MCQ 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 MCQ flashcards as text
An employee works 46 hours in a workweek and earns a weekly salary of $920. What is the correct overtime premium pay owed under FLSA?
Answer: $60.00
The regular rate is $920/46 = $20/hr; the overtime premium (half-time) is $10 × 6 hours = $60.
Which IRS form must an employer file to report FUTA tax liability?
Answer: Form 940
Form 940 is the Employer's Annual Federal Unemployment (FUTA) Tax Return.
Under the FLSA, the tip credit allows tipped employees to be paid a minimum cash wage of how much per hour (federal level)?
Answer: $2.13
The federal minimum cash wage for tipped employees has remained at $2.13 per hour since 1991.
When calculating the Social Security wage base for 2024, wages above what threshold are exempt from the 6.2% employee Social Security tax?
Answer: $168,600
The 2024 Social Security wage base is $168,600; wages above this amount are not subject to the 6.2% Social Security tax.
Which method allows an employer to spread a lump-sum supplemental wage payment over the year for federal income tax withholding purposes?
Answer: Aggregate method
The aggregate method combines the supplemental payment with regular wages and applies the withholding tables to the total.
An employer discovers a payroll error that resulted in an employee being overpaid $500 in a prior year. What is the correct tax treatment?
Answer: Issue a corrected W-2c for the prior year
A prior-year overpayment requires a corrected Form W-2c to adjust the employee's taxable wages and tax withholding for the year of the error.
Which of the following fringe benefits is excluded from an employee's gross income under IRC Section 132?
Answer: No-additional-cost services
No-additional-cost services (e.g., free standby flights for airline employees) are excludable under IRC Section 132(b).