Practice Test Geeks(CPM) Certified Payroll Manager Practice Test
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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 Family and Medical Leave Act (FMLA), what is the maximum leave entitlement for a covered employee caring for a servicemember with a serious injury or illness?

    Answer: 26 weeks

    Military caregiver leave under FMLA allows up to 26 workweeks in a single 12-month period for eligible employees.

  2. Which IRS form must an employer file to report nonpayroll federal income tax withholding (e.g., backup withholding on dividends)?

    Answer: Form 945

    Form 945 is used to report withheld federal income tax from nonpayroll payments such as pensions, gambling winnings, and backup withholding.

  3. Under the Immigration Reform and Control Act (IRCA), within how many business days of hire must an employee complete Section 1 of Form I-9?

    Answer: On or before the first day of employment

    Employees must complete Section 1 of Form I-9 no later than the first day of employment for pay.

  4. Which FLSA exemption applies to employees in administrative roles who primarily perform office work directly related to management or general business operations AND exercise discretion and independent judgment?

    Answer: Administrative exemption

    The administrative exemption requires the employee to exercise discretion and independent judgment with respect to matters of significance.

  5. An employee subject to state income tax moves mid-year from California to Nevada, which has no state income tax. How should the employer handle state withholding for the year?

    Answer: Withhold California tax for the period worked in California and no state tax after the move date

    Wages are generally taxable by the state where the work is performed, so California withholding applies only to the portion of wages earned while the employee lived and worked there.

  6. What is the penalty for an employer who fails to make timely federal payroll tax deposits and the failure is due to reasonable cause rather than willful neglect?

    Answer: 2% to 15% failure-to-deposit penalty, potentially reduced or waived

    The FTD penalty ranges from 2%–15% based on how late the deposit is, and the IRS may waive it upon showing reasonable cause.

  7. Under the Age Discrimination in Employment Act (ADEA), which age group is protected from employment discrimination?

    Answer: Employees ages 40 and older

    The ADEA protects individuals who are 40 years of age or older from employment discrimination based on age.