CPM Payroll Processing and Administration 2

Question 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?

Accepted Answer

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

Answer

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

Question 2

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

Accepted Answer

Form 941

Answer

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

Question 3

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

Accepted Answer

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

Answer

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

Question 4

What is the primary purpose of a payroll register?

Accepted Answer

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

Answer

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

Question 5

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

Accepted Answer

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

Answer

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.

(CPM) Certified Payroll Manager Practice Test

(CPM) Certified Payroll Manager Practice Test

CPM Payroll Processing and Administration 2