Practice Test Geeks(CPS) Certified Payroll Specialist Practice Test
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Payroll Fundamentals 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 Fundamentals flashcards as text

  1. An employee is paid semi-monthly. How many pay periods does she have in a full calendar year?

    Answer: 24

    Semi-monthly pay (twice per month) results in 12 months × 2 = 24 pay periods per year.

  2. Which of the following correctly describes the concept of constructive receipt in payroll?

    Answer: Wages are taxable when the employee has unrestricted access to them, even if not yet received

    Constructive receipt means income is taxable when it is made available without restriction, regardless of when the employee actually receives it.

  3. What is the standard lookback period the IRS uses to determine an employer's payroll tax deposit schedule?

    Answer: The 12-month period ending June 30 of the prior year

    The IRS lookback period is July 1 through June 30 of the year preceding the current calendar year to determine monthly vs. semi-weekly deposit schedules.

  4. A non-exempt employee's regular rate of pay must include which of the following when calculating overtime?

    Answer: Non-discretionary production bonuses

    Non-discretionary bonuses (promised or tied to production) must be included in the regular rate of pay for overtime calculation purposes under the FLSA.

  5. Which federal agency enforces the Fair Labor Standards Act (FLSA)?

    Answer: Department of Labor's Wage and Hour Division

    The Wage and Hour Division (WHD) of the U.S. Department of Labor is responsible for administering and enforcing the FLSA.

  6. When must employers deposit FUTA taxes if the cumulative liability exceeds $500 during a quarter?

    Answer: By the last day of the month following the quarter

    FUTA taxes must be deposited by the last day of the first month following the end of the quarter in which the $500 threshold was exceeded.

  7. Which of the following fringe benefits is generally excluded from an employee's gross income for federal tax purposes?

    Answer: Employer-paid group-term life insurance coverage up to $50,000

    Employer-paid group-term life insurance coverage up to $50,000 is excluded from employees' gross income under IRC Section 79.