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.

Read the first 7 Payroll Processing & Systems flashcards as text

  1. What is the purpose of a payroll bank account reconciliation at period end?

    Answer: To ensure all checks and ACH transactions cleared and outstanding items are identified

    Bank reconciliation matches the payroll account balance per books to the bank statement, identifying uncleared items and catching errors or fraud.

  2. Which IRS form must an employer file to correct a previously filed Form 941?

    Answer: Form 941-X

    Form 941-X is the Adjusted Employer's Quarterly Federal Tax Return used to correct errors on a previously filed Form 941.

  3. An employee is paid on a commission-only basis and earns no wages in a particular workweek despite working 45 hours. What does FLSA require?

    Answer: The employer must pay at least minimum wage for all hours worked

    FLSA requires non-exempt employees to receive at least the federal minimum wage for every hour worked, regardless of commission earnings.

  4. In a payroll system, what is the function of a 'shadow payroll'?

    Answer: A payroll run in the host country for employees on international assignment to meet local tax obligations

    A shadow payroll is run in the host country for expatriate employees to satisfy local reporting and tax withholding obligations while the home-country payroll continues.

  5. Which of the following correctly describes the look-back period used to determine an employer's federal deposit schedule for 2026?

    Answer: October 1, 2024 through September 30, 2025

    The look-back period for determining the 2026 deposit schedule is the 12-month period ending September 30, 2025.

  6. A payroll specialist must enter a court-ordered child support withholding. Which federal law governs the maximum amount that can be withheld?

    Answer: Consumer Credit Protection Act (CCPA) Title III

    CCPA Title III limits child support garnishments to 50–65% of disposable earnings depending on the employee's support obligations and arrearage status.

  7. Which payroll system report is MOST useful for identifying employees who have not taken any paid time off (PTO) accruals during the year, potentially indicating a policy compliance issue?

    Answer: PTO accrual and usage detail report

    The PTO accrual and usage detail report tracks both earned and used leave balances, revealing employees with zero usage who may need to comply with mandatory use policies.