CPP MCQ 2

Question 1

An employee works 46 hours in a workweek and earns a weekly salary of $920. What is the correct overtime premium pay owed under FLSA?

Accepted Answer

$60.00

Answer

The regular rate is $920/46 = $20/hr; the overtime premium (half-time) is $10 × 6 hours = $60.

Question 2

Which IRS form must an employer file to report FUTA tax liability?

Accepted Answer

Form 940

Answer

Form 940 is the Employer's Annual Federal Unemployment (FUTA) Tax Return.

Question 3

Under the FLSA, the tip credit allows tipped employees to be paid a minimum cash wage of how much per hour (federal level)?

Accepted Answer

$2.13

Answer

The federal minimum cash wage for tipped employees has remained at $2.13 per hour since 1991.

Question 4

When calculating the Social Security wage base for 2024, wages above what threshold are exempt from the 6.2% employee Social Security tax?

Accepted Answer

$168,600

Answer

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

Question 5

Which method allows an employer to spread a lump-sum supplemental wage payment over the year for federal income tax withholding purposes?

Accepted Answer

Aggregate method

Answer

The aggregate method combines the supplemental payment with regular wages and applies the withholding tables to the total.

CPP - Certified Payroll Professional Practice Test