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Certified Payroll Professional Flashcards

7 cards from real CPP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Certified Payroll Professional flashcards as text

  1. Under the ACA employer mandate, applicable large employers (ALEs) must offer minimum essential coverage to at least what percentage of full-time employees?

    Answer: 95%

    ALEs must offer minimum essential coverage to at least 95% of their full-time employees (and their dependents) to avoid the Section 4980H(a) penalty.

  2. Which of the following is a correct statement about the Additional Medicare Tax?

    Answer: It is 0.9% on wages exceeding $200,000 for a single filer and is the employee's responsibility only

    The 0.9% Additional Medicare Tax applies to wages over $200,000 (single) and is withheld from the employee only — the employer does not match it.

  3. What is the FUTA tax rate, and on what wage base does it apply?

    Answer: 6.0% on the first $7,000 of each employee's wages

    The gross FUTA rate is 6.0% on the first $7,000 of wages per employee; a credit of up to 5.4% reduces the net rate to 0.6% for most employers.

  4. Which form must an employer file to correct errors on a previously filed Form W-2?

    Answer: Form W-2c

    Form W-2c (Corrected Wage and Tax Statement) is used to correct errors on a previously issued Form W-2.

  5. A nonresident alien employee has a tax treaty exemption. Which form must the employee provide to claim treaty benefits on wages?

    Answer: Form 8233

    Nonresident alien employees use Form 8233 to claim exemption from withholding on compensation covered by a tax treaty.

  6. What is the lookback period used to determine an employer's deposit schedule for Form 941 purposes?

    Answer: The 12-month period ending June 30 of the prior year

    The lookback period for Form 941 deposit schedule determination is July 1 through June 30 of the prior year (a 12-month window ending June 30).

  7. An employee elected to contribute $200 per pay period to a traditional 401(k) plan. How does this affect federal income tax withholding?

    Answer: It reduces the wages subject to federal income tax withholding by $200

    Traditional 401(k) contributions reduce wages subject to federal income tax withholding but do NOT reduce FICA (Social Security and Medicare) taxable wages.