CPM Study Guide 2026

Everything you need to pass the CPM exam in one place: the exam format, every topic to study, real practice questions with explanations, flashcards, and full-length practice tests. Free, no sign-up needed.

📋 CPM Exam Format at a Glance

200
Questions
240 min
Time Limit
75%
Passing Score

📚 CPM Topics to Study (69)

✍️ Sample CPM Questions & Answers

1. When a payroll system vendor announces end-of-life (EOL) for a product, what is the MOST critical risk for a company that does not upgrade?
The system will no longer receive security patches or compliance updates

After EOL, vendors stop releasing security patches and tax/compliance updates, leaving the company exposed to security vulnerabilities and the risk of processing payroll with outdated tax tables.

2. After a garnishment order is fully satisfied, what must the employer do?
Immediately cease withholding and notify the employee

Once the debt is paid in full and the garnishment is satisfied, the employer must stop all withholding and should inform the employee that the order has been fulfilled.

3. Which regulation requires payroll systems handling electronic health benefit deductions to maintain specific data privacy safeguards?
HIPAA

HIPAA (Health Insurance Portability and Accountability Act) requires that payroll and HR systems protecting health-related benefit information maintain specific privacy and security safeguards.

4. Which of the following correctly describes the accrual of vacation pay under GAAP?
Vacation pay must be accrued as it is earned if it is probable and estimable

GAAP requires accrual of compensated absences such as vacation pay when the obligation is probable and the amount can be reasonably estimated.

5. Under IRS regulations, what is the maximum contribution limit for a Health Flexible Spending Account (Health FSA) employee salary reduction in 2024?
$3,200

For 2024, the IRS health FSA salary reduction contribution limit is $3,200 per employee.

6. What is the primary purpose of a Summary Plan Description (SPD) in benefits administration?
To inform participants of their rights and benefits under an ERISA plan

ERISA requires plan administrators to provide an SPD that clearly explains plan benefits, eligibility, and participant rights.

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Your CPM Study Path
1. Learn with Flashcards → 2. Drill Practice Tests → 3. Take the Full Exam Simulation
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