CBS Payroll Processing & Administration 2

Question 1

An employee's gross pay is $4,200 per month. They contribute 6% to a 401(k) pre-tax. What is their taxable gross for federal income tax withholding purposes?

Accepted Answer

$3,948

Answer

Pre-tax 401(k) contributions reduce taxable gross: $4,200 × 6% = $252, so $4,200 − $252 = $3,948.

Question 2

Which federal form must employers file quarterly to report wages paid and taxes withheld for employees?

Accepted Answer

Form 941

Answer

Form 941 is the Employer's Quarterly Federal Tax Return used to report wages, tips, and federal tax withholding each quarter.

Question 3

Under the FLSA, which of the following workers is most likely classified as non-exempt and therefore entitled to overtime pay?

Accepted Answer

An hourly warehouse picker earning $18/hour

Answer

Hourly workers performing non-managerial duties typically do not meet FLSA white-collar exemption tests and must receive overtime pay.

Question 4

What is the IRS standard mileage reimbursement rate used for in payroll?

Accepted Answer

Reimbursing employees for business use of personal vehicles tax-free

Answer

Employees reimbursed at or below the IRS standard mileage rate for business travel in personal vehicles receive a non-taxable reimbursement.

Question 5

A garnishment order for child support arrives for an employee. Under federal law (CCPA), the maximum amount that can be garnished if the employee supports another family is:

Accepted Answer

50% of disposable earnings

Answer

Under the CCPA, the maximum garnishment for child support is 50% of disposable earnings when the employee is supporting another spouse or child.

(CBS) Certified Budget Specialist Practice Test

(CBS) Certified Budget Specialist Practice Test

CBS Payroll Processing & Administration 2