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
Under the Electronic Fund Transfer Act, an employer may require direct deposit of wages ONLY if:
Answer: State law explicitly permits mandatory direct deposit and the employer complies with any state requirements
Whether mandatory direct deposit is permissible depends on state law; some states prohibit it, while others allow it with conditions such as employee choice of financial institution.
A payroll manager is reviewing a Certified Payroll Report (WH-347) for a federal prevailing wage project. Which law requires this report?
Answer: The Davis-Bacon Act
The Davis-Bacon Act requires contractors on federal construction projects to pay prevailing wages and submit certified payroll reports on Form WH-347 to the contracting agency.
An employee's Form W-4 is submitted with an invalid status claim. Under IRS guidance, what should the employer do?
Answer: Apply the prior valid W-4 on file, or withhold at single/zero if no prior W-4 exists
If a W-4 is invalid, the employer should withhold based on the most recently valid W-4 on file, or at the default single/zero allowances rate if no valid prior W-4 exists.
Which payroll record retention period is required under the FLSA for payroll records such as time cards and work schedules?
Answer: 3 years
The FLSA requires that supplementary records such as time cards, work schedules, and records of additions or deductions be retained for at least 2 years.
A company processes payroll using an outside service bureau. From an internal controls perspective, the company should PRIMARILY obtain which document annually from the service bureau?
Answer: A SOC 1 Type II report covering payroll processing controls
A SOC 1 Type II report provides an independent auditor's assessment of the service bureau's internal controls over financial reporting, which is essential for the company's own control environment.
Under FICA, what happens to the employee's Social Security tax withholding when cumulative wages exceed the annual Social Security wage base?
Answer: Social Security tax withholding stops for the remainder of the year
Once an employee's wages exceed the Social Security wage base for the year, no additional Social Security tax (6.2%) is withheld for that employee for the rest of the year.
A payroll audit reveals that a department manager has been approving time records for employees who report to a different department. This violates which internal control principle?
Answer: Proper authorization and segregation of duties
Proper authorization requires that only those with supervisory authority over the employees approve their time records; approving records outside one's span of control violates authorization and segregation-of-duties principles.