CPS Regulatory Compliance & Standards 2 — Questions and Answers
Question 1: Under the Portal-to-Portal Act, which activity is generally NOT compensable?
- Walking between worksites during a shift
- Commuting from home to the first worksite (Correct answer)
- Donning required safety equipment before work
- Waiting time that is 'suffered or permitted'
Correct answer: Commuting from home to the first worksite
The Portal-to-Portal Act excludes ordinary home-to-work commuting time from compensable hours under the FLSA.
Question 2: Which IRS form must employers file annually to report FUTA tax liability?
- Form 941
- Form 944
- Form 940 (Correct answer)
- Form 945
Correct answer: Form 940
Form 940 is the Employer's Annual Federal Unemployment (FUTA) Tax Return, filed once per year.
Question 3: An employee's wages are subject to garnishment. Under Title III of the Consumer Credit Protection Act, the maximum weekly garnishment for non-child-support debts is limited to the lesser of 25% of disposable earnings or the amount by which disposable earnings exceed how many times the federal minimum wage?
- 20 times
- 25 times
- 30 times (Correct answer)
- 40 times
Correct answer: 30 times
Title III caps garnishment at the lesser of 25% of disposable earnings or the amount exceeding 30 times the federal minimum wage.
Question 4: Under ERISA, what is the maximum number of days after the close of a plan year that a Summary Annual Report (SAR) must be distributed to participants?
- 60 days
- 90 days (Correct answer)
- 120 days
- 180 days
Correct answer: 90 days
The SAR must be furnished to participants within 9 months after the close of the plan year, but if filing an extension the SAR is due within 2 months after the extended due date — generally 9 months equals approximately 270 days, but the standard rule is 9 months; however the distribution deadline after the Form 5500 due date is 2 months, which is roughly 60 days after the 7-month extended deadline.
Question 5: Which agency enforces the Employee Polygraph Protection Act (EPPA)?
- IRS
- Department of Labor Wage and Hour Division (Correct answer)
- EEOC
- Social Security Administration
Correct answer: Department of Labor Wage and Hour Division
The Wage and Hour Division of the Department of Labor enforces the EPPA, which generally prohibits employers from requiring lie detector tests.
Question 6: What is the current Social Security wage base threshold for 2024?
- $147,000
- $160,200
- $168,600 (Correct answer)
- $176,100
Correct 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.
Question 7: Under the Uniform Services Employment and Reemployment Rights Act (USERRA), how long must an employer hold a job for an employee on military leave lasting more than 180 days?
- 6 months
- 1 year
- 2 years
- 5 years (Correct answer)
Correct answer: 5 years
USERRA requires reemployment rights for up to 5 years of cumulative military service, after which the employee must apply for reemployment within specified timeframes.
CPS Regulatory Compliance & Standards 2
Under the Portal-to-Portal Act, which activity is generally NOT compensable?