CPS Payroll Processing & Systems 3

Question 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?

Accepted Answer

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

Answer

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

Question 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?

Accepted Answer

Contact the employee directly to verify the change before processing

Answer

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

Question 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?

Accepted Answer

Cents-per-mile method

Answer

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

Question 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?

Accepted Answer

Social Security Number Verification Service (SSNVS)

Answer

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

Question 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?

Accepted Answer

$84.17

Answer

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

(CPS) Certified Payroll Specialist Practice Test

(CPS) Certified Payroll Specialist Practice Test

CPS Payroll Processing & Systems 3