CPP CPP Quality & Compliance 2

Question 1

An employer discovers a payroll error from three pay periods ago that resulted in an employee being underpaid. Under the FLSA, what is the primary obligation?

Accepted Answer

Pay the underpaid wages plus applicable overtime in the next regular payroll

Answer

The FLSA requires employers to promptly correct wage underpayments, including any resulting overtime deficiencies, in the next regular pay cycle.

Question 2

Which IRS form is used to correct a previously filed Form 941?

Accepted Answer

Form 941-X

Answer

Form 941-X, Adjusted Employer's Quarterly Federal Tax Return or Claim for Refund, is used to correct errors on a previously filed Form 941.

Question 3

Under IRS regulations, what is the lookback period used to determine an employer's deposit schedule for federal employment taxes?

Accepted Answer

The 12-month period ending June 30 of the prior year

Answer

The lookback period is the 12-month period ending June 30 of the prior year, used to classify employers as monthly or semi-weekly depositors.

Question 4

A payroll professional notices that an employee's federal income tax withholding was calculated using the wrong filing status for the entire year. Which corrective document must be issued to the employee?

Accepted Answer

A corrected Form W-2c

Answer

Form W-2c is issued to employees to correct errors on previously furnished Form W-2s, including incorrect withholding amounts.

Question 5

An organization undergoes a payroll audit and the auditor requests documentation showing that garnishment orders were processed correctly. Which record would BEST demonstrate compliance?

Accepted Answer

Payroll registers showing deduction amounts per pay period alongside the court orders

Answer

Payroll registers cross-referenced with the original court orders demonstrate that the correct amounts were deducted per the legal requirements.

CPP - Certified Payroll Professional Practice Test

CPP - Certified Payroll Professional Practice Test

CPP CPP Quality & Compliance 2