CPS Cheat Sheet 2026

The 30 highest-yield CPS facts, distilled from real exam questions. Print it, save it as a PDF, or study it here — free, no sign-up.

1. Which federal law governs the minimum wage and overtime requirements for most private-sector employees in the United States? → Fair Labor Standards Act (FLSA)
2. Which of the following is NOT a qualifying event that triggers COBRA continuation rights under federal law? → Employee reaching age 65 and enrolling in Medicare
3. Which state law concept requires employers to pay all wages due upon an employee's termination on a specific timeline that may differ from regular payday? → Final paycheck law
4. Under federal law, within how many business days after the employee's payday must an employer remit withheld child support payments? → 7 business days
5. Why is documentation critical in CPS compliance? → It provides evidence of compliance and defensible records
6. What is a near-miss report in CPS practice? → Documentation of an event that could have caused harm but did not
7. What is the primary purpose of payroll processing? → To ensure employees are paid on time and accurately
8. Which type of garnishment order generally takes priority over all other garnishments when received simultaneously? → Child support and alimony income withholding orders
9. What is the purpose of data analysis in CPS practice? → Transforming raw data into insights for informed decision-making
10. Why are tax filings an essential part of payroll administration? → To fulfill legal tax reporting requirements
11. Which tax forms can payroll systems generate? → W-2 and 1099 forms
12. The 'regular rate of pay' used for FLSA overtime calculations must include which of the following? → Shift differentials and non-discretionary bonuses
13. Why do employers need to file Form 941? → To report employee wages and tax withholdings
14. What does gross pay refer to in payroll calculations? → Total earnings before deductions
15. What differentiates fixed from variable costs in CPS? → Fixed costs stay constant; variable costs change with volume
16. How can payroll compliance be monitored effectively? → Through audits and using updated software
17. What is budget variance analysis in CPS financial management? → Comparing actual spending against budgeted amounts to explain differences
18. What is cash flow management in CPS practice? → Optimizing the timing of money coming in and going out
19. What differentiates quantitative from qualitative data in CPS? → Quantitative is numerical; qualitative is descriptive and categorical
20. What consequence may an employer face for failing to comply with a valid court-ordered garnishment? → Potential personal liability for the amount that should have been withheld
21. Under ERISA, which type of employee benefit plan is required to provide employees with a Summary Plan Description (SPD)? → Both welfare benefit plans and pension plans covered by ERISA
22. What is a dashboard in CPS reporting? → A visual display of key metrics for at-a-glance performance monitoring
23. What is the main benefit of using a cloud-based payroll system? → Centralized data management and real-time access
24. What is the function of the IRS in payroll taxation? → To oversee tax withholding and ensure compliance
25. What is a corrective action plan in CPS compliance? → A strategy to address deficiencies and prevent recurrence
26. Why is regular review important in CPS risk management? → Conditions change and new risks emerge requiring updates
27. Which of the following is NOT typically withheld from an employee's paycheck? → Employer-paid social security contributions
28. What differentiates fixed from variable costs in CPS? → Fixed costs stay constant; variable costs change with volume
29. What is the Social Security (OASDI) wage base limit for 2025? → $176,100
30. Which payroll document must an employer provide to employees annually to report wages, tips, and withheld taxes? → Form W-2 (Wage and Tax Statement)