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CPP (CERTIFIED PAYROLL PROF ESSIONAL)
FINAL EXAM NEWEST 2024 ACTUAL EXAM
COMPLETE 200 QUESTIONS AND CORRECT
DETAILED ANSWERS (VERIFIED ANSWERS)
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CPP EXAM
Which of the following workers can be classified as an exempt employee? - ANSWER- An executive assistant earning $1,129.00 each week exercising discretion while performing duties
When is Form 1042-S required to be provided to the IRS? - ANSWER- March 15
Which of the following statements is true about §125 plans? - ANSWER- Employer contributions taken as cash are taxable compensation
An employee is injured on the job and is unable to work for three months. During that time, the employee receives $3,100.00 1 / 4
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of workers' compensation paid by the state agency. The employer uses the Wage Bracket Method and the employee claims Married and two allowances on a 2019 Form W-4.Calculate the amount of federal income tax that must be withheld for workers' compensation payments. - ANSWER- $0.00
Workers' compensation paid under the state law are excluded from an employee's income for income, social security, and Medicare taxes.
Under the FLSA a workweek starts on: - ANSWER- Any day at
any time
After an employer has received an IRS lock-in letter, the employee submits an amended Form W-4 resulting in less
withholding than the letter requires. The employer MUST: -
ANSWER- Continue to withhold based on the lock-in letter
Counseling is appropriate when: - ANSWER- Layoffs occur
Which of the following statements is true regarding payroll tax deposits? - ANSWER- Employers reporting more than $50,000.00 in payroll taxes during the lookback period are semiweekly depositors. 2 / 4
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When would an employee have negative net pay? - ANSWER- Total deductions exceed gross wages
Which of the following statements is true regarding 401(k) plans? - ANSWER- In 2023, the maximum 401(k) deferral for employees under 50 years of age to a 401(k) plan is $22,500.00.PreviousNext
All of the following factors define a key employee in cafeteria
plan nondiscrimination testing EXCEPT: - ANSWER- Any
employee with compensation exceeding $120,000
Voiding a check issued in error in a prior year after all returns
were filed requires all of the following procedures EXCEPT: -
ANSWER- A refund to the employee
Which of the following workers can be classified as an exempt employee? - ANSWER- An executive assistant earning $949.00 each week exercising discretion while performing duties
How does imputed income impact an employee's net pay? - ANSWER- Decreases net pay
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An employer is required to transfer an employee's 401(k)
deferral into the trust fund: - ANSWER- As soon as it can
reasonably segregate the funds from general assets
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.
Coaching is appropriate when: - ANSWER- Improving an
employee's skills
Which of the following health insurance arrangements are taxable? - ANSWER- Discriminatory benefits provided in a self- insured plan to highly compensated employees
A National Medical Support Notice requires an employer to: -
ANSWER- Honor the qualified medical child support order
When an employee receiving payments from a third-party sick pay provider fails to complete Form W-4S, how much, if any, federal income tax is withheld from the payments? - ANSWER- No federal income tax is witheld
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