The Payroll Source CPP Practice Exam
Questions and Answers 100% Pass
Which of the following features is LEAST likely to be considered when looking at the
security of a new payroll system?
a. regular data back-up and storage
b. protection against computer viruses
c. limited system access
d. system edits - ✔✔d. system edits
Company deadlines for payroll data input documents are essential for:
a. timely processing of the payroll
b. accurate entry of data
c. guaranteeing that all information is processed
d. adequate auditing purposes - ✔✔a. timely processing of the payroll
The BEST reason for tracking pay-related problem statistics is to enable Payroll to:
a. identify root causes and take actions to prevent similar recurrences
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,b. apologize to clients in a more professional manner
c. direct problems to those who caused the problem
d. justify more resources to handle more problems - ✔✔a. identify root causes and take
actions to prevent similar recurrences
With regard to EEs' reported tips, the ER must:
a. withhold and pay only the EEs' portion of FICA taxes on tips
b. report tax on tips separately when making an employment tax deposit
c. report tips as wages on Form W-2 and pay the ER portion of FICA taxes
d. report and pay the ER portion of FICA taxes on the portion of cash tips above the
federal minimum wage - ✔✔c. report tips as wages on Form W-2 and pay the ER
portion of FICA taxes
Transactions are recorded in chronological order into books of original entry called:
a. registers
b. vouchers
c. invoices
d. journals - ✔✔d. journals
The KEY advantage of using an automated time and attendance system is that it:
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, a. identifies phantom EEs
b. reduces errors
c. interfaces with the payroll system
d. frees supervisors from having to review hours - ✔✔b. reduces errors
As part of the implementation of a new payroll system, all transactions from the most
recent actual payroll are processed in the new system prior to using the system to run
payrolls. This is an example of what type of testing?
a. compliance
b. back-up
c. ongoing
d. parallel - ✔✔d. parallel
To exhibit good customer service skills, payroll staff must understand and be able to
explain:
a. payroll forms
b. benefits enrollment techniques
c. systems design decisions
d. strategic departmental direction - ✔✔a. payroll forms
Katelyn Whitman, All Rights Reserved © 2025 3
Questions and Answers 100% Pass
Which of the following features is LEAST likely to be considered when looking at the
security of a new payroll system?
a. regular data back-up and storage
b. protection against computer viruses
c. limited system access
d. system edits - ✔✔d. system edits
Company deadlines for payroll data input documents are essential for:
a. timely processing of the payroll
b. accurate entry of data
c. guaranteeing that all information is processed
d. adequate auditing purposes - ✔✔a. timely processing of the payroll
The BEST reason for tracking pay-related problem statistics is to enable Payroll to:
a. identify root causes and take actions to prevent similar recurrences
Katelyn Whitman, All Rights Reserved © 2025 1
,b. apologize to clients in a more professional manner
c. direct problems to those who caused the problem
d. justify more resources to handle more problems - ✔✔a. identify root causes and take
actions to prevent similar recurrences
With regard to EEs' reported tips, the ER must:
a. withhold and pay only the EEs' portion of FICA taxes on tips
b. report tax on tips separately when making an employment tax deposit
c. report tips as wages on Form W-2 and pay the ER portion of FICA taxes
d. report and pay the ER portion of FICA taxes on the portion of cash tips above the
federal minimum wage - ✔✔c. report tips as wages on Form W-2 and pay the ER
portion of FICA taxes
Transactions are recorded in chronological order into books of original entry called:
a. registers
b. vouchers
c. invoices
d. journals - ✔✔d. journals
The KEY advantage of using an automated time and attendance system is that it:
Katelyn Whitman, All Rights Reserved © 2025 2
, a. identifies phantom EEs
b. reduces errors
c. interfaces with the payroll system
d. frees supervisors from having to review hours - ✔✔b. reduces errors
As part of the implementation of a new payroll system, all transactions from the most
recent actual payroll are processed in the new system prior to using the system to run
payrolls. This is an example of what type of testing?
a. compliance
b. back-up
c. ongoing
d. parallel - ✔✔d. parallel
To exhibit good customer service skills, payroll staff must understand and be able to
explain:
a. payroll forms
b. benefits enrollment techniques
c. systems design decisions
d. strategic departmental direction - ✔✔a. payroll forms
Katelyn Whitman, All Rights Reserved © 2025 3
