CPP CPP Technology Applications 5

Question 1

A payroll system must calculate imputed income for employer-provided life insurance over $50,000. Which table does the system reference for this calculation?

Accepted Answer

IRS Table I uniform premium rates

Answer

IRS Table I provides the cost per $1,000 of group-term life insurance coverage by age bracket used to calculate imputed income.

Question 2

Which ACH return code indicates that the receiving account has been closed?

Accepted Answer

R02 - Account Closed

Answer

Return code R02 specifically indicates that the receiving depository financial institution has closed the account.

Question 3

A payroll department receives a levy notice requiring an immediate wage garnishment. Which system action should be configured to ensure compliance on the very next paycheck?

Accepted Answer

Activate the garnishment deduction effective the current pay period

Answer

Federal and state levy notices typically require immediate compliance, so the garnishment must be applied starting with the current pay period.

Question 4

What does a payroll system's 'pre-note' process accomplish before initiating live ACH direct deposit payments?

Accepted Answer

Sends a zero-dollar test transaction to validate bank account information

Answer

A pre-note is a zero-dollar ACH entry sent to validate that the employee's routing and account numbers are correct before live funds are transmitted.

Question 5

When a payroll professional evaluates a new payroll system using a Request for Proposal (RFP), which criterion specifically addresses how the vendor handles legislative tax updates?

Accepted Answer

Tax compliance and update frequency

Answer

Tax compliance criteria evaluate how quickly and reliably the vendor deploys updates when tax laws change, which is critical for legal compliance.

CPP - Certified Payroll Professional Practice Test

CPP - Certified Payroll Professional Practice Test

CPP CPP Technology Applications 5