit Normal Balance?) - Correct Answer-Credit


Supportive Communication - Correct Answer-Supportive communication
is a style of communicating that has a specific set of goals and
techniques. The primary goal of supportive communication is to resolve
conflict or achieve change in a situation while preserving, even
strengthening, the relationship between the communicating individuals.
This style of communication is used in many types of interpersonal
interactions, such as those including a power differential, as is found
between manager and employee, teacher and student, or parent and
child. It is also effective when used between those with more equal
power, such as spouses, business partners and friends. Learning these
techniques can result in more effective communication.




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Standard Payroll System Reports - Correct Answer-Standard reports are
already set up within the payroll system and can be generated as
required. These include reports on payroll audit, new hires, terminations,
compensation changes, benefit costs and vacation. The payroll system
user can define the parameters of the report such as limiting information
to specific dates, departments and categories.


Min Wage with Tips - Correct Answer-The Fair Labor Standards Act
(FLSA) requires payment of at least the federal minimum wage to
covered, nonexempt employees. An employer of a tipped employee is
only required to pay $2.13 an hour in direct wages if that amount plus
the tips received equals at least the federal minimum wage, the
employee retains all tips and the employee customarily and regularly
receives more than $30 a month in tips. If an employee's tips combined
with the employer's direct wages of at least $2.13 an hour do not equal
the federal minimum hourly wage, the employer must make up the
difference.


Some states have minimum wage laws specific to tipped employees.
When an employee is subject to both the federal and state wage laws,
the employee is entitled to the provisions which provides the greater
benefits.


Escheat laws - Correct Answer-Refer to unclaimed property obligations.
Companies who issue checks-for wages, payroll, employee
commissions, returnable garnishments, deferred compensation, payroll
services or bonuses have a potential (and probable) unclaimed property
obligation.


Schedule D (Form 941) - Correct Answer-to explain certain
discrepancies (caused by acquisitions, statutory mergers, and
consolidations) between Forms W-2, Wage and Tax Statement (Copy A),
and Forms 941, Employer's QUARTERLY Federal Tax Return, for the
totals of social security wages, Medicare wages and tips, social security
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tips, federal income tax withheld, and advance earned income credit
(EIC) payments


Workweek for 14 and 15-year-olds - Correct Answer-Outside school
hours, and on school days including Fridays, no more than 3 hours.
No more than 8 hours on a non-school day.
When school is in session, no more than 18 hours per week.
No more than 40 hours during a week when school is out.
Between the hours of 7 a.m. And 7 p.m., extended to 9 p.m. Between
June 1 and Labor Day.


1) Which form is used for Determination of Employee Work Status for
Purposes of Federal Employment Taxes and Income Tax Withholding?
A. Form I-9
B. Form SS-4
C. Form SS-5
D. Form SS-8 - Correct Answer-D


2) What amount must an independent contractor be paid for services
rendered before an employer is obligated to give them a 1099-MISC?
A. Once total reaches $600 or more
B. Total payments reach $600 or more for company's fiscal year
C. Total payments reach $600 or more for calendar year
D. Any individual payment makes during calendar year exceeding $600 -
Correct Answer-C


3) Qualified real estate agents and direct sellers are which of the
following?

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