CPP CPP Advanced Practice 3

Question 1

An employee contributes $23,000 to their 401(k) plan in 2024 and is age 52. What is the maximum additional catch-up contribution they may make?

Accepted Answer

$7,500

Answer

For 2024, employees age 50 or older may make an additional $7,500 catch-up contribution to a 401(k) plan beyond the $23,000 base limit.

Question 2

Which form must an employer file to correct an error discovered on a previously filed Form 941?

Accepted Answer

Form 941-X

Answer

Form 941-X (Adjusted Employer's Quarterly Federal Tax Return) is used to correct errors on a previously filed Form 941.

Question 3

Under the FLSA, which of the following employees is properly classified as exempt under the executive exemption?

Accepted Answer

A manager earning $684/week who customarily directs 2 or more employees and has hiring authority

Answer

The executive exemption requires: salary of at least $684/week, primary duty of managing, directing 2+ employees, and authority to hire/fire or significant influence over those decisions.

Question 4

An employee's garnishment order is for $400 per week. Their disposable earnings are $700. Under federal CCPA rules, what is the maximum that can be garnished?

Accepted Answer

$175

Answer

The CCPA limits garnishment to the lesser of 25% of disposable earnings or the amount exceeding 30 times the federal minimum wage ($7.25 × 30 = $217.50); 25% of $700 = $175.

Question 5

What is the Social Security wage base for 2024?

Accepted Answer

$168,600

Answer

The Social Security taxable wage base for 2024 is $168,600; earnings above this amount are not subject to the 6.2% Social Security tax.

CPP - Certified Payroll Professional Practice Test

CPP - Certified Payroll Professional Practice Test

CPP CPP Advanced Practice 3