THE PAYROLL SOURCE CPP FINAL EXAM

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THE PAYROLL SOURCE CPP FINAL EXAM

(VERSION B) NEWEST 2024 ACTUAL EXAM

COMPLETE 100 QUESTIONS AND CORRECT

DETAILED ANSWERS (VERIFIED ANSWERS)

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What amount would be included in the employee's income when the employer chooses to pay the taxes on a bonus of $800.00 and to use the supplemental optional flat rate for calculating the federal income tax? The employee's year-to-date earnings are $17,500.00 and the employee is not subject to any state income tax.

• $562.80
• $1,000.00
• $1,137.17
• $1,187.82 - ANSWER- c

Documents relating to federal income, social security and federal unemployment taxes must be retained for

a minimum of:

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• 3 years
• 4 years
• 5 years - ANSWER- c

Which form must be completed in addition to Form 941, when the employer is a semiweekly depositor?

• Schedule B
• Schedule D
• Form 943
• Form 945 - ANSWER- a

In what document are financial transactions first posted?

• Chart of Accounts
• General Ledger
• Journal
• Balance Sheet - ANSWER- c

What is the program that allows for the exchange of information between two computer systems?

• Integration
• Interface
• On-line 2 / 4

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• Time sharing - ANSWER- b

Which of the following procedures is the best internal control procedure?

• Cancelled checks are reviewed by payroll department, then

passed on to the internal audit department

• The check signer is stored by the payroll department for

safekeeping

• Payroll checks are signed and sealed by the cash management

department

• The payroll department operates the check signer and mails

all payroll checks - ANSWER- c

The company pays employees who work on holidays at a double-time rate. A salaried nonexempt employee earning $48,000.00 per year who normally works a 40-hour workweek works 7 hours on a holiday. What is the additional pay due the employee?

• $161.54
• $242.31
• $323.12
• $369.28 - ANSWER- c
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Employers must provide Form W-2 to employees no later than:

• December 31
• January 31
• February 28
• March 31 - ANSWER- b

What does a totalization agreement allow an employee to do?The Payroll Source Section 14.2-4 Certification Examination Content Outline Section IIF

• Pay social security tax in only one country
• Pay social security taxes in two countries
• Pay income tax in two countries
• Pay income tax in only one country - ANSWER- a

Under which of the following situations may all health insurance premiums paid be excluded from the employee's income?

• When the employee pays the premium directly to the

insurance company

• When the employee and employer share the premium
• When the employer withholds the premium
• When the employer pays the premium - ANSWER- d
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