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CPP (CERTIFIED PAYROLL PROFESSIONAL) FINAL EXAM NEWEST 2025/2026
ACTUAL EXAM WITH COMPLETE QUESTIONS AND CORRECT DETAILED
ANSWERS (100% VERIFIED ANSWERS) |ALREADY GRADED A+| ||PROFESSOR
VERIFIED||
A company pays 100% of the premiums for a disability plan. An
employee is disabled and unable to work for nine months. The
employee has not provided a Form W-4S. The insurance
company withholds: - ANSWER-social security and Medicare
taxes for the first six calendar months.
Monthly depositors must deposit their tax liability on: - ANSWER-
Before the 15th day of the following month
For a nonqualified deferred compensation plan to exclude
deferrals from income, distributions can be allowed: - ANSWER-
when the employee's disability lasts for a continuous period of at
least 12 months.
Form 1042 must be provided to the IRS by: - ANSWER-March
15th
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The main responsibility for determining the success of the payroll
department belongs to the: - ANSWER-Payroll manager
Payments from a qualified pension plan are reported on Form: -
ANSWER-1099-R
Under the concentration test, a cafeteria plan is not discriminatory
if benefits provided to key employees do not exceed: - ANSWER-
25%
In determining the source of income for services performed by a
nonresident alien partly inside and outside the U.S.,
compensation may be determined based on any of the following
procedures EXCEPT: - ANSWER-on the date the employee
returned to full-time U.S. employment.
For each payday, an employer's federal tax liability is calculated
by adding the total of all: - ANSWER-b. withheld federal taxes
plus the employer's share of social security and Medicare tax.
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Which of the following statements is true about §125 plans? -
ANSWER-Employer contributions taken as cash are taxable
compensation.
Which of the following benefits are included on Form 941, line 2,
Wages, tips, and other compensation? - ANSWER-Taxable group-
term life insurance coverage
Batch processing is: - ANSWER-not interactive
If an employer's 401(k) plan fails the ADP test, what action must
the employer take to keep the plan qualified? - ANSWER-
Distribute certain elective deferrals to highly compensated
employees
An employee is provided a parking space on the employers
premises. The FMV of the space is 200$ This is referred to as? -
ANSWER-Qualified transportation fringe benefit.
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What types of wages are excluded when calculating the regular
rate? - ANSWER-Paid time not worked
When setting up a new payroll system, testing is part of? -
ANSWER-The implementation
Pre-tax contributions to a cafeteria plan for medical insurance are
exempt from? - ANSWER-Social security, Medicare, FIT, and
FUTA only.
FUTA Rate - ANSWER-6%
For each payday, an employer's federal tax liability is calculated
by adding the total of all: - ANSWER-Federal income, social
security. And Medicare tax withheld
A company's cafeteria plan provides each employee with $200.00
per month to pay for chosen benefits. After selecting benefits, one
employee has $50.00 per month left and requests a payment of
CPP (CERTIFIED PAYROLL PROFESSIONAL) FINAL EXAM NEWEST 2025/2026
ACTUAL EXAM WITH COMPLETE QUESTIONS AND CORRECT DETAILED
ANSWERS (100% VERIFIED ANSWERS) |ALREADY GRADED A+| ||PROFESSOR
VERIFIED||
A company pays 100% of the premiums for a disability plan. An
employee is disabled and unable to work for nine months. The
employee has not provided a Form W-4S. The insurance
company withholds: - ANSWER-social security and Medicare
taxes for the first six calendar months.
Monthly depositors must deposit their tax liability on: - ANSWER-
Before the 15th day of the following month
For a nonqualified deferred compensation plan to exclude
deferrals from income, distributions can be allowed: - ANSWER-
when the employee's disability lasts for a continuous period of at
least 12 months.
Form 1042 must be provided to the IRS by: - ANSWER-March
15th
,2|Page
The main responsibility for determining the success of the payroll
department belongs to the: - ANSWER-Payroll manager
Payments from a qualified pension plan are reported on Form: -
ANSWER-1099-R
Under the concentration test, a cafeteria plan is not discriminatory
if benefits provided to key employees do not exceed: - ANSWER-
25%
In determining the source of income for services performed by a
nonresident alien partly inside and outside the U.S.,
compensation may be determined based on any of the following
procedures EXCEPT: - ANSWER-on the date the employee
returned to full-time U.S. employment.
For each payday, an employer's federal tax liability is calculated
by adding the total of all: - ANSWER-b. withheld federal taxes
plus the employer's share of social security and Medicare tax.
,3|Page
Which of the following statements is true about §125 plans? -
ANSWER-Employer contributions taken as cash are taxable
compensation.
Which of the following benefits are included on Form 941, line 2,
Wages, tips, and other compensation? - ANSWER-Taxable group-
term life insurance coverage
Batch processing is: - ANSWER-not interactive
If an employer's 401(k) plan fails the ADP test, what action must
the employer take to keep the plan qualified? - ANSWER-
Distribute certain elective deferrals to highly compensated
employees
An employee is provided a parking space on the employers
premises. The FMV of the space is 200$ This is referred to as? -
ANSWER-Qualified transportation fringe benefit.
, 4|Page
What types of wages are excluded when calculating the regular
rate? - ANSWER-Paid time not worked
When setting up a new payroll system, testing is part of? -
ANSWER-The implementation
Pre-tax contributions to a cafeteria plan for medical insurance are
exempt from? - ANSWER-Social security, Medicare, FIT, and
FUTA only.
FUTA Rate - ANSWER-6%
For each payday, an employer's federal tax liability is calculated
by adding the total of all: - ANSWER-Federal income, social
security. And Medicare tax withheld
A company's cafeteria plan provides each employee with $200.00
per month to pay for chosen benefits. After selecting benefits, one
employee has $50.00 per month left and requests a payment of
