CPP Certified Payroll Professional 3

Question 1

Under the FLSA, what is the maximum number of hours an employee can work in a workweek before overtime pay is required?

Accepted Answer

40 hours

Answer

The FLSA requires overtime pay at 1.5× the regular rate for all hours worked beyond 40 in a single workweek.

Question 2

Which of the following correctly describes the employer's share of FICA taxes?

Accepted Answer

6.2% Social Security + 1.45% Medicare, matching the employee share

Answer

Employers match employee FICA contributions: 6.2% Social Security (up to the wage base) and 1.45% Medicare on all wages.

Question 3

A garnishment order requires withholding 25% of an employee's disposable earnings. Under federal law, what is the maximum that can be withheld if this would exceed the CCPA limit?

Accepted Answer

The lesser of 25% of disposable earnings or the amount exceeding 30 × federal minimum wage

Answer

The CCPA limits garnishment to the lesser of 25% of disposable earnings or the amount by which weekly disposable earnings exceed 30 times the federal minimum wage.

Question 4

Form 944 is designed for employers whose annual federal tax liability is:

Accepted Answer

$1,000 or less

Answer

Form 944 (Employer's Annual Federal Tax Return) is for small employers with $1,000 or less in annual federal tax liability, replacing quarterly Form 941 filing.

Question 5

What does 'disposable earnings' mean in the context of wage garnishment?

Accepted Answer

Wages remaining after deductions required by law

Answer

Disposable earnings are the amount remaining after legally required deductions such as taxes, Social Security, and state unemployment insurance — not voluntary deductions.

CPP - Certified Payroll Professional Practice Test

CPP - Certified Payroll Professional Practice Test

CPP Certified Payroll Professional 3