CPP Practice Test

Under the FLSA, "exempt status" refers to employees who are:

In payroll, "gross-to-net" calculations are used to:

Which document must employers file to report federal unemployment taxes?

What is the significance of "deferred compensation" in payroll?

What is the primary purpose of the Uniformed Services Employment and Reemployment Rights Act (USERRA) in relation to payroll?

When determining overtime pay under the FLSA, what is the significance of the "regular rate of pay"?

In the context of payroll, what is a "third-party sick pay"?

How does the Electronic Federal Tax Payment System (EFTPS) impact payroll processing?

What is the primary regulatory requirement for garnishments under Title III of the Consumer Credit Protection Act (CCPA)

The term "disposable earnings" refers to an employee's earnings:

What is the primary concern of the "payroll source document"?

How does the "year-to-date" 'YTD' information on a pay stub benefit the employee?

"SUTA dumping" is a practice that involves:

Which payroll concept is defined by the "constructive receipt doctrine"?

The "lookback period" for determining an employer's federal tax deposit schedule is based on:

In payroll, the term "net pay" refers to:

The "payroll tax reconciliation" process is critical for ensuring:

Which of the following best describes the payroll concept of "gross-up"?

Which payroll record retention requirement is mandated by the Fair Labor Standards Act (FLSA)

What is the impact of the "constructive payment" doctrine on the taxation of deferred compensation plans under IRC Section 409A?

In calculating overtime pay under the Fair Labor Standards Act "FLSA", how is the "regular rate of pay" affected when non-discretionary bonuses are provided to employees?

When an employer implements a qualified transportation fringe benefit plan, which of the following statements accurately reflects the tax implications?

Which document must employers file annually with the IRS to report federal unemployment taxes?

In the context of payroll, what is the primary function of Form I-9, Employment Eligibility Verification?

Which of the following statements is true regarding the garnishment of employee wages?

Under IRS guidelines, which type of compensation is considered a "fringe benefit" that may be taxable to the employee?

What is the primary purpose of the Davis-Bacon Act in relation to payroll compliance?

Which regulation requires employers to report newly hired and re-hired employees to a state directory within 20 days of their hire or rehire date?

What is the significance of the "constructive receipt doctrine" in payroll?

Under the Sarbanes-Oxley Act (SOX), what critical payroll-related requirement must publicly traded companies adhere to?

What is the impact of the Worker Adjustment and Retraining Notification (WARN) Act on payroll administration during mass layoffs?

In payroll compliance, what is the primary function of the Electronic Federal Tax Payment System (EFTPS)?

What requirement does the Uniformed Services Employment and Reemployment Rights Act (USERR impose on employers regarding payroll?

Which federal act requires employers to maintain records of employees' wages, hours, and other conditions and practices of employment?

Under the Consolidated Omnibus Budget Reconciliation Act (COBR what is the maximum period for which continuation of group health coverage must be offered to qualified beneficiaries following a qualifying event?

For payroll compliance, the Affordable Care Act (ACrequires applicable large employers (ALEs) to offer health insurance that meets certain standards. How is an ALE defined?

How does the Affordable Care Act (AC affect payroll reporting for Applicable Large Employers (ALEs)?

What is the main purpose of the "payroll source" as a resource for payroll professionals?

What is the correct way to calculate the regular rate of pay for an employee who earns a weekly salary of $500 and works 50 hours in a week?

When calculating net pay, which of the following is NOT subtracted from gross pay?

How should a payroll professional calculate the disposable income for garnishment purposes?

When calculating overtime pay under the Fair Labor Standards Act (FLS

In a biweekly pay period, an employee works 86 hours with 6 of those hours being overtime. If the regular hourly rate is $20, what is the total gross pay?

If an employee elects to contribute 10% of their gross pay to a 401(k) plan, and their gross pay is $2,000, how much is withheld for the 401(k) contribution?

For an employee with a monthly salary of $4,000 who receives a non-discretionary bonus of $1,000, how should the regular rate of pay be recalculated for overtime purposes in a month where the employee worked 170 hours?

How is the net pay affected when an employee participates in a pre-tax health insurance plan?

If an employee's taxable wages are $50,000 annually and they claim two allowances, with each allowance worth $4,150, what is the amount of wages subject to federal income tax?

What method is used to calculate the amount of federal income tax withheld from an employee's paycheck when using the percentage method tables?

In the case of a supplemental wage payment, such as a bonus, if the employer chooses to use the aggregate method for tax withholding, how is the withholding amount determined?

For an employee participating in a Flexible Spending Account (FS

If an employee earns a monthly commission of 5% on sales above $20,000 and reports sales of $30,000, what is the commission amount?

For an employee with a gross pay of $600 and a child support garnishment order specifying 60% of disposable income can be garnished, if the disposable income is $500, what amount is garnished from the employee's paycheck?

How should a payroll professional calculate the net pay for an employee who has mandatory deductions for a retirement plan at 4% of gross pay, given the gross pay is $3,000?

What is the correct approach to calculate the annual net pay from bi-weekly paychecks, assuming no changes in deductions or salary throughout the year?

If an employee opts for a pretax deduction for a commuter benefits program at $100 per month, and their monthly gross income is $3,000, what impact does this have on their federal taxable income?

In calculating garnishments, if an employee's disposable income is $1,200 and the maximum allowed garnishment amount is 25%, but the employee already has a child support garnishment taking 20%, how much can be garnished for a new debt order?

When calculating a retroactive pay increase, if an employee was supposed to receive a $1.00 per hour raise 8 weeks ago and worked an average of 40 hours per week, what is the total amount of retroactive pay due?

An employee earning an hourly rate of $25 worked 42 hours in a workweek, including 2 hours on a holiday that pays double time. How much is the employee's gross pay for the week?

Which of the following best describes "gross-to-net calculations" in payroll processing?

In the context of payroll systems, what is the significance of a "payroll master file"?

What is the primary consideration when implementing a new payroll system?

What role does an "automated timekeeping system" play in payroll processing?

What is the primary purpose of conducting a payroll reconciliation?

In payroll processing, what is the primary function of "sui generis" payroll codes?

What is the purpose of "payroll segmentation" in complex organizations?

What is the significance of "year-to-date" 'YTD' calculations in payroll?

What is a critical consideration when selecting a payroll system for a multinational corporation?

In the context of payroll compliance, what is the primary purpose of "audit trails"?

How does the implementation of an "Employee Self-Service" (ESS) portal impact payroll administration?

How does "direct deposit" primarily benefit employers in the payroll process?

What is the primary goal of payroll reconciliation?

Which of the following best describes the purpose of a payroll audit?

In the context of payroll management, what is the significance of maintaining a payroll continuity plan?

What is the primary function of garnishment administration in payroll?

What is the key purpose of payroll segmentation?

How does conducting a payroll benchmarking exercise benefit an organization?

In payroll management, what is the primary consideration when establishing a "payroll cycle"?

How does "employee self-service" in payroll systems impact payroll administration?

What role does change management play in payroll administration?

Which of the following best defines "payroll balancing and controls"?

When preparing for a payroll audit, what is the most critical initial step to ensure accuracy in the audit process?

What is a key reason for conducting a year-end payroll audit?

During a payroll audit, what is the importance of auditing the payroll tax reports filed with government agencies?

In a payroll audit, how should auditors address discrepancies found between payroll records and bank statements?

What role does the analysis of overtime payments play in a payroll audit?

When auditing payroll, why is it important to verify the classification of employees as exempt or non-exempt?

How does testing the integrity of payroll data contribute to a payroll audit?

Why is it important to review the policies for payroll adjustments during an audit?

What is the significance of auditing direct deposit authorizations in a payroll audit?

During a payroll audit, how should unauthorized overtime be addressed?

What is the accounting treatment for bonuses paid to employees?

Which financial statement reflects the total payroll expense for a specific period?

In the context of payroll, what does the term "FUTA" stand for, and what is its significance?

How does the implementation of a new payroll system impact financial reporting?

When analyzing the variance between actual and budgeted payroll costs, which of the following would not be a likely cause of variance?

In payroll accounting, what is the primary purpose of a reconciliation process?

What role does the payroll department play in the internal control system of an organization?

Which of the following best describes the term "accrued payroll"?

How is the journal entry to record the payment of payroll typically structured?

What is the primary purpose of the Fair Labor Standards Act (FLSA)