CPP Practice Exam 9

25 Questions | Total Attempts: 1067

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CPP 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. 
    Under NACHA rules, employers are advised to retain a copy of the employee's written authorization for direct  deposit for at least:
    • A. 

      4 years

    • B. 

      2 years

    • C. 

      3 years

    • D. 

      1 year

  • 2. 
    Which of the following features is LEAST likely to be considered when looking at the security of a new payroll system?
    • A. 

      A regular data back-up and storage

    • B. 

      Protection against computer viruses

    • C. 

      Limited system access

    • D. 

      System edits

  • 3. 
    Company deadlines for payroll data input documents are essential for:
    • A. 

      Timely processing of the payroll

    • B. 

      Accurate entry of data

    • C. 

      Guaranteeing that all information is processed

    • D. 

      Adequate auditing purposes

  • 4. 
    An employee earns $9 per hour and an additional 10 cents per hour for hours worked after 7:00 p.m. If an employee works from 3:00 p.m. to 11:00 p.m., Monday through Friday, what is the employee's weekly gross pay under the Fair Labor Standards Act?
    • A. 

      $360

    • B. 

      $361

    • C. 

      $362

    • D. 

      $364

  • 5. 
    The BEST reason for tracking pay-related problem statistics is to enable Payroll to:
    • A. 

      Identify root causes and take actions to prevent similar recurrences

    • B. 

      Apologize to clients in a more professional manner

    • C. 

      Direct problems to those who caused the problem

    • D. 

      Justify more resources to handle more problems

  • 6. 
    With regard to employee's reported tips, the employer must:
    • A. 

      Withhold and pay only the employees' portion of social security and Medicare taxes on tips

    • B. 

      Report taxes on tips separately when making an employment tax deposit

    • C. 

      Report tips as wages on Form W-2 and pay the employer portions of social security and Medicare taxes

    • D. 

      Report and pay the employer portion of social security and Medicare taxes on the portion of cash tips above the federal minimum wage

  • 7. 
    Transactions are recorded in chronological order into books of original entry called:
    • A. 

      Registers

    • B. 

      Vouchers

    • C. 

      Invoices

    • D. 

      Journals

  • 8. 
    The KEY advantage of using an automated time and attendance system is that it:
    • A. 

      Identifies phantom employees

    • B. 

      Reduces errors

    • C. 

      Interfaces with the payroll system

    • D. 

      Frees supervisors from having to review hours

  • 9. 
    As part of the implementation of a new payroll system, all transactions from the most recent actual payroll are processed in the new system prior to using the system to run payrolls.  This is an example of what type of testing?
    • A. 

      Compliance

    • B. 

      Back-up

    • C. 

      Ongoing

    • D. 

      Parallel

  • 10. 
    To exhibit good customer service skills, payroll staff must understand and be able to explain:
    • A. 

      Payroll forms

    • B. 

      Benefits enrollment techniques

    • C. 

      System design decisions

    • D. 

      Strategic departmental direction

  • 11. 
    Under FLSA , what is the compensation due an employee whose rate of pay is $8 per hour and who is paid for 52 hours during a one-week period, including 8 hours of sick pay?
    • A. 

      $416

    • B. 

      $432

    • C. 

      $448

    • D. 

      $464

  • 12. 
    All of the following data elements are required to be maintained in the employee masterfile EXCEPT:
    • A. 

      Social security number

    • B. 

      Birth date

    • C. 

      Marital status

    • D. 

      Occupation

  • 13. 
    Upward communication involves:
    • A. 

      Dissemination of management decision to the staff

    • B. 

      Interactions between you and your manager

    • C. 

      Passing information to management

    • D. 

      Conducting quality circle meetings

  • 14. 
    The fact that transactions affect two separate accounts of a business is called:
    • A. 

      Compound-entry accounting

    • B. 

      Double-entry accounting

    • C. 

      Accrual accounting

    • D. 

      T-accounting

  • 15. 
    A company pays all executives semimonthly.  The FLSA requires all other employees to be paid on:
    • A. 

      A weekly cycle

    • B. 

      A biweekly cycle

    • C. 

      A semimonthly cycle

    • D. 

      Any established cycle

  • 16. 
    Calculate the employee's gross pay under the FLSA  based on the following data: Rate of pay per hour:  $8.00 Production bonus:  $25.00 Shift differential per hour:  $$0.25 Total shift hours in workweek:  44
    • A. 

      $380.64

    • B. 

      $377.00

    • C. 

      $404.50

    • D. 

      $405.64

  • 17. 
    Which of the following groups BEST defines the term nonexempt under the FLSA?
    • A. 

      A lowered-paid class of employees

    • B. 

      Hourly-paid workers only

    • C. 

      Employees who must be paid overtime

    • D. 

      A special class of employees as determined by the employer

  • 18. 
    For how many years must the employer's copy of Form 940 be retained?
    • A. 

      2

    • B. 

      3

    • C. 

      4

    • D. 

      5

  • 19. 
    Copies of the production files and most recent payroll transactions are sent nightly to the parent company in a remote location.  this practice is part of what type of plan?
    • A. 

      Security

    • B. 

      Control

    • C. 

      Disaster recovery

    • D. 

      Maintenance

  • 20. 
    Employees who are not eligible for direct deposit and receive paychecks sent through the mail are constructively paid:
    • A. 

      On the check date

    • B. 

      When the checks were postmarked

    • C. 

      When the checks are delivered

    • D. 

      When the checks are cashed

  • 21. 
    Which of the following factors provides system security?
    • A. 

      Access level authorizations

    • B. 

      Shared passwords

    • C. 

      Conducting "physical payouts"

    • D. 

      Segregation of duties

  • 22. 
    Under the FLSA, how long are employers required to keep records relating to wages, hours, and conditions of employment?
    • A. 

      3 years

    • B. 

      4 years or until the file is no longer active

    • C. 

      7 years

    • D. 

      Permanently

  • 23. 
    What is the payroll department manager responsible for in a company with strong internal controls?
    • A. 

      Assuring segregation of duties in the department

    • B. 

      Development company policy

    • C. 

      Initiating payroll transactions

    • D. 

      Writing the internal audit transaction test plan

  • 24. 
    The process of balancing multiple time sheets within a specified pay period utilizes a procedure know as:
    • A. 

      Batch totaling

    • B. 

      Exception reporting

    • C. 

      System documentation

    • D. 

      Reconciliation

  • 25. 
    In 2010, an individual worked for three employers during the calendar year, earning $38,000, $39,000, and $35,000 respectively.  What is the total amount of social security and Medicare taxes that should be withheld from the employee's wages by the three employers?
    • A. 

      $6,944.00

    • B. 

      $8,170.20

    • C. 

      $8,245.60

    • D. 

      $8,586.00

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