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CPP - CERTIFIED PAYROLL PROFESSIONAL EXAM FOR 2019 LIMITS
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CPP - CERTIFIED PAYROLL PROFESSIONAL EXAM FOR 2019 LIMITS
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CPP - CERTIFIED PAYROLLPROFESSIONAL EXAM FOR 2019 LIMITS
Counseling6is6appropriate6when:
a.6salaries6have6been6frozen.
b.6introducing6a6new6procedure.
c.6explaining6tax6law6changes.
d.6orienting6new6employees.6-6ans--a.6salaries6have6been6frozen.
In6addition6to6the6accuracy-
related6penalty6for6underpayment6of6taxes,6if6the6underpayment6of6taxes6is6due6to6fraud,6
the6IRS6may6asses6an6additional6penalty6of:6-6ans--75%
If6an6employer's6total6tax6liability6for6the6lookback6period6is6$75,000.00,6a6tax6liability6less
6than6$100,0006must6be6deposited6no6later6than:6-6ans--
Wednesday6or6Friday6under6the6semiweekly6rules.
A6company6has6accrued6$23,665.006of6vacation6pay6to6a6liability6account.6When6employ
ees6are6paid6the6vacation6amount6due,6the6entries6to6the6vacation6liability6account6will6be
6recorded6as6a:6-6ans--debit6to6the6liability6account.
Under6the6FLSA,6when6a6highly6compensated6exempt6employee6receives6less6than6$10
0,000.006in6compensation6during6the6year,6the6employer6may:6-6ans--
within6one6month6after6the6end6of6the6year,6make6a6final6payment6to6the6employee6to6rea
ch6$100,000.006in6annual6compensation.
Cafeteria6plans6and6other6flexible6benefit6plans6are6generally6funded6by6either6of6the6foll
owing6mechanisms:6-
6ans--"flex6dollars"6or6"flex6credits",6salary6reduction,6or6after6tax6contributions.
IRC6§1256Cafeteria6plans6are6generally6funded6by6all6of6the6following6mechanisms6EXC
EPT:
a.6flex6dollars".
b.6COBRA.
c.6after-tax6employee6contributions.
d.6salary6reduction.6-6ans--b.6COBRA.
Form6W-4S6allows6the6third-
party6sick6pay6provider6to6withhold6federal6income6tax6based6on:6-6ans--a6flat6amount.
,A6National6Medical6Support6Notice6requires6an6employer6to:6-6ans--
honor6the6qualified6medical6child6support6order.
An6employee6with6year-to-
date6wages6of6$25,000.006was6disabled6for6four6months6and6was6paid6$6,200.006by6a6th
ird-
party6insurer.6The6disability6plan6premiums6are6paid6entirely6by6the6employer.6No6Form6
W-
4S6was6provided6to6the6insurer.6Calculate6the6amount6of6federal6income,6social6security,6
and6Medicare6taxes6the6third6party6payer6must6withhold.6-6ans--$474.306-
6Social6security6and6Medicare6taxes6are6withheld6for6six6calendar6months6after6the6emplo
yee's6last6day6of6work.
If6an6employer6sells6or6transfers6its6business:6-6ans--
Form69416must6be6filed6by6both6the6previous6and6current6owners6for6the6quarter6during6w
hich6the6sale6took6place.6Each6employer6must6report6only6the6wages6it6paid6and6taxes6it6
withheld.
If6an6employer6goes6out6of6business,6completion6of6Part636of6Form69416is6required6with6t
he6final6date6it6paid6wages.6This6action6also6accelerates6the6date6the6Forms6W-
26are6due6to6SSA6to:6-6ans--
the6end6of6the6second6month6following6the6quarter6the6business6closed.
An6employee6earns6$1,000.006semimonthly.6Deductions6include6$235.006for6federal6inc
ome,6social6security,6Medicare,6and6state6taxes6and6$300.006in6child6support.6Calculate6t
he6amount6that6can6be6deducted6for6a6creditor6garnishment.6-6ans--
Under6the6CCPA6for6a6creditor6garnishment,6an6employer6must6withhold6the6lesser6of625
%6of6the6employee's6disposable6earnings6or6the6difference6between6the6employee's6disp
osable6earnings6and6306times6the6minimum6wage6to6satisfy6the6creditor6garnishment.6If6a
n6employee6has6an6involuntary6deduction6with6a6higher6priority6deduction6than6the6CCPA
6limit6for6creditor6garnishments,6nothing6will6be6withheld.
What6is6a6Lock-In6letter?6-6ans--
A6letter6from6the6IRS6that6requires6the6employer6to6change6the6with6holdings6for6federal6t
ax.
How6long6do6IRS6Payroll6records6need6to6be6saved?6-6ans--
46years6after6the6tax6returns6due6date.6(ie6940,6941,6W-26and6W-3)
What6is6the6allowable6tip6credit?6-6ans--No6more6than6$5.126per6hour
Minimum6wage6for6tipped6employees6-6ans--
$2.136per6hour6(combined6with6tips6must6equal6$7.25)
Social6Security6Wage6Tax6Limit6-6ans--$132,900
, What6is6the6Mandatory6Flat6Rate6for6supplemental6pay?6-6ans--
Exceeding6$16Million6is637%
What6is6the6Optional6Flat6Rate6for6Supplemental6Pay?6-6ans--
Not6Exceeding6$16Million6is622%
If6form6W-46is6incomplete,6the6employer6must:6-6ans--Reject6the6form
Under6the6FLSA,6an6employee6wort6time6ends6when6the6employee:6-6ans--
ceases6performing6principal6activities
When6an6employee6wants6to6continue6her6exempt6status6the6next6year,6she6must6file6a6n
ew6W-46form6by:6-6ans--February615.
Counseling6is6appropriate6when:6-6ans--
an6employee6feels6insecure6about6work6performance.
What6is6the6definition6of6Imputed6Income?6-6ans--
Taxable6value6of6noncash6benefits6the6employee6recieves.
What6must6be6specified6at6the6time6of6the6employees6election6to6defer6into6a6non-
qualified6plan?6-6ans--the6time6and6form6of6distributions
Schedule6R6(Form6941)6is6used6to:6-6ans--
allocate6the6aggregate6information6reported6on6Form69416by6an6agent6to6each6client.
The6Primary6purpose6of6batch6controls6is6to:6-6ans--validate6entry6accuracy
When6is6form61042-S6required6to6be6provided6to6the6IRS?6-6ans--March615th
457b6-6ans--Employee6pre-
tax6dollars6diverted6into6investment6account6for6governmental6employees
Under6the6IRS6Rules,6an6employer's6401(k)6plan6may6meet6the6ADP6nondiscrimination6t
esting6requirements6by6matching:6-6ans--
100%6of6elective6deferrals6to63%6of6compensation6and
50%6of6deferrals6over63%6to65%6of6compensation
The6FLSA's6minimum6salary6for6exempt6employees6does6not6apply6to:6-6ans--
attorneys,6physicians6and6teachers.
A6nonresident6alien6wishing6to6claim6an6exemption6from6income6tax6on6wages6paid6by6th
e6employer6based6on6a6home6country6income6tax6treaty6must6provide6the6employer6with6
Form:6-6ans--8233
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