CPP CPP Industry Standards 4 — Questions and Answers
Question 1: Which professional certification, alongside the CPP, is offered by the APA for payroll practitioners at the foundational level?
- PHR
- FPC (Fundamental Payroll Certification) (Correct answer)
- CPA
- CEBS
Correct answer: FPC (Fundamental Payroll Certification)
The APA offers the Fundamental Payroll Certification (FPC) as an entry-level credential, with the CPP serving as the advanced professional designation.
Question 2: When an employer fails to meet payroll industry standards for timely wage payment, which federal agency primarily enforces the FLSA's timely payment requirements?
- IRS
- EEOC
- DOL Wage and Hour Division (Correct answer)
- NLRB
Correct answer: DOL Wage and Hour Division
The Department of Labor's Wage and Hour Division enforces FLSA provisions including timely payment of wages to employees.
Question 3: In payroll industry standard terminology, what is a 'reconciliation' process designed to ensure?
- That all employees have completed their W-4 forms
- That payroll records, tax deposits, and general ledger accounts are in agreement (Correct answer)
- That direct deposit prenotes have cleared the bank
- That all garnishment orders are filed with the court
Correct answer: That payroll records, tax deposits, and general ledger accounts are in agreement
Payroll reconciliation ensures that payroll records, tax liabilities, actual deposits, and GL entries all match, preventing discrepancies and errors.
Question 4: The APA's government affairs program actively monitors and advocates on which types of issues that affect payroll professionals?
- Only federal minimum wage legislation
- Federal and state legislation and regulation affecting payroll compliance (Correct answer)
- Only IRS tax code changes
- International trade agreements
Correct answer: Federal and state legislation and regulation affecting payroll compliance
The APA's government affairs program tracks and advocates on both federal and state legislative and regulatory developments that impact payroll operations.
Question 5: Under payroll industry standards, which document serves as the primary legal authorization for an employer to change an employee's payroll deductions?
- Verbal confirmation from the employee
- A signed written authorization from the employee (Correct answer)
- Manager approval email
- HR department memo
Correct answer: A signed written authorization from the employee
A signed written authorization from the employee is required by industry standards and often by state law before voluntary payroll deductions can be changed.
Question 6: Which NACHA rule requires organizations sending ACH payroll files to verify the identity of their third-party senders?
- WEB debit rule
- Third-Party Sender rule (Correct answer)
- Micro-entry rule
- Same-Day ACH rule
Correct answer: Third-Party Sender rule
The NACHA Third-Party Sender rule requires Originating Depository Financial Institutions (ODFIs) to conduct due diligence on third-party senders who originate ACH entries on behalf of others.
Question 7: According to APA professional standards, which practice best supports payroll department compliance with state-specific wage payment laws?
- Applying federal standards uniformly across all states
- Maintaining a state law matrix and updating it when laws change (Correct answer)
- Delegating state compliance to individual department managers
- Following only the laws of the state where HQ is located
Correct answer: Maintaining a state law matrix and updating it when laws change
Maintaining an up-to-date state law compliance matrix ensures that payroll professionals correctly apply each state's unique wage payment rules.
CPP CPP Industry Standards 4
Which professional certification, alongside the CPP, is offered by the APA for payroll practitioners at the foundational level?