CPP Practice Exam 11

The data that should be maintained on the payroll master file includes the employee's name, address, and occupation. This information is essential for accurately identifying and categorizing employees within the payroll system. It helps ensure that the correct individuals are being paid and that their employment details are up to date.

The correct answer is "appropriate training and equipment resources for staff members." The payroll department manager should ensure that the staff members have the necessary training and equipment resources to effectively carry out their job responsibilities. This is important to ensure accuracy and efficiency in processing payroll and to avoid any errors or delays. Providing appropriate training and equipment resources also helps to enhance the skills and productivity of the staff members, ultimately benefiting the overall performance of the payroll department.

The correct answer is 8. According to the Fair Labor Standards Act (FLSA), employees who work more than 40 hours in a workweek are eligible for overtime pay at a rate of one and a half times their regular hourly rate. Since the question asks about a biweekly period, we need to divide the total number of hours worked by 2. Therefore, if the employee is an assembly line worker and has worked 16 hours in the given biweekly period, only 8 of those hours would be eligible for overtime pay at time and a half.

The question asks how many hours must be paid at the overtime rate of pay for a biweekly period. However, the information provided does not mention anything about overtime hours or the overtime rate of pay. Therefore, it can be concluded that no hours need to be paid at the overtime rate of pay for this biweekly period.

The disposition of unclaimed wages is determined by state law only. This means that each state has its own regulations and procedures for handling unclaimed wages, and employers must comply with these laws in order to properly distribute or report unclaimed wages. Federal law does not specifically address the disposition of unclaimed wages, so it is not a determining factor in this matter.

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In non-credit reduction states, employers who pay their state unemployment taxes on time can deduct up to 5.4% when calculating their FUTA tax payments.

The total amount reported in box 10, "dependent care benefits," is $4,980.

Sick pay under a definite plan or system is not subject to mandatory federal income tax withholding when paid by a third-party insurance provider because it is considered an insurance benefit. In this case, the employer has contracted with a third-party insurance provider to provide sick pay benefits to their employees. Since the payment is made by the insurance provider and not directly by the employer, it is not subject to federal income tax withholding.

A self-insured workers' compensation plan is a type of insurance arrangement where the employer takes on the financial responsibility for providing compensation to employees who are injured or become ill on the job. In this type of plan, the employer funds the workers' compensation payments directly, rather than purchasing a traditional insurance policy. This allows the employer to have more control over the claims process and potentially save money on insurance premiums.

Under NACHA rules, employers are advised to retain a copy of the employee's written authorization for direct deposit for at least 2 years. This is important because it serves as proof that the employee has given consent for direct deposit and can be used as evidence in case of any disputes or investigations. Retaining the authorization for this period ensures that the employer has the necessary documentation to support the direct deposit transactions made during that time.

An in-house developed system offers several advantages such as scheduling flexibility, security, and control of the system. However, user groups are not an advantage of having an in-house developed system. User groups typically refer to a feature or functionality that allows users to be organized into specific groups with different access levels or privileges. While this can be a useful feature in many software systems, it is not necessarily an advantage specific to in-house developed systems.

Travel to a convention after normal working hours generally does not represent compensable time under the FLSA because it is considered personal time and not directly related to work duties or responsibilities. Compensable time refers to the hours for which an employee must be paid, and in this case, the travel to a convention is outside of normal working hours and is not considered work-related.

The regular compensation due to the employee for the final pay period can be calculated by dividing the annual salary by the number of pay periods in a year. Since the employee is paid semi-monthly, there are 24 pay periods in a year. Therefore, the regular compensation due would be $24,000/24 = $1,000 per pay period. Since the employee was terminated with 3 workdays remaining in the month, the final pay period would only include the compensation for those 3 workdays, which would be 3/10 * $1,000 = $300. However, the question asks for the regular compensation due, so we need to subtract the compensation for the remaining workdays from the total regular compensation. Therefore, the correct answer is $1,000 - $300 = $700.

Employee deferrals under section 401(k) are subject to social security, Medicare, and FUTA taxes. This means that when an employee contributes to their 401(k) plan, they are still required to pay these taxes on their contributions. These taxes are used to fund programs such as Social Security, Medicare, and unemployment benefits. Therefore, even though the employee is deferring a portion of their income into their retirement savings, they are still responsible for paying these taxes.

The total amount that must be reported in box 14 is $0. This means that there are no additional amounts or earnings that need to be reported in this box.

If a company has a debit balance in a liability account at the end of an accounting period, it means that the company has paid more money to a third party than what was withheld from the employee. This suggests that the company has overpaid its obligations and has a liability to the third party for the excess amount paid.

The proper handling of a stop payment includes cancelling the payment in the payroll system, notifying the bank account reconciliation employees, and documenting the reason for the transaction. However, reversing the direct deposit is not a step that needs to be taken in the process of handling a stop payment.

According to the FLSA rules for health care professionals, they are entitled to receive overtime pay at a rate of one and a half times their regular hourly rate for any hours worked beyond 40 in a workweek. Since the question asks for the number of hours that would be paid at time and a half for a biweekly period, we need to calculate the total number of hours worked in that period. Assuming the employee works 8 hours per day, 5 days a week, for a total of 40 hours in a week, the biweekly period would consist of 80 hours. Since all 80 hours fall within the regular 40-hour workweek, there are no hours that would be paid at time and a half. Therefore, the correct answer is 0.

Under the Fair Labor Standards Act (FLSA), employees in hospitals qualified under special provisions have a unique method of calculating overtime. In a given biweekly schedule provided:

Week I: 40 hours worked

Week II: 48 hours worked

Total hours worked over two weeks: 88 hours.

Under the FLSA for hospitals, overtime is calculated for any hours worked over 80 in a 14-day period. Since the employee worked 88 hours in this period, 8 hours must be paid at the overtime rate. So, the answer is 8 hours.

Under the claim-of-right rule, a salary overpayment that is discovered by the employer in the tax year following the year of overpayment can be deducted from wages on an after-tax basis. This means that the employer can deduct the overpayment from the employee's wages after taxes have been calculated and withheld. This is because the employee has already received the overpayment and does not have a right to keep the excess amount. Therefore, the employer can recover the overpayment by deducting it from the employee's wages on an after-tax basis.

Disability insurance is allowable in a 125 plan. A 125 plan, also known as a cafeteria plan, is an employee benefit plan that allows employees to choose from a variety of pre-tax benefits. Disability insurance provides income replacement in the event that an employee becomes disabled and is unable to work. This benefit helps to protect employees financially in case of unexpected disability and is therefore allowable in a 125 plan.

The pretax contribution to the 401(k) qualified plan is reported on the 2009 W-2 in Boxes 3/5, box 12, and box 13 under the category of "retirement plan."

The amount reported in box 12 is D 24,582 and the code used is not provided.

The total amount reported in box 3, Social Security wages, for these employees is $321,100.