THE PAYROLL SOU RCE CPP EXAM WITH

THE PAYROLL SOU RCE CPP EXAM WITH

QUESTIONS AND CORRECT ANSWERS ||

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Which of the following items represents an input interface to the payroll system?

• general ledger
• time and attendance
• benefit payments
• material usage records - ANSWER-B. time and attendance

A company has a gross payroll of $120,589.36 that is taxable for federal income, social security, and Medicare taxes. Federal income tax withheld is $24,117.87; combined social security and Medicare taxes withheld are $9,225.09. What is the company's total payroll tax liability for this pay period?

A. $33,342.96

B. $42,568.05

C. $40,156.26

D. $66,685.92 - ANSWER-B $42,568.05

$24,117.87 + $9,225.09 + $9,225.09 = $42,568.05

One reason many companies use a Zero Balance Checking Account is that: 1 / 4

• cash is available for investment until items are presented for payment at the

company's bank

• funds do not have to be deposited until the employee cashes the check
• the company receives interest on the account
• bank reconciliations are not required - ANSWER-A. cash is available for

investment until items are presented for payment at the company's bank

In a customer service situation, Payroll should:

• assure the caller everything is okay, even when it is not
• gets in the last word
• avoid addressing stressful issues

D remain assertive and stay focused - ANSWER-D. Remain assertive and stay focused

Each of the following items qualifies as a de minimis fringe benefit EXCEPT:

• occasional parties and picnics for employees
• occasional supper money for working overtime
• traditional holiday gifts, such as food items
• group legal services worth less than $100 annually - ANSWER-D. group legal

services worth less than $100 annually

All of the following steps are required when initiating direct deposit for an

employee EXCEPT:

• prenotification
• receiving financial institution routing number
• getting authorization from the employee
• receiving employee's bank account number - ANSWER-A. Prenotification 2 / 4

A team comprised of members of a department's staff with the intention of

improving their own process is a:

• cross-functional team
• conversion team
• functional team
• management team - ANSWER-C. Functional Team

An employee who works for more than one employer and has exceeded the social

security wage base may:

• take a credit against federal income tax on Form 1040
• demand that the employer refunds the overage
• apply the social security tax to next year's withholdings
• apply the overage to benefits paid at age 65 - ANSWER-A. take a credit against

federal income tax on form 1040

When determining the value of employer-provided parking, which of the following valuations methods is allowed?

• employer's cost
• employee's cost
• lower of employee's cost or fair market value
• fair market value - ANSWER-D. Fair Market Value

What is the purpose of the payroll accrual entry?

• to recognize expenses in the period in which they were incurred
• to reverse an entry made in error
• to recognize expenses in the period in which they were paid 3 / 4

• to reverse an entry from a previous period - ANSWER-A. To recognize

expenses in the period in which they were incurred

Which of the following is LEAST likely to be considered when looking at the security of a new payroll system?

• regular data back-up and storage
• protection against computer viruses
• limited system access
• system edits - ANSWER-D. system edits

Company deadlines for payroll data input documents are essential for:

• timely processing of the payroll
• accurate entry of data
• guaranteeing that all information is processed
• adequate auditing purposes - ANSWER-A. timely processing of the payroll

An employee earns $9 per hour and an additional 10 cents per hour for hours worked after 7:00 p.m. If an employee works from 2:00 p.m. to 11:00 p.m., with an unpaid meal break from 6:00 p.m. to 7:00 p.m., Monday through Friday, what is the employee's weekly gross pay under the Fair Labor Standards Act?

A. $360

B. $361

C. $362

• $364 - ANSWER-C. $362 (40x$9) +(20x$.10) =$362

The BEST reason for tracking pay-related problem statistics is to enable Payroll to:

• identify root causes and take actions to prevent similar recurrences
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