Practice Test Geeks(CPS) Certified Payroll Specialist Practice Test
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CPS Benefits & Deductions Management Flashcards

6 cards from real CPS practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 6 CPS Benefits & Deductions Management flashcards as text

  1. What is the maximum annual employee contribution limit for a Health Savings Account (HSA) for self-only coverage in 2025?

    Answer: $4,300

    For 2025, the IRS set the HSA contribution limit at $4,300 for self-only HDHP coverage and $8,550 for family coverage.

  2. When processing a garnishment order, which federal law limits the amount that can be deducted from an employee's disposable earnings for a single creditor?

    Answer: Consumer Credit Protection Act (CCPA) Title III

    Title III of the CCPA limits garnishment to the lesser of 25% of disposable earnings or the amount by which disposable earnings exceed 30 times the federal minimum wage.

  3. Which of the following is NOT a qualifying event that triggers COBRA continuation rights under federal law?

    Answer: Employee reaching age 65 and enrolling in Medicare

    While Medicare entitlement can be a qualifying event for dependents, an employee's own enrollment in Medicare is specifically excluded as a COBRA qualifying event for the employee.

  4. A Health Flexible Spending Account (HFSA) is subject to which IRS rule that limits the carryover of unused funds?

    Answer: The 'use-it-or-lose-it' rule, with limited employer-allowed carryover options

    FSAs are governed by the 'use-it-or-lose-it' rule, though employers may offer a grace period or allow a limited carryover amount as permitted by the IRS.

  5. Under the ACA's employer shared responsibility (pay-or-play) provisions, which employers are considered 'applicable large employers' (ALEs)?

    Answer: Employers with 50 or more full-time equivalent employees

    Under the ACA, employers with 50 or more full-time equivalent (FTE) employees are classified as ALEs and must offer minimum essential coverage or face potential penalties.

  6. Which payroll document must an employer provide to employees annually to report wages, tips, and withheld taxes?

    Answer: Form W-2 (Wage and Tax Statement)

    Employers must furnish Form W-2 to each employee by January 31 of the following year, reporting annual wages, tips, and all tax withholdings.