CPP Certified Payroll Professional 2

Question 1

An employee who is paid biweekly earns $52,000 annually. What is their gross pay per pay period?

Accepted Answer

$2,000.00

Answer

Biweekly means 26 pay periods per year; $52,000 ÷ 26 = $2,000.00 per pay period.

Question 2

Under the FLSA, which of the following workers is generally EXEMPT from overtime requirements?

Accepted Answer

A bona fide executive employee meeting the salary threshold

Answer

Bona fide executive, administrative, and professional employees who meet salary and duties tests are exempt from FLSA overtime.

Question 3

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

Accepted Answer

Form W-2

Answer

Form W-2 (Wage and Tax Statement) reports annual wages and federal, state, and other taxes withheld for each employee.

Question 4

What is the federal income tax withholding method that uses tables based on filing status and wage amount?

Accepted Answer

Wage bracket method

Answer

The wage bracket method uses IRS Publication 15-T tables that match gross wages and filing status to a withholding amount.

Question 5

An employee receives a $5,000 bonus. The employer uses the flat supplemental withholding rate. How much federal income tax is withheld?

Accepted Answer

$1,100

Answer

The optional flat supplemental withholding rate is 22%, so $5,000 × 22% = $1,100.

CPP - Certified Payroll Professional Practice Test