Practice Test Geeks(CPS) Certified Payroll Specialist Practice Test
← All CPS Flashcard Decks

Payroll Compliance & Reporting Flashcards

7 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 7 Payroll Compliance & Reporting flashcards as text

  1. A garnishment order for child support requires an employer to withhold 55% of an employee's disposable earnings. The employee has no other garnishments. Under federal law, what is the maximum withholding allowed?

    Answer: 55% because the federal limit for child support is up to 60% (65% if arrears exceed 12 weeks)

    Federal CCPA limits for child support allow up to 60% of disposable earnings (65% if 12+ weeks in arrears), so 55% is within the legal limit.

  2. Which payroll tax form must agricultural employers use instead of Form 941 to report employment taxes?

    Answer: Form 943

    Agricultural employers report Social Security, Medicare, and federal income tax withholding on Form 943, not the standard Form 941.

  3. For Social Security tax purposes, what is the wage base limit for 2024?

    Answer: $168,600

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

  4. An employee's Form W-2 Box 12 shows Code DD. What does this code represent?

    Answer: Cost of employer-sponsored health coverage

    W-2 Box 12 Code DD reports the total cost of employer-sponsored health coverage, required under the ACA for informational purposes.

  5. A company pays its employees on a bi-weekly schedule. What is the maximum number of pay periods in a year for this frequency?

    Answer: 27

    A bi-weekly payroll typically has 26 pay periods, but some years produce 27 due to calendar alignment, requiring employers to plan for the extra period.

  6. Under IRC Section 132, which of the following employer-provided benefits is excludable from an employee's gross income as a 'de minimis' fringe benefit?

    Answer: Occasional meal money when an employee works overtime

    Occasional overtime meal money qualifies as a de minimis fringe benefit because of its infrequency and small value, making it excludable from gross income.

  7. What is the purpose of IRS Publication 15-T (Federal Income Tax Withholding Methods)?

    Answer: Provides tables and computational methods employers use to determine federal income tax withholding

    Publication 15-T contains the withholding tables and formulas employers use to calculate the correct amount of federal income tax to withhold from employee wages.