CPP CERTIFIED PAYROLL PROFESSIONAL EXAM

CPP CERTIFIED PAYROLL PROFESSIONAL EXAM

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CORRECT DETAILED ANSWERS (VERIFIED

ANSWERS) |ALREADY GRADED A+

What does FSA stand for?

• Federal Savings Accounts
• Flexible Spending Arrangement
• Fair Standards Act of 1985
• Federal Service Agency - ANSWER- B

Under a 125 plan pretax deductions are subject to what federal taxes?

• FICA, FUTA and FIT
• FICA and FUTA

C. FICA

• None - ANSWER- D

State and local government employees would participate in which of the following deferred plans?

• 401 (k)
• 403 (b)

C. 408

D. 457 - ANSWER- D

Public schools employees would participate in which of the following deferred plans? 1 / 4

• 401 (k)
• 403 (b)

C. 408

D. 457 - ANSWER- B

Which of the following employer stock purchase plans might be included in a qualified 401 (k) plan?

A. ERISA

B. ESOP

C. IRA

D. SEP - ANSWER- B

What does ADP stand for?

• Automatic Deposited Paycheck
• Automated Data Process
• Actual Defined Pension
• Actual Deferral Percentage (the percentage of wages deferred by employees

under a 401(k) retirement plan) - ANSWER- D

The defined benefit plans are generally administer by which department?

• Human Resources
• Payroll
• Employment
• Benefits - ANSWER- D
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The Family and Medical Leave Act of 1993 is administered and enforced by what department?

• Internal Revenue Service
• Fair Labor Standards Act
• Department of Labor
• Equal Employment Opportunity Commission - ANSWER- C

Which of the following may not be regulated by state law?

• How often employees must be paid
• What employers must do with unclaimed paychecks
• How soon employees must be paid after their employment is terminated
• What minimum wage an employee must receive - ANSWER- D

Which of the following is not a advantage of the direct deposit system to the employer?

• Direct deposit cannot be made mandatory in most states
• Prevents lost and stolen checks
• employees do not have to take time out of their work day to cash or deposit their

paycheck

• Better control of check stock - ANSWER- A

Which of the following is not a disadvantage of the direct deposit system to the employer?

• Direct deposit is not a paperless system
• Cannot dictate the bank that the employee uses
• Do not have to file/store cashed checks and related documents
• Loss of interest on payroll funds before paychecks clear - ANSWER- C 3 / 4

What are escheat laws?

• Federal laws governing direct deposit
• Federal laws governing unclaimed wages as abandoned property
• State laws governing direct deposit
• State laws governing unclaimed wages as abandoned property - ANSWER- D

Request for Taxpayer Identification Number and Certification is submitted on which form?

• Form SS-4
• Form SS-8
• Form W-7
• Form W-9 - ANSWER- D

What is the social security wage base?

A. $142,800

B. $147,000

C. $160,200

• No maximum amount - ANSWER- C

Verifying Social Security Numbers The SSA has three verification methods available to employers Which of the following is not one of them?

• Fax
• Phone
• Paper list
• Magnetic tape - ANSWER- A
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