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CPP CERTIFIED PAYROLL PROFESSIONAL EXAM 2024 -2025
COMPLETE 150 REAL EXAM QUESTIONS AND CORRECT
DETAILED ANSWERS/ GRADED A+
What is the definition of Imputed Income? - Correct Answer - Taxable value of noncash benefits the employee receives.
What must be specified at the time of the employee’s election to defer into a non-qualified plan? - Correct Answer - the time and form of distributions
Schedule R (Form 941) is used to: - Correct Answer - allocate the
aggregate information reported on Form 941 by an agent to each client.
The Primary purpose of batch controls is to: - Correct Answer - validate
entry accuracy
When is form 1042-S required to be provided to the IRS? - Correct Answer
- March 15th
In the Electronic Income Withholding Order (e-IWO) process employers and state child support agencies can share all of the following information
EXCEPT:
- new, original, or amended withholding order information.
- work state administrative fee schedule.
- employer acknowledgement files. 1 / 3
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- termination of noncustodial parent's employment. - Correct Answer - b.
work state administrative fee schedule.
Which of the following benefits requires Form W-2 Box 12 reporting of employer contributions? - Correct Answer - Health Savings Accounts
U.S. citizens working for U.S. companies abroad are generally subject to: -
Correct Answer - federal income tax, social security, and Medicare taxes, unless specific exclusions exist.
When an employer does not withhold the taxes on fringe benefits from an employee but recovers the taxes from the employee's other wages, the
taxes must be recovered by: - Correct Answer - April 1
Under the FLSA, which of the following documents must be retained for at least two years? - Correct Answer - Wage Rate Tables
Forms 940 and 941 can be filed electronically by using: - Correct Answer -
the Employment Tax e-file system.
Which form is used by a local government employer when withholding only Medicare tax? - Correct Answer - 941
The repayment of overpaid wages by an employee impact:
- electronic funds transfers.
- end-of-month balances.
- monthly totals of the payroll register.
- accounting and tax records. - Correct Answer - d. accounting and tax
records. 2 / 3
pg. 3 A computerized payroll system can help a payroll department accomplish
all of the following tasks EXCEPT:
- produces timely, accurate paychecks.
- maintain compliance with laws and regulations.
- retains records.
- recognizes changes in laws and regulations. - Correct Answer - d.
recognize changes in laws and regulations.
Health Reimbursement Arrangements (HRAs) are paid for by:
- employers only.
- employees only.
- employers and employees combined.
- either the employer or the employee, but not both. - Correct Answer - a.
employers only.
To correct a direct deposit payment made in error, within five banking days
the employer must generate a:
- credit authorization.
- single-entry reversal.
- double-entry reversal.
- debit authorization. - Correct Answer - b. single-entry reversal.
To foster a positive environment, payroll professionals must develop all of
the following interpersonal skills EXCEPT:
- motivation skills.
- leadership skills.
- cultural awareness.
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