CPP MCQ 4

Question 1

Under ERISA, a 401(k) plan must distribute elective deferrals made under a safe harbor plan to participants no later than:

Accepted Answer

By March 15 of the following year

Answer

Excess contributions must be distributed by March 15 of the year following the plan year to avoid excise taxes under IRC Section 4979.

Question 2

Which form must an employer use to correct errors on previously filed Form 941?

Accepted Answer

Form 941-X

Answer

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

Question 3

Under the ACA employer mandate, applicable large employers (ALEs) that fail to offer minimum essential coverage to at least 95% of full-time employees may be subject to a Shared Responsibility Payment under:

Accepted Answer

IRC Section 4980H(a)

Answer

IRC Section 4980H(a) imposes the 'A' penalty on ALEs that fail to offer minimum essential coverage to at least 95% of their full-time employees and their dependents.

Question 4

An employee is paid $1,800 semimonthly. What is this employee's annualized salary?

Accepted Answer

$43,200

Answer

Semimonthly means 24 pay periods per year; $1,800 × 24 = $43,200 annualized salary.

Question 5

Which of the following payments is exempt from FUTA tax?

Accepted Answer

Wages paid to a spouse employed by the other spouse

Answer

Wages paid by one spouse to another in a non-corporate business setting are exempt from FUTA tax under IRC Section 3306(c)(5).

CPP - Certified Payroll Professional Practice Test

CPP - Certified Payroll Professional Practice Test

CPP MCQ 4