CPP Cheat Sheet 2026

The 30 highest-yield CPP facts, distilled from real exam questions. Print it, save it as a PDF, or study it here — free, no sign-up.

1. The primary benefit of developing an in-house system is: → The entire computer system is controlled by the employer
2. What is one element of a payroll calendar? → Pay frequency
3. When corrected W-2c forms are filed with the SSA, what accompanying form must also be submitted? → Form W-3c
4. An employer's deposit schedule (monthly vs. semi-weekly) for federal payroll taxes is determined by: → The employer's total federal payroll tax liability during the lookback period
5. What is the typical processing time for a standard ACH payroll direct deposit? → 1 to 2 business days
6. What kind of employee is considered as a statutory employee? → A life insurance salesperson who works full-time
7. Employers are required by the Family and Medical Leave Act to keep records for: → 3 years
8. Which benefit, even if it is limited to highly paid employees, is tax-free for all employees? → Transportation-related fringe benefits
9. What type of information is reported in Box 14 of Form W-2? → Other employer-discretionary information
10. What Box 12 code reports designated Roth contributions to a 401(k) plan? → Code AA
11. What is the minimum pay for a worker who gets tipped for services rendered? → $2.13
12. What steps must an employer take after receiving notification from the IRS that an employee's Form W-4 is invalid? → Withhold based on data from the Internal Revenue Service
13. For a non-exempt employee earning both hourly wages and a non-discretionary bonus, overtime is correctly calculated by: → Including the bonus in the regular rate calculation before computing the overtime premium
14. Change control in payroll system maintenance pertains to: → Methods for testing and scheduling modifications before their implementation in production
15. What is Form W-4 used for? → For employees to indicate their federal tax withholding preferences to their employer
16. What is the minimum age that an employee may operate a motor vehicle on public roads? → 17 years old and fulfilling the weight and driving experience requirements for the vehicle
17. When is the employer required to deposit payroll taxes with the IRS? → On a semi-weekly or monthly schedule based on the employer's total tax liability
18. Starting with tax year 2023, at what threshold are employers required to file W-2 forms electronically with the SSA? → 10 or more forms
19. When recording gross wages, the offsetting credits typically go to: → Cash and various withholding liability accounts
20. A 'ghost employee' in payroll fraud refers to: → A fictitious person added to payroll to divert funds to the fraudster
21. Which of the following employees is eligible to receive compensatory time off in place of overtime pay under the Fair Labor Standards Act? → Municipal firefighters
22. Failure-to-deposit penalties for federal payroll taxes can reach up to what maximum percentage? → 15% of the underpaid amount
23. Form W-2c is used to: → Correct errors on a previously issued W-2
24. What Box 12 code on Form W-2 reports the cost of employer-sponsored health coverage under the ACA? → Code DD
25. The annual federal unemployment tax return is filed on: → Form 940
26. What is the primary purpose of a payroll register? → To serve as the source document for payroll journal entries
27. What Box 12 code reports elective deferrals to a Section 403(b) tax-sheltered annuity plan? → Code E
28. The optional flat supplemental withholding rate may be applied when: → Supplemental wages are paid separately from regular wages on a separate check
29. A semi-monthly payroll schedule results in how many pay periods per year? → 24
30. An employee who exceeds the social security pay base and works for multiple employers may: → Using Form 1040, claim a credit against federal income tax.