CPP CPP Advanced Practice 5 — Questions and Answers
Question 1: Under the FMLA, how many weeks of unpaid leave is a covered employee entitled to for the birth of a child in a 12-month period?
- 6 weeks
- 8 weeks
- 12 weeks (Correct answer)
- 26 weeks
Correct answer: 12 weeks
The FMLA provides eligible employees up to 12 weeks of unpaid, job-protected leave per year for qualifying reasons including birth of a child.
Question 2: An employer is reconciling Form W-2 totals to Form 941 totals. Social Security wages on the W-2s are $50,000 more than the 941 totals. Which error most likely caused this discrepancy?
- An employee exceeded the Social Security wage base and wages were over-reported on W-2
- Sick pay paid by a third-party insurer was included on W-2s but not on Form 941
- An employee's wages were under-reported on Form 941 (Correct answer)
- Fringe benefits were excluded from both forms
Correct answer: An employee's wages were under-reported on Form 941
If W-2 Social Security wages exceed 941 totals, wages were likely under-reported on Form 941 (quarterly returns), creating a shortfall that must be corrected with Form 941-X.
Question 3: What is the lookback period an employer uses to determine their federal tax deposit schedule for 2024?
- January 1 – December 31, 2022
- July 1, 2022 – June 30, 2023 (Correct answer)
- January 1 – December 31, 2023
- July 1, 2023 – June 30, 2024
Correct answer: July 1, 2022 – June 30, 2023
The lookback period for determining the 2024 deposit schedule is the 12-month period from July 1, 2022 through June 30, 2023.
Question 4: An employee repays a $3,000 wage overpayment from a prior year. How should the employer handle the FICA taxes?
- Employer cannot recover FICA taxes once the year has closed; only FIT is recoverable
- File Form 941-X to claim a refund of employer FICA; employee must file Form 843 for employee share (Correct answer)
- Reduce the employee's current-year FICA wages by $3,000 to offset
- The overpayment is simply deducted from the next paycheck with no tax correction
Correct answer: File Form 941-X to claim a refund of employer FICA; employee must file Form 843 for employee share
For prior-year overpayments, the employer files Form 941-X to claim a refund of the employer FICA share, and the employee files Form 843 to recover their employee FICA share.
Question 5: Which of the following is a 'qualified plan award' that may be excluded from an employee's income under IRC §274?
- A $2,000 cash bonus for 20 years of service
- A $1,500 watch presented at a meaningful ceremony for 10 years of service (Correct answer)
- A $500 gift card awarded to the top sales performer
- A $3,000 plaque and cash equivalent for retirement
Correct answer: A $1,500 watch presented at a meaningful ceremony for 10 years of service
Qualified plan awards of tangible personal property (not cash or gift cards) given at a meaningful ceremony for safety or length-of-service can be excluded up to $1,600 per year.
Question 6: Under the FLSA, how must overtime be calculated for a non-exempt employee who works two different jobs for the same employer at different pay rates during the same workweek?
- Overtime is calculated separately for each job at its own rate
- The employer may pay overtime at the rate of whichever job generated the overtime hours
- Overtime is calculated on the weighted average of all rates earned during the workweek (Correct answer)
- The employee receives overtime only for hours worked in the higher-paying job
Correct answer: Overtime is calculated on the weighted average of all rates earned during the workweek
When a non-exempt employee works at two different rates for the same employer in one workweek, the regular rate is the weighted average of all rates, and overtime is paid at 1.5 times that blended rate.
Question 7: Which statement correctly describes the employer's responsibility for the FUTA tax rate after applying the standard credit for state unemployment taxes paid?
- Net FUTA rate is 6.0% after no credits are available
- Net FUTA rate is 0.6% after the maximum 5.4% credit for state unemployment taxes paid (Correct answer)
- Net FUTA rate is 1.2% if the state is a credit reduction state with a 0.6% reduction
- Net FUTA rate is always 6.0% regardless of state taxes paid
Correct answer: Net FUTA rate is 0.6% after the maximum 5.4% credit for state unemployment taxes paid
The gross FUTA rate is 6.0%; employers who pay state unemployment taxes on time receive a 5.4% credit, resulting in a net FUTA rate of 0.6%.
CPP CPP Advanced Practice 5
Under the FMLA, how many weeks of unpaid leave is a covered employee entitled to for the birth of a child in a 12-month period?