CCP Practice Exam 5

25 Questions | Total Attempts: 459

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CCP Quizzes & Trivia

This is a practice quiz to help you prepare for the Certified Payroll Professional certification. The quiz is based on a bank of 25 multiple choice questions that reveal the correct answer before you move on to the next question. The questions and their associated answers are randomized every time you take the quiz to avoid pattern development. Questions requiring calculations that change from year to year have been omitted. Good luck as you pursue this goal. I hope this helps you prepare. Inspired by my lovely wife as she pursued this goal as well.


Questions and Answers
  • 1. 
    A security quard workd the regular evening shift on Christmas Day.  Under the FLSA, the employer must pay the employee:
    • A. 

      Time and one half for all hours worked

    • B. 

      Holiday pay plus time and one half

    • C. 

      Double time

    • D. 

      Minimum wage

  • 2. 
    In the lookback period,  Company A incurred payroll tax liabilities of $182,404.92.  Wages are paid Friday, October 15.  The total federal tax deposit is $2,500.  The deposit would be due on:
    • A. 

      Monday, October 18

    • B. 

      Wednesday, October 20

    • C. 

      Friday, October 22

    • D. 

      Monday, November 15

  • 3. 
    Technology that allows managers to approve or change data in the records for which they are repsonsible is called:
    • A. 

      Middleware

    • B. 

      Manager self-service

    • C. 

      Prototyping

    • D. 

      Outsorucing

  • 4. 
    A negative balance in the union dues deduction account indicates which of the following?
    • A. 

      Initiation fees were included in deductions

    • B. 

      Dues have been deducted in excess of remittance to the union

    • C. 

      Employee deductions have exceeded amounts remitted to the union

    • D. 

      Dues have been deducted and remitted to the union at the same time

  • 5. 
    Which of the following is an example of a system production control technique?
    • A. 

      Payroll manager meets with operations departments to discuss year-end procedures

    • B. 

      Tax penalties incurred by company are handled by the accounting department

    • C. 

      Department documentation is maintained on-line

    • D. 

      Payroll department members' performance reviews are conducted after Forms W-2 are produced each year

  • 6. 
    Antoine is a sole proprietor who employs several specialists who custom paint cars in his shop.  On weekends, a friend of Antoine's who ownd a cleaning service cleans Antoine's shop and storage areas and charges Antioine by the hour for his services. Which of the following best describes the payment for the cleaning services provided by Antoine's friend?
    • A. 

      The payment is wages paid to an employee

    • B. 

      The payment is non-employee compensation paid to an independent contractor

    • C. 

      The payment is a nontaxable payment of detached generosity

    • D. 

      The payment is a payment made to a statutory employee

  • 7. 
    Antoine is a sole proprietor who employs several specialists who custom paint cars in his shop.  On weekends, a friend of Antoine's who ownd a cleaning service cleans Antoine's shop and storage areas and charges Antioine by the hour for his services. If Antoine pays his friend by check rather than cash, which of the following describes the payment for the cleaning service provided by his friend?
    • A. 

      The payment is wages paid to an employee

    • B. 

      The payment is non-employee compensation paid to an independent contractor

    • C. 

      The payment is a nontaxable payment of detached generosity

    • D. 

      The payment is a payment made to a statutory employee

  • 8. 
    It is discovered in March 2009 that an employee's Social Security number was reported incorrectly on the employee's 2008 Form W-2.  The employer is required to:
    • A. 

      Send a letter notifying the employee of the error

    • B. 

      File a Form 941-X with the IRS

    • C. 

      File a Form W-2c with the SSA

    • D. 

      File a Form 941c with the IRS

  • 9. 
    Scalability describes the attribute of a computer environment to:
    • A. 

      Print output in duplex

    • B. 

      Allow upgrades, expansion or reduction with little impact on processing

    • C. 

      Use telephone lines to communicate between physical locations

    • D. 

      Use video and audio

  • 10. 
    Which of the following payments are subject to federal income tax withholding?
    • A. 

      Salary advance

    • B. 

      Expense advance

    • C. 

      Group-term life over $50,000

    • D. 

      Pretax contributions to a 401(k) plan

  • 11. 
    Which of the following is an example of a system edit?
    • A. 

      Accrued payrolls are automatically reversed by the system

    • B. 

      A file is created or the bank that has the check number, amount and date

    • C. 

      A warning report displays information about employee checks if nte pay exceeds a predefined reasonable amount

    • D. 

      The payroll specialist uses a password when signing on to the system

  • 12. 
    The manager who interacts little with subordinates, making decisions without input is what type of leader?
    • A. 

      Diplomatic

    • B. 

      Bureaucratic

    • C. 

      Empathetic

    • D. 

      Autocratic

  • 13. 
    What does the following journal entry represent? Debit State Unemployment Tax Expense        $6,340         Credit Employment Tax Payable                             $6,340
    • A. 

      The accrual of state unemployment tax to one or more states

    • B. 

      A record of tax deductions

    • C. 

      The payment of state unemployment insurance tax

    • D. 

      An entry to correct tax withheld

  • 14. 
    The audit of the payroll department by a public accounting firm is reffered to as a(n):
    • A. 

      Internal audit

    • B. 

      Procedural audit

    • C. 

      External audit

    • D. 

      Official audit

  • 15. 
    Which of the following is one of the purposes of a job description?
    • A. 

      Describes the company's record retention policies

    • B. 

      States targets for direct deposit

    • C. 

      Describes the principle duties to be performed

    • D. 

      Documents guarantees of future pay increases

  • 16. 
    An employee normally earns $10 per hour.  What would the employee's gross wages be under the FLSA if he worked 48 hours in a workweek and was paid a $50 production bonus?
    • A. 

      $585.00

    • B. 

      $570.00

    • C. 

      $574.16

    • D. 

      $583.04

  • 17. 
    Under the statutory recordkeeping requirements of the IRS, the employer should retain an undeliveralbe Form W-2 for how many years?
    • A. 

      2

    • B. 

      4

    • C. 

      3

    • D. 

      5

  • 18. 
    Which of the following is an example of a system production control technique?
    • A. 

      TQM meetings are scheduled with managers

    • B. 

      Internal auditors perform random tests of gross to net calculations

    • C. 

      Batches are assigned numbers according to payroll cycles

    • D. 

      Wages owed deceased employees are paid to the employees' estates

  • 19. 
    Effective in 2009, errors in the reporting of FICA wages are reported to the IRS on which of the following forms?
    • A. 

      W-2c

    • B. 

      941-X

    • C. 

      941c

    • D. 

      940

  • 20. 
    Global Globe Productions has employees in all states.  Under federal law, which of the following statements is NOT true about Global's direct deposit program for it's employees?
    • A. 

      A participant must furnish his or her banking institution's transit routing number

    • B. 

      Global may mandate that all wages be direct deposited to the accounts of a specific bank

    • C. 

      Global must retain authorizations for debit entries for two years

    • D. 

      Global must make funds available in participants' accounts by the opening of business on payday

  • 21. 
    The maximum civil penalty for failure to file Form W-2 electronically when required to do so is:
    • A. 

      $50 per statement to a maximum of $250,000

    • B. 

      $100 per statement to a maximum of $100,000

    • C. 

      $20 per statement to a maximum of $20,000

    • D. 

      $10 per statement to a maximum of $200,000

  • 22. 
    A term for passing data between systems is:
    • A. 

      Relocate

    • B. 

      Extension

    • C. 

      Interface

    • D. 

      Continuance

  • 23. 
    Which of the following groups would most likely not be considered customers of the payroll department
    • A. 

      The employees

    • B. 

      Department managers

    • C. 

      State agencies

    • D. 

      Former spouses of employees

  • 24. 
    Use of which of the follwoing contributes to the security of the payroll system?
    • A. 

      Fiscal year reporting

    • B. 

      Virus protection

    • C. 

      Per pay cycle journal entires

    • D. 

      Cost containment

  • 25. 
    What is the advantage of building a current cost model prior to evaluating software?
    • A. 

      Providing a summary of the costs of the software being evaluated

    • B. 

      Establishing the baseline against which the cost of alternatives being considered can be compared

    • C. 

      Validating the payroll department's operating budget

    • D. 

      Allowing management to understand the new software's functional fit with the company

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