CPP – CERTIFIED PAYROLL PROFESSIONAL
EXAM QUESTIONS AND
VERIFIED ANSWERS GRADED A+ | 100%
PASS | 2026 UPDATE!
The voluntary agreement between a state and the federal Department
of Health and Human Services (HHS) covering the state's employees
under the social security and Medicare programs is known as a: a.
§125 agreement.
b. §132 agreement.
c. §137 agreement.
d. §218 agreement. - ANSWER d. §218 agreement.
In determining the source of income for services performed by a
nonresident alien partly inside and partly outside the U.S.,
compensation may be determined based on any of the following
procedures EXCEPT on:
a. the date the employee returned to full-time U.S. employment.
b. the ratio of full days worked in U.S. versus total number of days
worked.
c. the performance of specific action.
d. a geographic basis. - ANSWER a. the date the employee returned to
full-time U.S. employment.
,COBRA coverage ends before the maximum coverage periods are
reached in all of the following situations EXCEPT when the:
a. required COBRA premium is not paid within 45 days of the due date.
b. qualified beneficiary becomes covered under another group health
plan.
c. qualified beneficiary becomes entitled to Medicare benefits.
d. employer ceases to provide group health coverage to its employees.
- ANSWER a. required COBRA premium is not paid within 45 days of
the due date.
When reporting the cost of employer provided health coverage on
Form W-2, all the following methods can be used for calcullating the
amount EXCEPT:
a. COBRA applicable premium method
b. premium charge method
c. actual COBRA premium charged method
d. modified COBRA premium method - ANSWER c. actual COBRA
premium charged method
IRC §125 generally prohibits the deferral of compensation from one
plan year to the next. The exception to this rule includes all of the
following benefits EXCEPT for:
a. a cash or deferred arrangements under IRC §401(k).
,b. contributions to Health Savings Accounts (HSA).
c. the carryover of up to $500 in a Medical FSA.
d. the purchased vacation days. - ANSWER d. the purchased vacation
days
Which of the following employer-paid meals or lodging is taxable? a.
Subsidized meals in the company's all-employee cafeteria
b. Itemized hotel bill when away from home for a company-sponsored
conference.
c. Substantiated meals while traveling away from home on business
d. Meals while moving from an old home to a new home. - ANSWER
d. Meals while moving from an old home to a new home.
The health insurance amount reported on Form W-2 in Box 12, with
Code DD is: - ANSWER For informational purposes only
An agreement between a state and the federal department of Health
and Human Services (HHS) is known as - ANSWER §218 agreement.
The foreign earned income exclusion limit for a qualified employee in
2019 is - ANSWER $105,900
, Totalization agreements - ANSWER Designed to prevent double
taxation in social security and medicare
What types of Visas are avaliable for foreign nationals seeking
admission to the US? - ANSWER Immigrant and Nonimmigrant
Form SS-5 is used to: - ANSWER obtain a new social security card or
have a card reissued.
Under the FLSA, an employee under the age of 20 can be paid the
opportunity wage of 44.25 for a maximum of: - ANSWER 90 calendar
days.
Which of the following deductions should never be put in arrears? a.
Charitable contributions
b. Group-term life insurance
c. Garnishments
d. Health insurance deductions - ANSWER c. Garnishments
Form 941, line 2, Wages, tips, and other compensation, requires what
amount to be entered? - ANSWER Taxable Payroll
EXAM QUESTIONS AND
VERIFIED ANSWERS GRADED A+ | 100%
PASS | 2026 UPDATE!
The voluntary agreement between a state and the federal Department
of Health and Human Services (HHS) covering the state's employees
under the social security and Medicare programs is known as a: a.
§125 agreement.
b. §132 agreement.
c. §137 agreement.
d. §218 agreement. - ANSWER d. §218 agreement.
In determining the source of income for services performed by a
nonresident alien partly inside and partly outside the U.S.,
compensation may be determined based on any of the following
procedures EXCEPT on:
a. the date the employee returned to full-time U.S. employment.
b. the ratio of full days worked in U.S. versus total number of days
worked.
c. the performance of specific action.
d. a geographic basis. - ANSWER a. the date the employee returned to
full-time U.S. employment.
,COBRA coverage ends before the maximum coverage periods are
reached in all of the following situations EXCEPT when the:
a. required COBRA premium is not paid within 45 days of the due date.
b. qualified beneficiary becomes covered under another group health
plan.
c. qualified beneficiary becomes entitled to Medicare benefits.
d. employer ceases to provide group health coverage to its employees.
- ANSWER a. required COBRA premium is not paid within 45 days of
the due date.
When reporting the cost of employer provided health coverage on
Form W-2, all the following methods can be used for calcullating the
amount EXCEPT:
a. COBRA applicable premium method
b. premium charge method
c. actual COBRA premium charged method
d. modified COBRA premium method - ANSWER c. actual COBRA
premium charged method
IRC §125 generally prohibits the deferral of compensation from one
plan year to the next. The exception to this rule includes all of the
following benefits EXCEPT for:
a. a cash or deferred arrangements under IRC §401(k).
,b. contributions to Health Savings Accounts (HSA).
c. the carryover of up to $500 in a Medical FSA.
d. the purchased vacation days. - ANSWER d. the purchased vacation
days
Which of the following employer-paid meals or lodging is taxable? a.
Subsidized meals in the company's all-employee cafeteria
b. Itemized hotel bill when away from home for a company-sponsored
conference.
c. Substantiated meals while traveling away from home on business
d. Meals while moving from an old home to a new home. - ANSWER
d. Meals while moving from an old home to a new home.
The health insurance amount reported on Form W-2 in Box 12, with
Code DD is: - ANSWER For informational purposes only
An agreement between a state and the federal department of Health
and Human Services (HHS) is known as - ANSWER §218 agreement.
The foreign earned income exclusion limit for a qualified employee in
2019 is - ANSWER $105,900
, Totalization agreements - ANSWER Designed to prevent double
taxation in social security and medicare
What types of Visas are avaliable for foreign nationals seeking
admission to the US? - ANSWER Immigrant and Nonimmigrant
Form SS-5 is used to: - ANSWER obtain a new social security card or
have a card reissued.
Under the FLSA, an employee under the age of 20 can be paid the
opportunity wage of 44.25 for a maximum of: - ANSWER 90 calendar
days.
Which of the following deductions should never be put in arrears? a.
Charitable contributions
b. Group-term life insurance
c. Garnishments
d. Health insurance deductions - ANSWER c. Garnishments
Form 941, line 2, Wages, tips, and other compensation, requires what
amount to be entered? - ANSWER Taxable Payroll
