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CPP-Remote Sample Questions Answers

Questions 4

An employee covered by group health insurance at the time his employment terminates to return to school is entitled to CORBA continuation rights for:

Options:

A.

24 months

B.

30 months

C.

18 months

D.

12 months

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Questions 5

Under the FLSA, employees working in the New England states for a product distributor are entitled to which of the following overtime pay benefits?

Options:

A.

Overtime is paid for all hours worked over 8 per day

B.

Compensatory pay is allowed for hours over 80 in a biweekly pay period

C.

Double time is paid for work on holidays

D.

Overtime is paid for hours worked over 40 in a work week

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Questions 6

An employer may exclude a business reimbursement from income when the employee's expenses meet which of the following requirements?

Options:

A.

Reimbursements are made with regular payroll

B.

Expenses are business-related, substantiated, and excess advances are returned timely.

C.

Expenses are substantiated and excess advances are returned

D.

Expenses are business-related, substantiated, and excess advances are retained for future travel.

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Questions 7

Nice Guys Inc. has a short-term disability plan, provided by a third-party insurance company, for its factory workers. Employees do not pay for this benefit. Roberta received $400 a month for four months during the six-month coverage period. How did the third-party payer tax Roberta's disability payments?

Options:

A.

No tax was withheld on any payments

B.

Federal Income tax was withheld on $400 in each of the four months

C.

Social Security and Medicare taxes were withheld on the value of the premium paid by the employer

D.

Social Security and Medicare taxes were withheld on $400 in each of the four months.

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Questions 8

Which of the following employee's wages is likely to be subject to FUTA?

Options:

A.

A parent employed by his or her child

B.

A spouse employed by spouse

C.

A child under age 21 employed by parent

D.

A statutory employee

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Questions 9

Transactions are recorded in chronological order into books of original entry called:

Options:

A.

registers

B.

journals

C.

vouchers

D.

invoices

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Questions 10

Under the claim-of-right rule, a salary overpayment that is discovered by the employer in the tax year following the year of overpayment:

Options:

A.

Can be deducted on a pretax basis from regular wages

B.

Cannot be deducted from the employee's wages because employee has a right to the payment

C.

Can be deducted from wages on an after-tax basis

D.

Cannot be deducted from wages at all

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Questions 11

FLSA coverage does not apply under which of the following conditions?

Options:

A.

Employees are minors under the age of 18

B.

Employees are paid $2.13 per hour

C.

Employer and employees are not engaged in interstate commerce

D.

All employees are part time workers

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Questions 12

Which of the following would not be included in the Needs Analysis stage of a system evaluation?

Options:

A.

Review of the current system

B.

Creating a current cost model

C.

Defining the company's technical direction

D.

System testing

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Questions 13

A single company of a group of related companies can file the Forms W-2 and 941 under it's EIN for all employees of all the related companies, whether or not the employees are concurrently employed, under which of the following reporting options?

Options:

A.

Power of attorney

B.

Common paymaster

C.

Establishment reporting

D.

Reporting agent

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Questions 14

Which of the following records MUST be kept for four years?

Options:

A.

OSHA records

B.

time cards

C.

voided payroll checks

D.

hours worked

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Questions 15

Under the FLSA, how many hours would be paid at time and one half for the following biweekly period, assuming that the employee is an garment worker?

Options:

A.

0

B.

0.5

C.

8

D.

8.5

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Questions 16

Sick pay under a definite plan or system is NOT subject to mandatory federal income tax withholding when paid:

Options:

A.

From a disability retirement plan

B.

From an employer's self-insured plan

C.

By an agent of the employer

D.

By a third-party insurance provider

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Questions 17

Bass Biting Company operates bait, tackle and boat sales store employing 12 full time clerks and salespeople in addition to the owner and his family members. Occasionally, Bass Biting assigns special work to individuals other than its regular employees and family members. Bass Biting engaged a carpenter, Jim to build a boat dock so that customers could access the shop via boat. Jim has several docks in progress for other local merchants. Bass Batting’s dock took 4 days to build, 13 hours each day. Bass Biting paid Jim $500 for 4 days' work. Calculate overtime due Jim under FLSA.

Options:

A.

$57.72

B.

$557.44

C.

$0

D.

$173.04

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Questions 18

The entry to record a salary advance to an employee is:

Options:

A.

Debit cash, credit accounts receivable

B.

Debit accounts receivable, credit cash

C.

Debit salary expense, credit cash

D.

Debit salary expense, credit wages payable

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Questions 19

An advantage of client/server technology for payroll is:

Options:

A.

Maintenance fees from the vendor are eliminated

B.

Fewer programmers are required to maintain the payroll

C.

Time required to balance a payroll is reduced.

D.

Programs and database need not be stored on the mainframe

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Questions 20

Under which of the following situations may an employee change an election made under a 125 cafeteria plan within the plan year?

Options:

A.

Employee receives a salary increase

B.

Employee is demoted

C.

Employee transfers to another department

D.

Employees divorces

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Questions 21

If a company is examining the feasibility of purchasing an integrated human resource information system (HRIS), what approach is best?

Options:

A.

Instruct each user area to conduct an independent search for a software vendor

B.

Assign the search task to the information systems staff who have prior experience in each HRIS discipline

C.

Assemble a team of information system staff and potential users to conduct the search

D.

Authorize the company's payroll manager to select the vendors from which to choose

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Questions 22

Who of the following most likely is an independent contractor?

Options:

A.

A repairman who is called periodically to perform maintenance on the PC's of a dental office.

B.

A person normally employed in the mail room who comes in after hours to clean the offices.

C.

A commissioned salesman who works from his home.

D.

A retiree called back to work on a temporary basis

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Questions 23

An example of procedure is:

Options:

A.

Employees receive their hourly rate of pay for hours spent in jury service

B.

Overtime is paid at double time for work performed on Sundays

C.

Employees may take unused vacation from the current year in the first quarter of the subsequent year

D.

Time cards are filed by the cost center in the records room

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Questions 24

Under the special accounting rule, employers may treat benefits earned near the end of the yare as having been earned in the subsequent year for tax and reporting purposes. Benefits for which month(s) may be treated as having been earned in the following tax year?

Options:

A.

November and December

B.

The last 3 months of the year

C.

The last 6 months of the year

D.

December only

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Questions 25

A service company sends employees overseas on assignments that last no more than 4 months at a time. Which of the following is true with respect to the taxation of those employees?

Options:

A.

The are subject to U.S. Taxation on their pay only while in the United States

B.

They qualify for an income tax exemption under the "physical presence test"

C.

They are subject to U.S. taxation on their pay for the time in and out of the country

D.

They qualify for income tax exclusion under the "bona fide residence test"

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Questions 26

Under FLSA, how many hours must be paid at the overtime rate of pay for the following biweekly period:

Represents 8 hours of sick pay leave:

Options:

A.

10

B.

16

C.

2

D.

0

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Questions 27

The BEST reason for tracking pay-related problem statistics is to enable Payroll to:

Options:

A.

justify more resources to handle more problems

B.

apologize to clients in a more professional manner

C.

identifies root causes and take actions to prevent similar recurrences

D.

direct problems to those who caused the problem

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Questions 28

To build morale and motivate staff, a manager must:

Options:

A.

delegate accountability to staff members

B.

gives good reviews and raises

C.

be sincere and specific with praise

D.

reward "stars" and promote competition within the team

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Questions 29

The annual "bright-line" salary test to meet the definition of exempt under the FLSA is:

Options:

A.

$90,000

B.

$100,000

C.

$50,000

D.

$45,500

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Questions 30

Employers in non-credit reduction states that pay their state unemployment taxes on time can deduct up to what percentage in calculating their FUTA tax payments?

Options:

A.

0.8%

B.

6.2%

C.

5.4%

D.

4.5%

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Questions 31

The proper entry to record the payment of accrued wages is:

Options:

A.

Debit cash, credit salary expense

B.

Debit accrued wages, credit cash

C.

Debit cash, credit accrued wages

D.

Debit salary expense, credit accrued wages

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Questions 32

Which of the following represents the best way of addressing an issue of an employee's poor task performance?

Options:

A.

Relocating physical work space near the supervisor

B.

Reassignment to another department

C.

Targeting training

D.

Assigning to an autocratic leader

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Questions 33

The general term that describes the ability for employees to make changes to certain data in their own records within the payroll or HR system is called:

Options:

A.

Employee empowerment

B.

Enabled systems

C.

Employee self-service

D.

Extranet

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Questions 34

Employee's regular monthly salary is $950. Employee is scheduled to work 37 hours per week. Under the FLSA, how much would this employee be paid for each hour in excess of 37 but less than 40 in the workweek?

Options:

A.

$5.93

B.

$6.42

C.

$0

D.

$5.48

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Questions 35

Penalties for failure to make timely deposits are determined by:

Options:

A.

a four-tiered penalty structure based on the number of days the deposit is late

B.

15% of the undeposited amount with a maximum of $100,000

C.

a flat rate of 10% for late deposits

D.

5% of the undeposited amount with a maximum of $100,000

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Questions 36

One of the key concepts in total quality management is:

Options:

A.

Management by "walking around"

B.

Employees are willing to accept responsibility

C.

Focus on customer satisfaction

D.

Frequent inspection of every phase of a production cycle

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Questions 37

Sally's department was scheduled to work from 8:00 a.m. until 5:00 p.m. It was announced to all employees that a severe winter storm was expected to reach the city between 4:00 p.m. and 5:00 p.m. Employees of Sally's department asked if they, like most other departments, would be allowed to leave work at 3:00 p.m. to avoid being caught in the storm. Sally was sympathetic, but after much discussion denied the request, stating that the policy was clear that employees were to remain on duty until 5:00 p.m. Which of the following management styles is Sally demonstrating?

Options:

A.

Diplomatic

B.

Bureaucratic

C.

Autocratic

D.

Participative

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Exam Code: CPP-Remote
Exam Name: Certified Payroll Professional
Last Update: Apr 17, 2024
Questions: 249
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