Docsity
Docsity
Prepare for your exams
Prepare for your exams

Study with the several resources on Docsity

Earn points to download
Earn points to download

Earn points by helping other students or get them with a premium plan

Guidelines and tips
Guidelines and tips
Sell on Docsity
Sell on Docsity
Docsity AI
Docsity AI
Log inSign up

Prepare for your exams

Study with the several resources on Docsity

Find documents

Prepare for your exams with the study notes shared by other students like you on Docsity

Search for your university

Find the specific documents for your university's exams

Docsity AINEW

Summarize your documents, ask them questions, convert them into quizzes and concept maps

Explore questions

Clear up your doubts by reading the answers to questions asked by your fellow students

Earn points to download

Earn points by helping other students or get them with a premium plan

Share documents
download point icon20 Points

For each uploaded document

Answer questions
download point icon5 Points

For each given answer (max 1 per day)

All the ways to get free points
Get points immediately

Choose a premium plan with all the points you need

Study Opportunities

Choose your next study program

Get in touch with the best universities in the world. Search through thousands of universities and official partners

Community

Ask the community

Ask the community for help and clear up your study doubts

Free resources

Our save-the-student-ebooks!

Download our free guides on studying techniques, anxiety management strategies, and thesis advice from Docsity tutors

Payroll Fundamentals: Forms, Regulations, and Compliance, Exams of Business Administration

London Institute of Business and Technology (LIBT)Business Administration

A comprehensive overview of key concepts and regulations related to payroll, including federal employment taxes, wage and hour laws, and employee classification. It covers essential forms such as ss-8, w-9, ss-5, and ss-4, along with fundamental accounting principles and communication strategies. The document also delves into specific aspects of the fair labor standards act (flsa), including minimum wage, overtime pay, and child labor regulations. Additionally, it addresses topics such as escheat laws, fringe benefits, and new hire reporting requirements, offering a valuable resource for payroll professionals and those seeking to understand the complexities of payroll management.

Typology: Exams

2024/2025

Available from 05/21/2025

locaz-turus-1
locaz-turus-1 šŸ‡ŗšŸ‡ø

5

(1)

13K documents

1 / 29

Toggle sidebar

This page cannot be seen from the preview

Don't miss anything!

bg1
CPP Certified Payroll Professional APA
Form SS-8 correct answer Determination of Worker Status for Purposes of Federal Employment
Taxes and Income Tax Withholding
Form W-9 correct answer First, it is used by third parties to collect identifying information to
help file information returns with the IRS.
The form is never actually sent to the IRS, but is maintained by the person who files the
information return for verification purposes.
The information on the Form W-9 and the payment made are reported on a Form 1099.
The second purpose is to help the payee avoid backup withholding. The payer must collect
withholding taxes on certain reportable payments for the IRS. However, if the payee certifies on
the W-9 they are not subject to backup withholding they generally receive the full payment due
them from the payer. This is similar to the withholding exemptions certifications found on Form
W-4 for employees.
Form SS-5 correct answer Apply for an original Social Security card
Apply for a replacement Social Security card
Change or correct information on your Social Security number record
Form SS-4 correct answer Application for Employer Identification Number (EIN)
Accounting equation (Balance Sheet) correct answer Assets = Liabilities + Capital
Assets - Liabilities = (Shareholders' or Owners' Equity)
Asset (Debit or Credit Normal Balance?) correct answer Debit
pf3
pf4
pf5
pf8
pf9
pfa
pfd
pfe
pff
pf12
pf13
pf14
pf15
pf16
pf17
pf18
pf19
pf1a
pf1b
pf1c
pf1d

Partial preview of the text

Download Payroll Fundamentals: Forms, Regulations, and Compliance and more Exams Business Administration in PDF only on Docsity!

CPP Certified Payroll Professional APA

Form SS-8 correct answer Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding Form W-9 correct answer First, it is used by third parties to collect identifying information to help file information returns with the IRS. The form is never actually sent to the IRS, but is maintained by the person who files the information return for verification purposes. The information on the Form W-9 and the payment made are reported on a Form 1099. The second purpose is to help the payee avoid backup withholding. The payer must collect withholding taxes on certain reportable payments for the IRS. However, if the payee certifies on the W-9 they are not subject to backup withholding they generally receive the full payment due them from the payer. This is similar to the withholding exemptions certifications found on Form W-4 for employees. Form SS-5 correct answer Apply for an original Social Security card Apply for a replacement Social Security card Change or correct information on your Social Security number record Form SS-4 correct answer Application for Employer Identification Number (EIN) Accounting equation (Balance Sheet) correct answer Assets = Liabilities + Capital Assets - Liabilities = (Shareholders' or Owners' Equity) Asset (Debit or Credit Normal Balance?) correct answer Debit

Expense (Debit or Credit Normal Balance?) correct answer Debit Liability (Debit or Credit Normal Balance?) correct answer Credit Capital (Debit or Credit Normal Balance?) correct answer Credit Owners Equity (Debit or Credit Normal Balance?) correct answer Credit Revenue (Debit or Credit Normal Balance?) correct answer Credit Supportive Communication correct answer Supportive communication is a style of communicating that has a specific set of goals and techniques. The primary goal of supportive communication is to resolve conflict or achieve change in a situation while preserving, even strengthening, the relationship between the communicating individuals. This style of communication is used in many types of interpersonal interactions, such as those including a power differential, as is found between manager and employee, teacher and student, or parent and child. It is also effective when used between those with more equal power, such as spouses, business partners and friends. Learning these techniques can result in more effective communication. Standard Payroll System Reports correct answer Standard reports are already set up within the payroll system and can be generated as required. These include reports on payroll audit, new hires, terminations, compensation changes, benefit costs and vacation. The payroll system user can define the parameters of the report such as limiting information to specific dates, departments and categories. Min Wage with Tips correct answer The Fair Labor Standards Act (FLSA) requires payment of at least the federal minimum wage to covered, nonexempt employees. An employer of a tipped employee is only required to pay $2.13 an hour in direct wages if that amount plus the tips received equals at least the federal minimum wage, the employee retains all tips and the employee customarily and regularly receives more than $30 a month in tips. If an employee's tips combined with the employer's direct wages of at least $2.13 an hour do not equal the federal minimum hourly wage, the employer must make up the difference.

  1. What amount must an independent contractor be paid for services rendered before an employer is obligated to give them a 1099-MISC? A. Once total reaches $600 or more B. Total payments reach $600 or more for company's fiscal year C. Total payments reach $600 or more for calendar year D. Any individual payment makes during calendar year exceeding $600 correct answer C
  2. Qualified real estate agents and direct sellers are which of the following? A. Statutory Employees B. Statutory Nonemployees C. Employees D. Independent Contractors correct answer B
  3. Under the common law test, the IRS examiners are to group the evidence they gather into three general types or "categories" Which of the following is not one of them? A. Behavioral control B. Financial control C. Location of work D. Relationship of the parties correct answer C
  4. Which of the following is not regulated by the FLSA? A. Child labor B. Overtime pay C. Minimum Wage Rates D. 8 hour work day correct answer D
  5. Agent-drivers, commission-drivers and full-time life insurance salespersons are which of the following?

A. Statutory Employees B. Statutory Nonemployees C. Employees D. Independent Contractors correct answer A

  1. There are three parts of the ABC test, which is not one of them? A. Business-unusual and/ or away B. Risk of loss C. Customarily independent contractor D. Absence of control correct answer B
  2. Under the federal new hire reporting requirement how many days does an employer have after hire date? A. 10 days B. 20 days C. 30 days D. 40 days correct answer B
  3. What is Form I-9 used for? A. Application for Employer Identification Number B. Determination of Employee Work Status C. Application for IRS Individual Taxpayer D. Employment Eligibility Verification correct answer D
  4. Under the reasonable basis test, which of the following does not support an employer's treatment of a worker as an independent contractor? A. Past IRS employment tax audit B. Published IRS rulings
  1. Which is not one of the White Collar Exemption? A. Administrative B. Executive C. Management D. Professional employees correct answer C
  2. For overtime pay Which one is included in the regular rate? A. Discretionary bonuses B. Nondiscretionary bonuses C. Gifts D. Reimbursed expenses correct answer B
  3. For calculation of overtime pay Which one is not included in the regular rate? A. Supplemental disability payments B. On-call pay C. Retroactive pay D. Vacation pay correct answer D
  4. A computer professional must be paid at least what per hour to be exempt from overtime requirements under the FLSA? A. Minimum wage per hour B. 21.55 per hour C. 27.63 per hour D. 29.67 per hour correct answer C
  5. Ryan's regular workweek is 3750 hours and he is paid biweekly Ryan worked 38 hours in the first week and worked 45 hours in the second

A. 2.

B. 5

C. 7.

D. 8 correct answer B

  1. What is the federal minimum wage rate? A. 4. B. 5. C. 6. D. 7.25 correct answer D
  2. So long as the employee's tips are enough to make up the remainder of the minimum hourly wage What is the federal minimum wage for tipped employee? A. 2. B. 2. C. 2. D. 2.13 correct answer D
  3. What is the time limit on filing an FLSA complaint with the Wage and Hour Division? A. 1 or 2 years B. 2 or 3 years C. 3 or 4 years D. 4 or 5 years correct answer B
  4. A "working condition" fringe benefit is? A. Discount offered employees that's not more than 20% of the price for services offered to customers B. A service or an item of such small value as to make accounting for the benefit unreasonable

D. $240.00 correct answer D

  1. What is the maximum amount excluded from income by law in 2012 for Transit passes? A. $120. B. $125. C. $230. D. $240.00 correct answer B
  2. What is the maximum per round trip an employee may receive under commuting valuation method? A. $6. B. $3. C. $1. D. 0 correct answer B
  3. Expenses on a job-related move can be considered deductible and reimbursements for them excluded from income when what is met? A. New workplace must be at least 50 miles farther from the employee's old residence than the previous workplace was B. 12 months immediately following move, must work fulltime for at least 39 weeks in the general location of the new workplace C. At least 50 miles from old workplace then new D. Both A and B correct answer D
  4. An employee's date of birth is April 15, 1974 What age would be used for calculating group term life insurance for January 2012? A. 27 B. 28 C. 37

D. 38 correct answer D

  1. An employee is temporarily disabled and is being paid by a third party who is not an agent To request federal income tax withheld from third-party sick pay, which of the following form must be completed? A. Form W- B. Form W-4P C. Form W-4S D. Form W-5 correct answer C
  2. On what form must wages be reported on if an employee dies after receiving a paycheck but before cashing it and the check is reissued to the employee's personal representative? A. Form W-2D B. Form W- C. Form 1099-MISC D. Form 1099-R correct answer B
  3. Wages paid after the year of death are subject to what withholding taxes? A. Social Security, Medicare, Federal income tax and FUTA B. Social Security, Medicare and FUTA C. Social Security, Medicare D. None correct answer D
  4. The IRS approved rate for employer provided fuel for 2012 is? A. 5 cents per mile B. 5.5 cents per mile C. 55.5 cents per mile D. 58.5 cents per mile correct answer B
  1. Employee's personal use of a company provided vehicle is generally a taxable benefit Which of the following is not one of the three special valuation methods used to determine the taxable amount? A. Annual lease value B. Commuting C. Parking D. Vehicle cents per mile correct answer C
  2. Under the "fixed date" method, an advance for substantiated business travel expenses can be provided no more than how many days before an expense is incurred? A. 10 days B. 30 days C. 60 days D. 120 days correct answer B
  3. An employee has three children and her dependent care expenses are $7,500 for 2012 The employer reimburses her the full $7,500 in 2012 How much if any is taxable? A. $ B. $300 (only amount above 2,400 per child) C. $2, D. $7,500 correct answer C
  4. What is the maximum amount of employer provided group term life insurance that can be excluded from an employee's income? A. One times their annual salary B. $2, C. $50, D. $100,000 correct answer C
  1. Which of the following is a "de minimis" fringe and is excluded from taxable earnings? A. $25 gift certificate for Rainbow Foods B. $25 Target gift certificate C. $25 company check D. Gift certificate (e.g. Ham, Turkey) correct answer D
  2. Which of the following is a non-taxable moving expense? A. Meal B. Pre-move househunting C. Packing D. Temporary living correct answer C
  3. Under the IRC, which section regulates cafeteria plans? A. 123 B. 125 C. 127 D. 129 correct answer B
  4. What is the maximum amount for 2012 that an employee may elect to defer to a 401 (k) or 403 (b) plan? A. $15,000 B. $15,500 C. $16,500 D. $17,000 correct answer D
  5. What is the maximum amount for 2012 that an employee may elect to defer to a 457 plan? A. $15,500 B. $16,500 C. $17,000 D. $19,500 correct answer C
  6. What is the maximum amount for 2012 that an employee may elect for FSA dependent care? A. $2,400 B. $5,000 C. $7,500 D. No Limit correct answer B
  7. An employer with 120 participants offering a cafeteria plan must annually file what form? A. Suspended in 2002 no filing needed B. Form 5500 C/R C. Form 5500 D. Form 5550 C/R correct answer A
  8. Which of the following can not be part of a cafeteria plan? A. Group-term life insurance B. Qualified adoption assistance C. Cash D. Medical Savings Accounts correct answer D
  9. Under a cafeteria plan, pretax contribution to a 401 (k) are subject to what federal taxes? A. FICA, FUTA and FIT B. FICA and FUTA C. FICA D. None correct answer B
  10. CODA stand for what? A. Cash or Deferred Account B. Cost of Dependent Adoption C. Cash or Deferred Arrangement D. Cafeteria or Deferred Account correct answer C

paid after their employment is terminated D. What minimum wage an employee must receive correct answer D

  1. What day of the week occurs 53 times in 2012? A. Saturday B. Sunday, Monday C. Tuesday & Wednesday D. Thursday correct answer B
  2. Which of the following is not a advantage of the direct deposit system to the employer? A. Direct deposit cannot be made mandatory in most states B. Prevents lost and stolen checks C. employees do not have to take time out of their work day to cash or deposit their paycheck D. Better control of check stock correct answer A
  3. Which of the following is not a disadvantage of the direct deposit system to the employer? A. Direct deposit is not a paperless system B. Cannot dictate the bank that the employee uses C. Do not have to file/store cashed checks and related documents D. Loss of interest on payroll funds before paychecks clear correct answer C
  4. What are escheat laws? A. Federal laws governing direct deposit B. Federal laws governing unclaimed wages as abandoned property C. State laws governing direct deposit D. State laws governing unclaimed wages as abandoned property correct answer D
  5. An employee is married and has three children ages 5, and 10, what is the maximum income the employee can earn to be eligible for EIC in 2012? A. $35,353 B. $40,352 C. $40, D. No AEIC in 2012 correct answer D
  6. Request for Taxpayer Identification Number and Certification is submitted on which form? A. Form SS-4 B. Form SS-8 C. Form W-7 D. Form W-9 correct answer D
  7. What is the 2012 social security wage base? A. $4,624.20 B. $106,800 C. $110,100 D. No maximum amount correct answer C
  1. Verifying Social Security Numbers The SSA has three verification methods available to employers Which of the following is not one of them? A. Fax B. Phone C. Paper list D. Magnetic tape correct answer A
  2. For employee's who do not have an SSN they can get one by submitting "Application for a Social Security Card" Which of the following is the correct form? A. Form SS-4 B. Form SS-5 C. Form SS-8 D. Form SSA-7004 correct answer B
  3. When supplemental wage payment is paid separately or clearly indicated when add to regular wages What is the flat withholding rate for 2012? A. 25% B. 27% C. 28% D. 30% correct answer A
  4. What is the percentage on "backup withholding" for 2012? A. 25% B. 27% C. 28% D. 35% correct answer C
  5. Employees who want to take advantage of advance EIC must file an Earned Income Credit Advance Payment Certificate annually Which of the following is the correct form? A. Form W- B. Form W-5 C. Form W-2 D. Not available in 2012 correct answer D
  6. Which of the following would not be a supplemental wage payment? A. Vacation pay B. Backpay awards C. Retroactive pay D. Bonuses correct answer A
  7. Which of the following can a employer refuse to do? A. Withhold an IRS levy B. Withhold Support deduction C. Change their name until a new social security card, with new name is presented 0 correct answer C
  8. A new hire does not submit payroll a W-4 by their first payday, they are married and have three children What withholding status do you use when calculating his withholding? A. Married with 3 allowances B. Married with 0 allowances C. Single with 4 allowances D. Single with 0 allowances correct answer D
  1. Employers are assigned one of two depositor status classifications for Payroll Tax Deposit Rules Which of the following is correct? A. Quarterly or monthly B. Monthly or weekly C. Monthly or semiweekly D. Monthly or semimonthly correct answer C
  2. What is the lookback period for calendar year 2012 for Payroll Tax Deposit Rules? A. July 1, 2010 - June 30, 2011 B. January 1, 2010 - December 31, 2010 C. Company previous fiscal year D. Lookback period is 12 months correct answer A
  3. What amount of employment tax liability must an employer reach before the one-day deposit rule is in effect? A. $25,000 or more B. $50,000 or more C. $100,000 or more D. $150,000 or more correct answer C
  4. The shortfall rule allows an employer to deposit what percentage of their payroll tax liability without a penalty? A. Must be 100% B. 98% C. 95% D. 90% correct answer B
  5. Which of the following form is use to report backup withholding? A. Form 940 B. Form 941 C. Form 941c D. Form 945 correct answer D
  6. What happens when a monthly depositor accumulates $100,000 in tax liability on any day during a month? A. Is a one day depositor the rest of the year B. Remains a monthly depositor, but need to deposit on the next business day anytime accumulates $100,000 in tax liability C. Becomes semiweekly for the rest of the year D. Becomes semiweekly for the rest of current year and entire next calendar year, also needs to deposit on next business day correct answer D
  7. How long must an employer keep undeliverable copies of employee's Form W-2? A. Three years B. Four years C. Five years D. Seven years correct answer B
  8. An employee is terminated on 7/1/12 The following week a request in writing was received requesting his 2012 Form W-2 How long does the employer have to send it out? A. 10 days of the request B. 20 days of the request C. 30 days of the request D. January 31, 2013 correct answer C
  1. Who would use Form 941-M? A. Semiweekly depositors B. Monthly depositors C. Both A and B D. Employers that fail to withhold or deposit taxes or file returns on time correct answer D
  2. Which of the following is used to deposit withheld federal income and employment taxes? A. Form 8809 B. Form 941 C. Form 940 D. EFTPS correct answer D
  3. All 2012 Copy A of Form W-2 and Form W-3 must be filed with the SSA by what date following the calendar year in which the wages were paid? A. January 31 B. By the end of February C. March 31 D. April 1 correct answer B
  4. If an employer mailed their payroll tax deposits through the US Postal Service, the deposits would be considered timely if postmarked at least how many days before due date? A. One day B. Two days C. Has to be receive by due date or penalties will apply D. As long as it has the due day or earlier no penalties apply correct answer B
  5. When are employers required to mail copies of Form W-4 to the IRS? A. Claims more than 10 withholding allowances B. Claims exempt from withholding C. IRS request it in writing D. Claims 10 withholding allowances and is single correct answer C
  6. When is an employee not subject to FICA tax? A. Over age of 70 B. Over age of 65 C. Over age of 59 1/2 D. None of the above correct answer D
  7. What does OASDI stand for? A. Old Age Survivors and Disability Insurance B. Old Age Survivors and Disability Income C. Old Age Severance and Disability Insurance D. Old Age Severance and Disability Income correct answer A
  8. Non qualified plans go in which box on the Form W-2? A. Box 8 B. Box 9 C. Box 10 D. Box 11 correct answer D
  9. In which box on Form W-2 should allocated tips be reported? A. Box 1 B. Box 1, 3 and 5 C. Box 1, 5 and 7 D. Box 8 correct answer D