CPP {CERTIFIED PAYROLL PROFESSIONAL }
EXAM 2024-2025 WITH ACTUAL CORRECT
QUESTIONS AND VERIFIED DETAILED
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A monthly depositor becomes a semi-weekly depositor in all of the following situations EXCEPT when
the:
Liability in a deposit period is $50,000.00.
Payroll documentation should be written:
Simply enough to allow payroll functions to be completed with little assistance
A charitable contribution is substantiated with which two documents?
Form W-2 and a pledge card
An employee completed a 2020 Form W-4 claiming married filing jointly when hired. The employee
must complete a new Form W-4:
When the filing status changes
A company has accrued $23,665.00 of vacation pay to a liability account. When employees are paid the
vacation amount due, the entries to the vacation liability account will be recorded as a:
Debit to the liability account
Check fraud can be committed in all of the following manners EXCEPT:
Being included on the check verifier's negative account list
Totalization agreements alleviate the burden of double taxation for which of the following taxes?
Social Security and Medicare
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,IRC §125 generally prohibits the deferral of compensation from one plan year to the next. The exception
to this rule includes all of the following benefits EXCEPT for:
Purchased vacation days
An employee drove a company car 6,000 miles for business, 5,000 miles for commuting, and 4,000 miles
for other personal use. The car is valued at $63,100.00. What are the tax implications of the employee's
use of the car?
The employer must withhold social security and Medicare taxes on the value of the personal use of the
vehicle
The payment of a creditor garnishment withheld from an employee's wages will:
Decrease both assets and liabilities
When using the Optional Flat Rate Method, by what percentage is a bonus divided when grossing up for
employees with YTD wages less than $160,200.00 with no state or local withholding taxes?
70.35%
If a carwash employee receives and reports $20.00 or more in tips in a calendar month, employers:
Must withhold federal income, social security, and Medicare taxes on the tips
The Debt Collection Improvement Act (DCIA) authorizes federal agencies to:
Garnish an employee's wages without a court order for delinquent nontax debt owed to the United
States
A validity edit does all the following processes EXCEPT:
Ensure all data is correct
When calculating an employee's net pay, all of the following amounts are subtracted from gross
earnings except:
Taxable Wages
The minimum salary requirement does not apply to exempt professional employees who are:
Teachers working in an educational institution
What is the daily housing amount for the foreign housing cost exclusion for 2023?
52.60
Under a Sec. 125 plan, all of the following benefits are qualified benefits EXCEPT:
Deferred compensation to a 457(b) plan
When correcting Form 941, Line 2, Wages, tips, and other compensation, file Form:
941-X
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,An employee who is supporting another family has $600.00 semimonthly disposable earnings. The
employee's child support payments are $580.00 semimonthly and more than 12 weeks in arrears. Under
the CCPA, calculate the maximum amount that can be deducted from the employee's pay for child
support.
$330.00
The maximum holding period for §401(k) plan contributions is:
The 15th business day of the following month the deferral occurred
If an employee's net pay results in negative net pay, which of the following deductions can be reduced
or eliminated to bring the check to $0?
Voluntary deductions
Which of the following workers is an independent contractor?
A commercial artist furnishing her own tools and equipment
What determines the tax liability in the event of an off-cycle check?
When the employee receives the check
Under the FLSA white-collar exemption rules, an exempt outside sales employee will meet all of the
following requirements EXCEPT:
Being paid a salary of at least $684.00 a week
Contributions to Health Savings Accounts may be made by:
Employer and employee
Which of the following payroll issues are governed only by the states?
Unclaimed wages
Which form is used by a local government employer when withholding only Medicare tax?
Form 941
Due to poor accounting procedures and negligence, a company underdeposited its 2023 payroll tax
liability by $11,000.00. The error was corrected within five days of the due date. The company's total
federal income, social security, and Medicare tax liability was $150,000.00. The company may be subject
to:
Penalties for late deposit
The first step taken when giving employees the latitude to develop their own methods for achieving
results is to:
Establish the desired results
Reflective listening is:
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, Restating what you understand from the other's statements
An experienced systems analyst is having difficulty instituting state-mandated changes in handling child
support payments. Although working overtime, he struggles with the legal requirements and the
program is not operational. What style of management is most likely to be effective in handling the
employee's performance gap?
High task, high relationship
An employee earns $920.00 semimonthly. Deductions include $13.00 for federal income tax, $70.38 for
social security and Medicare taxes, and $100.00 for court-ordered child support payments. Calculate the
employee's semimonthly disposable pay.
$836.62
Disposable earnings are determined by subtracting all deductions required by law from an employee's
gross earnings. Deductions required by law include federal income, state income, local income, social
security and Medicare taxes.
An employee drove a company vehicle 5,000 miles for business and 6,000 miles for personal use. The
car is valued at $64,150.00. Which of the following statements regarding the employee's use of this
vehicle is true?
Employers are required to report the value of the personal use of the vehicle at least once a year
Which of the following statements is true about 401(k) plans?
Contributions to a Roth 401(k) plan are subject to federal income tax when deferred
Which of the following federal taxes, if any, must an employer withhold from an employee's tips when
the amount reported exceeds $20.00 in the month?
Federal income, social security, and Medicare taxes
As of December 1, an employee had earned $185,100.00 in salary, commissions, and bonuses. The
employee's semimonthly salary is $4,200.00. Calculate the social security and Medicare taxes to be
withheld from the employee's first pay in December.
$60.90
Determine if the employee's year-to-date wages are less than the social security wage base. If the year-
to-date wages are less than the social security wage base ($160,200.00), multiply the taxable wages by
the social security (6.2%) and Medicare (1.45%) tax rates. If the year-to-date wages are greater than the
social security wage base, multiply the taxable wages only by the Medicare tax rate to calculate the
Medicare taxes to withhold
In order for an employee receiving disability benefits from a third-party insurer to have federal income
tax withheld from the payments, what form must be submitted to the insurer?
Form W-4S
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