CPP Practice Exam 7

The employees of Flawless Flower Shops must be compensated with overtime pay for any hours worked over 40 in a workweek. This means that if an employee works more than 40 hours in a single week, they are entitled to receive additional pay for those extra hours. However, the answer does not mention any specific payment rate or calculation for the overtime pay.

Providing examples of the performance issues is a reasonable approach when discussing an employee's poor performance because it allows for clear communication and understanding of the areas that need improvement. By providing specific examples, the employee can better comprehend the issues at hand and work towards addressing them effectively. This approach also helps in avoiding generalizations and ensures that the feedback is constructive and actionable.

The correct answer suggests that the online payroll system alerts the payroll specialist when an employee has a birthdate of 1996 or after. This indicates that the employee may have been hired in violation of child labor laws, as individuals born in 1996 or after would be under the legal working age in most jurisdictions.

Minors under the age of 18 are restricted from performing jobs that are considered hazardous by the U.S. Department of Labor. This means that certain types of work, such as operating heavy machinery or working with dangerous chemicals, are not allowed for individuals under 18 years old. This restriction is in place to protect the safety and well-being of young workers.

The most appropriate response or action for the payroll department representative is to record the caller's name, employee number, and telephone number. They should also ask the caller to provide an analysis of the payroll check, including the reasons they believe it is incorrect. The representative should then provide a specific time and date for returning the call with a response to the inquiry. This ensures that all necessary information is collected and that the caller's concerns will be addressed in a timely manner.

Field level access restriction contributes to the security of the payroll system by limiting the access and control over sensitive data at a granular level. It ensures that only authorized individuals have the ability to view, modify, or delete specific fields within the system. This helps prevent unauthorized access, data breaches, and potential misuse of payroll information, thereby enhancing the overall security and confidentiality of the payroll system.

Crafting policy for employee benefits would not be included in the job description of a payroll specialist because their main responsibility is to ensure accurate and timely payment of employees' wages. Crafting policy for employee benefits falls under the domain of HR or benefits specialists who focus on designing and implementing employee benefit programs.

The State labor department would most likely enforce rules governing the number of days following the close of the payroll period that employees must be paid. This is because the State labor department is responsible for overseeing and enforcing labor laws and regulations within the state, including those related to employee wages and payment. They would ensure that employers comply with the requirement to pay employees within a specified timeframe after the payroll period ends.

A company may designate its fiscal year to cover 12 months that differ from the calendar year. This means that a company is not required to align its fiscal year with the calendar year and has the flexibility to choose a different 12-month period for financial reporting purposes.

An example of a system edit is when an on-line message alerts the user that a 401(k) deduction percent higher than the company allows was entered. This indicates that the system is programmed to detect and notify the user when certain inputs do not meet the predefined criteria or rules set by the company. In this case, the system identifies that the entered deduction percent exceeds the allowed limit and prompts the user to make the necessary correction.

A paradigm shift refers to the process of abandoning traditional theories and perceptions in favor of new ones. It involves a fundamental change in the way people think and understand a particular subject or concept. This term is often used to describe a significant transformation in scientific or philosophical theories that challenge established beliefs and lead to a new understanding of the world.

An HRIS that has one database with functionality pertaining to multiple applications is often called an integrated system. This means that all the different applications within the HRIS are connected and share data in a seamless manner. This integration allows for efficient and effective management of HR processes and information, as it eliminates the need for multiple standalone or segregated systems. With an integrated system, HR professionals can easily access and analyze data from various applications, such as payroll, recruitment, and performance management, in one centralized location.

The correct answer is that employees are subject to U.S. taxation on their pay for the time in and out of the country. This means that even when they are overseas on assignments, they are still required to pay taxes to the U.S. government on their income. The fact that the assignments last no more than 4 months does not exempt them from this taxation.

The most logical order of events in a system implementation is to first assess the feasibility of the project, then conduct an evaluation to determine the specific requirements and goals. After that, the development phase can begin, followed by testing to ensure the system functions properly. Therefore, the correct order is feasibility, evaluation, development, and testing.

Form 5500 reporting is required for ESOPs (employee stock ownership plans). This is because ESOPs are retirement plans that invest primarily in employer stock, and they are subject to certain reporting and disclosure requirements under the Employee Retirement Income Security Act (ERISA). The other stock plans mentioned, such as NSOs (nonincentive stock options), ISOs (incentive stock options), and restricted stock, do not typically require Form 5500 reporting as they are not considered retirement plans under ERISA.

The correct answer is to debit cash and credit accounts receivable because when the employee repays the salary advance with a personal check, it increases the cash balance (debit) and decreases the accounts receivable balance (credit) as the outstanding amount is being paid off.

The correct answer is 4. The payroll register should be retained for a period of not less than four years for IRS purposes. This is because the IRS requires employers to keep records of their payroll for a certain period of time in order to ensure compliance with tax laws and regulations. By keeping the payroll register for at least four years, employers can provide documentation and evidence of their payroll activities if requested by the IRS for audits or investigations.

The correct answer is 20%. This means that in 2009, the rate of withholding on qualified pension distributions made directly to employees was 20%. This implies that when employees received their pension distributions, 20% of the amount was withheld for taxes.

When an employee repays a salary advance by personal check, the company receives cash from the employee. Therefore, the company should debit cash to record the increase in cash and credit accounts receivable to reduce the amount owed by the employee. This entry reflects the repayment of the advance and updates the company's financial records accurately.

A cross-functional work team is an important element of business process reengineering. Business process reengineering involves redesigning and improving business processes to achieve better efficiency, productivity, and quality. A cross-functional work team consists of individuals from different departments or areas of expertise who come together to collaborate and work towards a common goal. In the context of business process reengineering, a cross-functional work team is crucial as it brings together diverse perspectives and knowledge to identify and eliminate inefficiencies in existing processes, and to design and implement new and improved processes.

A statutory employee's pay is subject to Social Security, Medicare, and FUTA taxes. These taxes are deducted from the employee's paycheck to fund various government programs. Social Security taxes fund retirement, disability, and survivor benefits, while Medicare taxes fund healthcare for individuals aged 65 and older. FUTA taxes fund unemployment benefits for workers who have lost their jobs. Therefore, the correct answer is Social Security, Medicare, and FUTA.

The correct answer is $10,000. This is because federal tax is withheld from distributions from qualified retirement plans, and the amount withheld is based on the retiree's age and the amount of the distribution. In this case, the retiree is 65 years old and the distribution is $50,000, so $10,000 is withheld for federal taxes.

Form 941 is a quarterly tax form that employers use to report income taxes, social security tax, or Medicare tax withheld from employee’s paychecks. It also reports the employer’s portion of social security or Medicare tax.



The due dates for each quarter are as follows:

Q1 (January, February, March): Due by April 30

Q2 (April, May, June): Due by July 31

Q3 (July, August, September): Due by October 31

Q4 (October, November, December): Due by January 31



However, if you made deposits on time and in full payment of your taxes for the quarter, you have 10 more days after the due date to file Form 941. So, for the second quarter (April, May, June), if all taxes were paid on time, the final due date for Form 941 is August 10.

If the taxes have not been deposited on time and in full, the deadline remains July 31.

The correct answer is to debit accounts receivable and credit cash. This entry is made when an employee receives an advance on their salary. By debiting accounts receivable, it reflects that the employee owes the company for the advance, and by crediting cash, it shows that the company has paid out the advance amount. This entry does not involve salary expense or wages payable, as those accounts would be used when recording the actual payment of the employee's salary.

When an employee repays a salary advance, it is recorded as a decrease in the salary expense because the amount is being returned. The accounts receivable is credited because the employee is repaying the advance, which was initially recorded as an increase in accounts receivable. This entry reflects the reversal of the initial entry made when the salary advance was given.