CPP Quality & Compliance 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 CPP Quality & Compliance flashcards as text
An employer discovers a payroll error from three pay periods ago that resulted in an employee being underpaid. Under the FLSA, what is the primary obligation?
Answer: Pay the underpaid wages plus applicable overtime in the next regular payroll
The FLSA requires employers to promptly correct wage underpayments, including any resulting overtime deficiencies, in the next regular pay cycle.
Which IRS form is used to correct a previously filed Form 941?
Answer: Form 941-X
Form 941-X, Adjusted Employer's Quarterly Federal Tax Return or Claim for Refund, is used to correct errors on a previously filed Form 941.
Under IRS regulations, what is the lookback period used to determine an employer's deposit schedule for federal employment taxes?
Answer: The 12-month period ending June 30 of the prior year
The lookback period is the 12-month period ending June 30 of the prior year, used to classify employers as monthly or semi-weekly depositors.
A payroll professional notices that an employee's federal income tax withholding was calculated using the wrong filing status for the entire year. Which corrective document must be issued to the employee?
Answer: A corrected Form W-2c
Form W-2c is issued to employees to correct errors on previously furnished Form W-2s, including incorrect withholding amounts.
An organization undergoes a payroll audit and the auditor requests documentation showing that garnishment orders were processed correctly. Which record would BEST demonstrate compliance?
Answer: Payroll registers showing deduction amounts per pay period alongside the court orders
Payroll registers cross-referenced with the original court orders demonstrate that the correct amounts were deducted per the legal requirements.
Under the Consumer Credit Protection Act (CCPA), which type of garnishment has the highest priority when an employee has multiple garnishments?
Answer: Child support orders
Child support orders have the highest priority under federal law, and the CCPA also allows higher withholding limits for child support than for ordinary creditor garnishments.
Which internal control BEST reduces the risk of fictitious employees being added to a payroll system?
Answer: Segregating the duty of adding new employees from the duty of processing payroll
Segregation of duties prevents one person from both creating a fictitious employee record and processing a paycheck for that record, which is a key anti-fraud control.