CPS Regulatory Compliance & Standards 2

Question 1

Under the Portal-to-Portal Act, which activity is generally NOT compensable?

Accepted Answer

Commuting from home to the first worksite

Answer

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?

Accepted Answer

Form 940

Answer

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?

Accepted Answer

30 times

Answer

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?

Accepted Answer

90 days

Answer

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)?

Accepted Answer

Department of Labor Wage and Hour Division

Answer

The Wage and Hour Division of the Department of Labor enforces the EPPA, which generally prohibits employers from requiring lie detector tests.

(CPS) Certified Payroll Specialist Practice Test

(CPS) Certified Payroll Specialist Practice Test

CPS Regulatory Compliance & Standards 2