Practice Test Geeks(CPS) Certified Payroll Specialist Practice Test
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Payroll Processing & Systems 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.

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  1. Which method is used to determine the regular rate of pay for a non-exempt employee who receives a flat-sum bonus that is not tied to hours worked?

    Answer: Add the bonus to total straight-time earnings and divide by total hours worked

    FLSA requires flat-sum bonuses to be included in the regular rate by dividing the total compensation (including the bonus) by total hours worked.

  2. A payroll system's audit log shows a change to an employee's bank routing number two hours before the pay run. What is the MOST appropriate response?

    Answer: Contact the employee directly to verify the change before processing

    Direct confirmation with the employee prevents misdirected payments caused by unauthorized banking changes, a common payroll fraud vector.

  3. Under IRS rules, when an employer provides a vehicle to an employee for personal use, which valuation method uses the standard IRS mileage rate applied to personal miles?

    Answer: Cents-per-mile method

    The cents-per-mile method values personal use of a company vehicle by multiplying personal miles driven by the IRS standard mileage rate.

  4. Which payroll process ensures that employee Social Security numbers (SSNs) submitted to the IRS match Social Security Administration (SSA) records before W-2 filing?

    Answer: Social Security Number Verification Service (SSNVS)

    The SSA's SSNVS allows employers to verify that name/SSN combinations match SSA records, reducing W-2 error penalties.

  5. An employee works 48 hours in a workweek at $20/hr and also receives a $100 production bonus. What is the correct FLSA overtime premium owed?

    Answer: $84.17

    Regular rate = (48×$20 + $100)/48 = $1,060/48 ≈ $22.08; overtime premium = $22.08 × 0.5 × 8 OT hours ≈ $84.17.

  6. Which feature of a payroll system reduces the risk of duplicate payments when processing manual (off-cycle) checks?

    Answer: Dual-approval workflow requiring manager and payroll sign-off

    A dual-approval workflow requires independent review before a manual check is issued, preventing unauthorized or duplicate payments.

  7. A company using a third-party payroll provider (TPSP) remains ultimately responsible to the IRS for which of the following?

    Answer: Timely deposit of federal employment taxes

    Even when using a TPSP, the employer retains legal responsibility for timely federal tax deposits; penalties fall on the employer if the TPSP fails.