Practice Test Geeks(CPP) Certified Purchasing Professional Practice Test
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Basic Flashcards

7 cards from real CPP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Basic flashcards as text

  1. An employee is paid $18/hr and works 50 hours in a workweek. What is their total gross pay under FLSA?

    Answer: $990.00

    Regular pay: 40 × $18 = $720; overtime: 10 × $27 (1.5 × $18) = $270; total gross pay = $990.

  2. Which IRS form is used to report an employee's annual wages and taxes withheld?

    Answer: Form W-2

    Form W-2 reports annual wages paid and taxes withheld for each employee and must be furnished by January 31.

  3. What is the current Social Security tax rate paid by each employee (employee share only)?

    Answer: 6.20%

    The employee Social Security (OASDI) tax rate is 6.2%, and the employer matches the same 6.2%.

  4. Which of the following fringe benefits is generally excluded from an employee's gross income?

    Answer: Employer-paid health insurance premiums

    Employer-paid health insurance premiums are excluded from employees' gross income under IRC §106.

  5. A company changes payroll frequency from biweekly to semimonthly. How many paychecks will employees receive per year under the new schedule?

    Answer: 24

    Semimonthly means twice per month, resulting in 24 paychecks per year (2 × 12 months).

  6. Under the FLSA, which category of workers is NOT required to receive overtime pay?

    Answer: Exempt salaried executives meeting the salary basis test

    Exempt employees who meet FLSA salary basis and duties tests (executive, administrative, professional) are not entitled to overtime.

  7. What is the purpose of Form SS-4?

    Answer: To apply for an Employer Identification Number (EIN)

    Form SS-4 is the Application for Employer Identification Number filed with the IRS to obtain an EIN.