Certified Payroll Professional 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 Certified Payroll Professional flashcards as text
An employee who is paid biweekly earns $52,000 annually. What is their gross pay per pay period?
Answer: $2,000.00
Biweekly means 26 pay periods per year; $52,000 ÷ 26 = $2,000.00 per pay period.
Under the FLSA, which of the following workers is generally EXEMPT from overtime requirements?
Answer: A bona fide executive employee meeting the salary threshold
Bona fide executive, administrative, and professional employees who meet salary and duties tests are exempt from FLSA overtime.
Which IRS form is used to report an employee's annual wages and taxes withheld?
Answer: Form W-2
Form W-2 (Wage and Tax Statement) reports annual wages and federal, state, and other taxes withheld for each employee.
What is the federal income tax withholding method that uses tables based on filing status and wage amount?
Answer: Wage bracket method
The wage bracket method uses IRS Publication 15-T tables that match gross wages and filing status to a withholding amount.
An employee receives a $5,000 bonus. The employer uses the flat supplemental withholding rate. How much federal income tax is withheld?
Answer: $1,100
The optional flat supplemental withholding rate is 22%, so $5,000 × 22% = $1,100.
Which payroll concept refers to the reduction of taxable income through pre-tax benefit deductions such as health insurance premiums?
Answer: Cafeteria plan deduction
Cafeteria plan (Section 125) deductions reduce an employee's taxable wages before federal income tax and FICA are calculated.
What is the purpose of the Social Security wage base?
Answer: It limits the wages on which Social Security tax is withheld each year
The Social Security wage base is the annual earnings ceiling above which the 6.2% Social Security tax no longer applies.