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. Which APA publication is the primary reference for understanding federal payroll tax deposit rules and schedules? → IRS Publication 15 (Circular E)
2. When must an employer notify employees of their COBRA rights following a qualifying event? → Within 44 days of the employer learning of the event
3. Which section of the Internal Revenue Code governs cafeteria plans that allow employees to choose between taxable and nontaxable benefits? → IRC §125
4. Under payroll industry standards, which document serves as the primary legal authorization for an employer to change an employee's payroll deductions? → A signed written authorization from the employee
5. Under the Consumer Credit Protection Act (CCPA), which type of garnishment has the highest priority when an employee has multiple garnishments? → Child support orders
6. Which federal agency enforces the Fair Labor Standards Act (FLSA)? → Department of Labor Wage and Hour Division
7. The primary benefit of developing an in-house system is: → The entire computer system is controlled by the employer
8. An employee earns $3,000 bi-weekly. What is the combined employee FICA tax (Social Security + Medicare) withheld per paycheck? → $229.50
9. Which FLSA provision allows hospitals and residential care establishments to use an 8-and-80 overtime agreement? → Section 7(j)
10. What is one element of a payroll calendar? → Pay frequency
11. When corrected W-2c forms are filed with the SSA, what accompanying form must also be submitted? → Form W-3c
12. 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
13. What is the typical processing time for a standard ACH payroll direct deposit? → 1 to 2 business days
14. Which of the following is a qualifying event that triggers COBRA continuation coverage for a spouse? → Divorce or legal separation from the covered employee
15. Which of the following payments is exempt from FUTA tax? → Wages paid to a spouse employed by the other spouse
16. An employer sponsors a nonqualified deferred compensation plan. Under IRC Section 409A, what event triggers taxation of the deferred amounts? → Only when the employee receives a distribution under a permissible event
17. An employer offers tuition reimbursement for a payroll professional pursuing a bachelor's degree in accounting. This is best classified as: → Employer-supported professional development that may be tax-advantaged under Section 127
18. Under the FLSA, what is the maximum number of hours an employee can work in a workweek before overtime pay is required? → 40 hours
19. A payroll professional seeks to transition into a payroll consulting role. Which CPP competency area is MOST relevant to prepare for this career path? → Broad knowledge of multi-state payroll, compliance, and strategic advisory skills
20. Which form must an employer file to correct errors on a previously filed Form W-2? → Form W-2c
21. Which of the following is an example of a state that imposes no individual income tax, simplifying multi-state payroll for employers with employees there? → Washington
22. Which of the following is a 'responsible person' who could be held liable for the Trust Fund Recovery Penalty? → A bookkeeper who has authority to sign checks and direct tax payments
23. What kind of employee is considered as a statutory employee? → A life insurance salesperson who works full-time
24. What penalty applies when an employer willfully fails to collect or pay over payroll taxes? → 100% of the unpaid trust fund taxes (Trust Fund Recovery Penalty)
25. Employers are required by the Family and Medical Leave Act to keep records for: → 3 years
26. Which of the following is an example of a 'stretch assignment' used for payroll professional development? → Leading an enterprise-wide payroll system migration for the first time
27. Which form must employers use to report ACA health coverage information to the IRS for applicable large employers? → Form 1094-C and 1095-C
28. A company changes payroll frequency from biweekly to semimonthly. How many paychecks will employees receive per year under the new schedule? → 24
29. Which benefit, even if it is limited to highly paid employees, is tax-free for all employees? → Transportation-related fringe benefits
30. What type of information is reported in Box 14 of Form W-2? → Other employer-discretionary information