MCQ 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 MCQ flashcards as text
Under the Consumer Credit Protection Act (CCPA), what is the maximum amount that can be garnished from an employee's disposable earnings for a child support order when the employee supports another family?
Answer: 50%
When supporting another spouse or child, the CCPA limits child support garnishment to 50% of disposable earnings (55% if more than 12 weeks in arrears).
Which payroll record retention period is required by the FLSA for payroll records of non-exempt employees?
Answer: 3 years
The FLSA requires employers to retain payroll records for non-exempt employees for at least 3 years.
A non-resident alien employee on an F-1 visa in their first year in the US is classified for tax withholding purposes as:
Answer: Non-resident alien subject to 30% flat withholding
F-1 visa holders in their first five years are generally classified as non-resident aliens and may be subject to 30% withholding on US-source income unless a tax treaty applies.
Which of the following accurately describes the IRS 'safe harbor' rule for federal tax deposit shortfalls?
Answer: No penalty if the shortfall does not exceed the greater of $100 or 2% of the required deposit
The safe harbor rule waives the failure-to-deposit penalty if the shortfall does not exceed the greater of $100 or 2% of the required deposit amount.
When an employee's state income tax withholding exemption certificate (state W-4 equivalent) is not provided, the employer must withhold state income tax as if the employee is:
Answer: Single with zero allowances
Most states require employers to withhold at the highest rate (single with zero allowances) when no valid withholding certificate is provided.
What is the penalty rate for failure to make timely federal tax deposits for an employer that is 1 to 5 days late?
Answer: 5%
Deposits made 1 to 5 days late are subject to a 2% penalty; however, deposits that are 6 to 15 days late incur a 5% penalty.
An employee who is a statutory employee receives which tax treatment on their wages?
Answer: Subject to FICA but not federal income tax withholding
Statutory employees (e.g., certain drivers, full-time life insurance agents) have FICA taxes withheld but are not subject to federal income tax withholding.