Practice Test Geeks(CPM) Certified Payroll Manager Practice Test
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Payroll Processing and Administration 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 Payroll Processing and Administration flashcards as text

  1. An employee is paid semi-monthly. They work 95 hours in one pay period, including 15 hours of overtime. How should overtime be calculated?

    Answer: Pay OT for hours over 40 in each workweek within the pay period

    FLSA overtime is calculated on a workweek basis (over 40 hours), regardless of the pay period frequency.

  2. Which form must employers file to report federal income tax withheld and FICA taxes for most employers?

    Answer: Form 941

    Form 941 is the Employer's Quarterly Federal Tax Return used to report withheld federal income tax and FICA taxes.

  3. A company acquires another business mid-year. Under a successor employer situation, how should the acquired employees' FICA wage bases be treated?

    Answer: The successor may continue counting wages paid by the predecessor toward the wage base

    In a successor employer situation, the successor may take into account wages paid by the predecessor to avoid over-withholding FICA taxes.

  4. What is the primary purpose of a payroll register?

    Answer: To provide a summary of each employee's earnings, deductions, and net pay for a pay period

    A payroll register is an internal record summarizing each employee's gross pay, deductions, and net pay for a given pay period.

  5. An employee receives a $5,000 nonqualified deferred compensation payment. When is this amount subject to FICA taxes?

    Answer: When the compensation vests and is no longer subject to a substantial risk of forfeiture

    Under the special timing rule, FICA taxes on nonqualified deferred compensation are due when the amount is no longer subject to a substantial risk of forfeiture.

  6. Which deposit schedule applies to an employer whose total Form 941 tax liability in the lookback period was $45,000?

    Answer: Monthly depositor

    Employers with $50,000 or less in tax liability during the lookback period are monthly depositors; $45,000 falls below the $50,000 threshold.

  7. What does the term 'constructive receipt' mean in payroll administration?

    Answer: Income is taxable when it is made available to the employee without restriction, even if not yet collected

    Constructive receipt means income is taxable when made available to the taxpayer without substantial restrictions, regardless of physical receipt.