CPP Practice Exam 4

Rewarding team members for their collective successes is a technique for positive motivation because it acknowledges and reinforces the achievements and contributions of the entire team. By providing rewards, such as bonuses, recognition, or incentives, team members are encouraged to continue working together towards common goals and to strive for excellence. This technique fosters a positive and supportive team culture, boosting morale and motivation among team members. It also promotes a sense of unity and collaboration, leading to increased productivity and overall success.

Targeting training is the best way of addressing an employee's poor task performance because it focuses on improving the employee's skills and knowledge related to their job responsibilities. By providing targeted training, the employee can acquire the necessary skills and knowledge to perform their tasks effectively, leading to improved performance. Reassigning to another department, relocating physical work space near the supervisor, or assigning to an autocratic leader may not directly address the issue of poor task performance and may not result in the employee acquiring the necessary skills and knowledge to improve their performance.

Beth is enrolled in the company's cafeteria plan and she adopts a child. The change in family status, specifically the adoption of a child, allows Beth to request a change in her election under the cafeteria plan. Therefore, Beth may change her election due to the change in family status.

NACHA, the National Automated Clearing House Association, governs procedures regarding employers' payment of wages by direct deposit. NACHA is responsible for establishing and maintaining the rules and regulations for the ACH (Automated Clearing House) network, which is used by employers to electronically transfer funds to their employees' bank accounts. NACHA ensures the security and efficiency of these transactions, as well as compliance with relevant laws and regulations.

Preparing an agenda and distributing it prior to the meeting is important when planning a problem-solving meeting because it helps to ensure that all participants are aware of the topics that will be discussed and can come prepared with any necessary information or materials. It also helps to keep the meeting focused and on track, ensuring that all relevant issues are addressed and that the meeting stays within the allotted time frame. By providing the agenda ahead of time, participants can also have the opportunity to suggest any additional topics or items that they feel should be included.

A discriminatory plan in the context of fringe benefits refers to a plan that disproportionately favors the highly paid employees. This means that the benefits provided by the plan are biased towards those employees who earn higher salaries or wages. This can create inequality within the organization, as it may exclude or provide fewer benefits to lower-paid employees. Discriminatory plans can lead to dissatisfaction and demotivation among the lower-paid employees, who may feel undervalued and unfairly treated compared to their higher-paid counterparts.

The correct answer is I-9. The Immigration Reform and Control Act mandates that employers and employees must complete the I-9 form. This form is used to verify the identity and employment eligibility of individuals hired for employment in the United States. It requires employees to provide documentation such as a passport or driver's license and a social security card or birth certificate. Employers must carefully review and verify the information provided by the employee on the form to ensure compliance with immigration laws.

Service bureaus and business process outsourcers are both terms used to describe companies that provide services to other businesses. These services can include tasks such as data entry, payroll processing, customer service, and other administrative functions. Both terms refer to the outsourcing of specific business processes to external companies, allowing the client company to focus on its core competencies. Therefore, the correct answer is "Business process outsourcer."

In the first monthly accounting period of a company's fiscal year, the asset and liability accounts reflect the prior year's ending balance. This means that the balances of these accounts are carried forward from the previous year and are not reset to zero. This allows for the continuity of financial information and ensures that the company starts the new fiscal year with accurate records of its assets and liabilities.

The task of reconciling the payroll bank account is typically not included in the job description of a payroll specialist. This task is usually performed by a separate accounting or finance department to ensure proper financial controls and separation of duties. The job description of a payroll specialist typically focuses on tasks directly related to processing payroll, such as preparing requisitions for deductions, entering employee tax information, and verifying authorization on change documents.

The best implementation of internal control is to have payroll master file changes reviewed by human resources. This ensures that any changes made to the payroll master file, such as increases or new hires, are properly authorized and accurate. Having human resources review these changes helps to prevent any potential errors or fraudulent activity in the payroll system.

Documenting the new software would not be included in the planning stage of a system implementation because documenting the new software is typically done after the planning stage. In the planning stage, the focus is on determining the resources needed for the project, creating a task list, and defining the project's goals and objectives. Documenting the new software would come later in the implementation process, once the planning stage is complete.

Preparing a needs analysis would be the first step when selecting a new payroll system. This involves assessing the current payroll system, identifying the requirements and objectives of the new system, and determining the specific needs of the organization. By conducting a needs analysis, the organization can better understand what functionalities and features are necessary in a new payroll system, which will then inform the subsequent steps such as releasing requests for proposal (RFPs), scheduling product demonstrations, and talking to users of the systems being considered.

Compliance under Section 404 of Sarbanes Oxley requires that a company's internal controls over financial reporting are tested and evaluated by an independent auditor. This includes reviewing and validating payroll transactions by the internal audit department to ensure accuracy and prevent fraud or errors.

This employer is likely to be engaged in the health care industry because it is common for employees in this industry to work long hours and potentially exceed the standard 40-hour workweek. Overtime pay for hours worked over 80 in a biweekly period suggests that the employer is aware of and compliant with the specific regulations and requirements for overtime in the health care sector.

Accountability is a crucial aspect of management that cannot be delegated to subordinates. It is the obligation of a manager to take responsibility for the actions and decisions made by their team. Delegating accountability would undermine the manager's role as the one ultimately responsible for the outcomes and performance of the team. Therefore, accountability should always remain with the manager and cannot be delegated to subordinates.

The correct answer is mileage while moving from the old residence to the new. This expense reimbursement is excludable from gross income because it is directly related to the moving process and meets the requirements for exclusion under the tax code.

The income statement is the correct answer because it is the financial statement that evaluates the performance of a business by matching its revenue and related expenses for a specific accounting period. It provides a summary of the company's revenues, expenses, gains, and losses, allowing stakeholders to assess the profitability and financial health of the business. The income statement is also known as the profit and loss statement or statement of earnings.

The correct entry to record a payment of the employer's share of FICA tax is to debit the payroll tax expense and credit cash. This entry reflects the expense incurred by the employer for FICA taxes and the corresponding decrease in cash due to the payment made.

This employee would not be paid any additional amount for each hour in excess of 37 but less than 40 in the workweek. This is because the question does not mention any overtime pay or any other additional compensation for working beyond the regular scheduled hours. Therefore, the correct answer is $0.

The correct answer is to report the payment in box 1 of Form W-2. This is because box 1 of Form W-2 is used to report wages, tips, and other compensation that are subject to federal income tax withholding (FITW). Since the question states that the payment is exempt from FITW, it would not be correct to report it in box 1 of Form W-2. Instead, it should be reported in a different box or form that is appropriate for exempt payments.

The term used to describe traditional theories and perceptions is "paradigm". A paradigm refers to a set of beliefs, assumptions, and concepts that shape the way people think and understand the world around them. It represents a framework or model that guides scientific or intellectual inquiry. In this context, paradigm is the most suitable term to describe traditional theories and perceptions.

The common-law test is used to determine whether a worker is an employee or an independent contractor. If a worker fails the common-law test, it means that they do not meet the criteria to be classified as an independent contractor. This could be because they do not have control over their work, they are economically dependent on the employer, or they do not have the opportunity for profit or loss. Therefore, if a worker fails the common-law test, the employer may classify them as an employee instead of an independent contractor.

The correct answer is 1042-S. The 1042-S form is used to report wages paid to nonresident aliens who are exempt from federal income tax under a treaty. This form is specifically designed for reporting income that is subject to withholding under Internal Revenue Code Section 1441. It is important to use the correct form to accurately report and document the wages paid to nonresident aliens who qualify for tax exemption under a treaty.

The independent contractor being a foreign person suggests that they are not a U.S. citizen or resident alien. In this case, the contractor would most likely complete Form W-8BEN, which is used by non-U.S. individuals to claim foreign status and certify their eligibility for treaty benefits. Form W-7 is used by individuals to apply for an Individual Taxpayer Identification Number (ITIN). Form W-4 is completed by employees to indicate their withholding preferences, and Form W-9 is used to provide a taxpayer identification number to a requester.