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Compliance and Legal Requirements Flashcards

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

Read the first 7 Compliance and Legal Requirements flashcards as text

  1. Under the Child Support Enforcement Act, what is the maximum percentage of disposable earnings that can be withheld for child support when an employee is NOT supporting another family and is NOT in arrears?

    Answer: 50%

    When an employee is not supporting another spouse/child and is not 12+ weeks in arrears, the CCPA cap is 50% of disposable earnings.

  2. Which federal law requires employers to provide employees with a Summary Plan Description (SPD) for benefit plans?

    Answer: ERISA

    ERISA requires plan administrators to furnish participants with an SPD describing plan benefits, rights, and obligations.

  3. An employer receives a federal tax levy (IRS Form 668-W). How is the exempt amount from levy determined?

    Answer: It is based on the employee's standard deduction and personal exemptions claimed on a Statement of Exemptions

    The IRS provides Publication 1494 tables; the exempt amount is based on the pay period, filing status, and exemptions the employee claims on Form 668-W Part 3.

  4. Which provision of the Affordable Care Act requires applicable large employers (ALEs) to report health coverage information to the IRS?

    Answer: Section 6056

    IRC Section 6056 requires ALEs to file Forms 1094-C and 1095-C to report health coverage offers to the IRS.

  5. Under the Uniformed Services Employment and Reemployment Rights Act (USERRA), how long does an employee on military leave have to apply for reemployment after a service period of 31–180 days?

    Answer: 30 days after release

    For service of 31–180 days, the employee must submit a reemployment application within 14 days — but for over 180 days the window is 90 days.

  6. Which act prohibits employers from discriminating against employees whose wages are being garnished for a single debt?

    Answer: Consumer Credit Protection Act Title III

    Title III of the CCPA prohibits employers from discharging an employee because earnings have been garnished for any one debt.

  7. An employee's Form W-4 claims 'exempt' from federal income tax withholding. When does this exemption expire and require a new W-4?

    Answer: February 15 of the following year

    A claim of exempt status on Form W-4 expires on February 15 of the following year; the employee must submit a new W-4 to continue the exemption.