CPP Domain 1: Core Payroll Concepts Welcome to your CPP Domain 1: Core Payroll Concepts 1. CPP: Core Payroll Concepts What is the primary purpose of the Fair Labor Standards Act (FLSA) A. To regulate stock options and retirement plans B. To establish minimum wage, overtime pay eligibility, and recordkeeping C. To mandate health benefits for all full-time employees D. To enforce equal pay for equal work regardless of gender None 2. CPP: Core Payroll Concepts Which payroll concept is defined by the "constructive receipt doctrine"? A. Employees must be taxed on wages that they have actual control over, regardless of when they are actually paid. B. Employers are required to distribute paychecks within 24 hours of payroll processing. C. Employees can defer taxes on wages by choosing not to take possession of them. D. Employers must withhold taxes on the estimated value of non-cash benefits. None 3. CPP: Core Payroll Concepts Under the FLSA, "exempt status" refers to employees who are: A. Exempt from federal income tax withholding B. Not subject to minimum wage and overtime provisions C. Excluded from participation in the company's health insurance plan D. Not eligible for workers' compensation benefits None 4. CPP: Core Payroll Concepts What is the primary regulatory requirement for garnishments under Title III of the Consumer Credit Protection Act (CCP A. A) Limits the amount of an employee's earnings that can be garnished in any single week B. Requires employers to continue health insurance coverage for garnished employees C. Mandates a court hearing before any garnishment can be applied D. Allows employees to opt out of garnishments for debts under a certain amount None 5. CPP: Core Payroll Concepts In payroll, "gross-to-net" calculations are used to: A. Determine the employer's total payroll tax liability B. Calculate the amount of taxes to withhold from an employee's paycheck C. Convert annual salary amounts to hourly rates D. Calculate an employee's take-home pay after deductions and withholdings None 6. CPP: Core Payroll Concepts Which document must employers file to report federal unemployment taxes? A. Form 940 B. Form W-2 C. Form W-4 D. Form 941 None 7. CPP: Core Payroll Concepts The term "disposable earnings" refers to an employee's earnings: A. After voluntary deductions such as 401(k) contributions and health insurance premiums B. After involuntary deductions such as tax levies and child support garnishments C. Available for discretionary spending after all required deductions D. Remaining after all required tax withholdings but before any other deductions None 8. CPP: Core Payroll Concepts "SUTA dumping" is a practice that involves: A. Employers using aggressive strategies to reduce their State Unemployment Tax Act (SUTA) rates B. Employees claiming unemployment benefits while still employed C. Employers incorrectly classifying employees as independent contractors to avoid SUTA taxes D. Shifting payroll from high-rate to low-rate SUTA accounts to reduce tax liability None 9. CPP: Core Payroll Concepts The "lookback period" for determining an employer's federal tax deposit schedule is based on: A. The amount of federal income tax and FICA taxes reported in the previous quarter B. The total amount of taxable wages paid in the previous year C. The total amount of federal income tax and FICA taxes reported in a four-quarter lookback period D. The employer's credit rating and financial history None 10. CPP: Core Payroll Concepts What is the primary concern of the "payroll source document"? A. Documenting employee authorizations for voluntary deductions B. Serving as a record for time worked and leave taken C. Establishing the basis for payroll calculations and tax withholdings D. Providing proof of employer compliance with federal wage and hour laws None 11. CPP: Core Payroll Concepts When determining overtime pay under the FLSA, what is the significance of the "regular rate of pay"? A. It is the minimum wage set by federal law. B. It includes only the employee's base hourly rate. C. It encompasses all earnings divided by total hours worked in the workweek. D. It excludes bonuses and commission payments from the overtime calculation. None 12. CPP: Core Payroll Concepts What is the primary purpose of the Uniformed Services Employment and Reemployment Rights Act (USERR A. in relation to payroll? A) To ensure all uniformed service members receive double time for hours worked over 40 in a week B. To guarantee reemployment rights for employees who leave employment to perform military service C. To mandate a specific amount of paid military leave per year for service members D. To provide uniformed service members with exemptions from federal and state income taxes None 13. CPP: Core Payroll Concepts How does the Electronic Federal Tax Payment System (EFTPS) impact payroll processing? A. It allows employees to electronically file their personal income tax returns. B. It mandates electronic filing of all employee W-2 forms. C. It provides a method for employers to make all federal tax deposits electronically. D. It automates the calculation of taxes to be withheld from each paycheck. None 14. CPP: Core Payroll Concepts In the context of payroll, what is a "third-party sick pay"? A. Wages paid directly by the employer to an employee for sick time B. Payments made by an insurance company to an employee during a period of illness, under a plan contributed to by the employer C. A taxable benefit provided by the government during an employee's illness D. Compensation for sick leave accrued but not used by the employee at the time of termination None 15. CPP: Core Payroll Concepts Which payroll record retention requirement is mandated by the Fair Labor Standards Act (FLS A. A) Employers must retain payroll records for at least 7 years. B. Employers must keep employee time cards for a minimum of 3 years. C. Employers are required to maintain payroll records for at least 2 years. D. Payroll records must be kept on file by the employer for at least 4 years. None 16. CPP: Core Payroll Concepts What is the significance of "deferred compensation" in payroll? A. It refers to wages that are paid out immediately but taxed at a future date. B. It is compensation that employees elect to receive at a later date, typically in the form of retirement benefits. C. It is a mandatory reduction in current salary to cover future health benefits. D. It represents bonuses that are promised to employees but paid out only upon reaching certain company milestones. None 17. CPP: Core Payroll Concepts Which of the following best describes the payroll concept of "gross-up"? A. Increasing an employee's gross pay to cover the cost of taxes on a given net amount B. Calculating gross wages based on the number of units produced by an employee C. Adjusting gross wages to reflect inflation and cost of living increases D. Determining the gross amount of a bonus before applying discretionary deductions None 18. CPP: Core Payroll Concepts How does the "year-to-date" 'YTD' information on a pay stub benefit the employee? A. It shows the employee's current pay rate. B. It provides a detailed breakdown of the current pay period's deductions only. C. It indicates the total amount of taxes the employee will owe at year-end. D. It summarizes the total earnings, taxes, and deductions for the year up to the current pay period. None 19. CPP: Core Payroll Concepts The "payroll tax reconciliation" process is critical for ensuring: A. That the correct amount of sales tax is collected from customers B. That all employee requests for payroll advances are documented C. That taxes withheld and paid to tax agencies match the payroll records D. The timely distribution of annual bonuses based on company performance None 20. CPP: Core Payroll Concepts In payroll, the term "net pay" refers to: A. The amount an employee earns before any deductions are made B. The total cost to the employer for an employee's compensation C. The amount an employee receives after all deductions have been made D. The amount set aside for direct deposit versus paper checks None 1 out of 20 Time is Up! Time's up
