CPP Certified Payroll Professional 4

Question 1

Under the ACA employer mandate, applicable large employers (ALEs) must offer minimum essential coverage to at least what percentage of full-time employees?

Accepted Answer

95%

Answer

ALEs must offer minimum essential coverage to at least 95% of their full-time employees (and their dependents) to avoid the Section 4980H(a) penalty.

Question 2

Which of the following is a correct statement about the Additional Medicare Tax?

Accepted Answer

It is 0.9% on wages exceeding $200,000 for a single filer and is the employee's responsibility only

Answer

The 0.9% Additional Medicare Tax applies to wages over $200,000 (single) and is withheld from the employee only — the employer does not match it.

Question 3

What is the FUTA tax rate, and on what wage base does it apply?

Accepted Answer

6.0% on the first $7,000 of each employee's wages

Answer

The gross FUTA rate is 6.0% on the first $7,000 of wages per employee; a credit of up to 5.4% reduces the net rate to 0.6% for most employers.

Question 4

Which form must an employer file to correct errors on a previously filed Form W-2?

Accepted Answer

Form W-2c

Answer

Form W-2c (Corrected Wage and Tax Statement) is used to correct errors on a previously issued Form W-2.

Question 5

A nonresident alien employee has a tax treaty exemption. Which form must the employee provide to claim treaty benefits on wages?

Accepted Answer

Form 8233

Answer

Nonresident alien employees use Form 8233 to claim exemption from withholding on compensation covered by a tax treaty.

CPP - Certified Payroll Professional Practice Test

CPP - Certified Payroll Professional Practice Test

CPP Certified Payroll Professional 4