CPP MCQ 3

Question 1

Under the Consumer Credit Protection Act (CCPA), what is the maximum amount that can be garnished from an employee's disposable earnings for a child support order when the employee supports another family?

Accepted Answer

50%

Answer

When supporting another spouse or child, the CCPA limits child support garnishment to 50% of disposable earnings (55% if more than 12 weeks in arrears).

Question 2

Which payroll record retention period is required by the FLSA for payroll records of non-exempt employees?

Accepted Answer

3 years

Answer

The FLSA requires employers to retain payroll records for non-exempt employees for at least 3 years.

Question 3

A non-resident alien employee on an F-1 visa in their first year in the US is classified for tax withholding purposes as:

Accepted Answer

Non-resident alien subject to 30% flat withholding

Answer

F-1 visa holders in their first five years are generally classified as non-resident aliens and may be subject to 30% withholding on US-source income unless a tax treaty applies.

Question 4

Which of the following accurately describes the IRS 'safe harbor' rule for federal tax deposit shortfalls?

Accepted Answer

No penalty if the shortfall does not exceed the greater of $100 or 2% of the required deposit

Answer

The safe harbor rule waives the failure-to-deposit penalty if the shortfall does not exceed the greater of $100 or 2% of the required deposit amount.

Question 5

When an employee's state income tax withholding exemption certificate (state W-4 equivalent) is not provided, the employer must withhold state income tax as if the employee is:

Accepted Answer

Single with zero allowances

Answer

Most states require employers to withhold at the highest rate (single with zero allowances) when no valid withholding certificate is provided.

CPP - Certified Payroll Professional Practice Test

CPP - Certified Payroll Professional Practice Test

CPP MCQ 3