CPP CPP Payroll Systems & Processes

Question 1

What is the correct order for computing an employee's net pay?

Accepted Answer

Gross pay → Pre-tax deductions → Tax withholding → Post-tax deductions → Net pay

Answer

Net pay is derived by starting with gross pay, subtracting pre-tax deductions, then taxes, then any post-tax deductions.

Question 2

The optional flat supplemental withholding rate may be applied when:

Accepted Answer

Supplemental wages are paid separately from regular wages on a separate check

Answer

When supplemental wages are paid on a separate check apart from regular wages, employers may apply the flat 22% federal supplemental withholding rate.

Question 3

A semi-monthly payroll schedule results in how many pay periods per year?

Accepted Answer

24

Answer

Semi-monthly means twice per month, so 2 × 12 months = 24 pay periods per year.

Question 4

Imputed income is best described as:

Accepted Answer

The taxable value of employer-provided non-cash benefits that must be included in gross wages

Answer

Imputed income is the fair market value of non-cash benefits that exceeds IRS exclusion limits and must be added to taxable wages.

Question 5

The FLSA requires overtime to be paid at what minimum rate for hours over 40 in a workweek?

Accepted Answer

1.5 times the regular rate of pay

Answer

The FLSA requires overtime pay of at least 1.5 times the employee's regular rate of pay for all hours worked over 40 in a workweek.

CPP - Certified Payroll Professional Practice Test

CPP - Certified Payroll Professional Practice Test

CPP CPP Payroll Systems & Processes