FREE CPP Basic Questions and Answers

Question 1

What kind of employee is considered as a statutory employee?

Accepted Answer

A life insurance salesperson who works full-time

Answer

A temporary agency employee

Answer

Real estate agent

Answer

Accountant

Question 2

What is the minimum pay for a worker who gets tipped for services rendered?

Accepted Answer

$2.13

Answer

$6.25

Answer

$5.13

Answer

$2.75

Question 3

Which employment tax is exempt from having to be withheld from employees' paychecks?

Accepted Answer

Federal unemployment tax

Answer

Medicare

Answer

Federal income tax

Answer

Social Security

Question 4

What is the highest salary level in 2025 that will be subject to Social Security taxes?

Accepted Answer

$160,200

Answer

$145,000

Answer

$130,000

Answer

$100,000

Question 5

When is it possible for an employer to gross up an employee's income?

Accepted Answer

Increasing a bonus to offset additional taxes that the employee will have to pay.

Answer

To cover the cost of employee perks like life insurance or contributions to retirement plans

Answer

Paying employees more than they are entitled to is against the law.

Answer

Wage increases to meet federal withholding tax obligations

Question 6

What form is used by the Internal Revenue Service (IRS) to report Federal Unemployment Tax (FUTA) paid by an employer?

Accepted Answer

Form 940

Answer

Form 1042

Answer

Form SS-8

Answer

Form 843

Question 7

At what point does an organization need to obtain an IRS Form W-9 from an individual?

Accepted Answer

Both A and B

Answer

In order for contributors to be eligible for a tax deduction

Answer

When employing an independent contractor

Answer

None of the above

Question 8

What is the minimum age that an employee may operate a motor vehicle on public roads?

Accepted Answer

17 years old and fulfilling the weight and driving experience requirements for the vehicle

Answer

17 years old and have completed a driving education program

Answer

18 years old

Answer

16 years old with consent from parents

Question 9

Which test is not necessary to be exempt as a creative professional employee under the FLSA?

Accepted Answer

The business needs to retain the copyright on the work.

Answer

The work needs to call for creativity, ingenuity, or skill.

Answer

A minimum of $684 per week in wages or fees

Answer

The work has to be in an acknowledged artistic discipline.

Question 10

What is the eligibility criteria for benefits under the 1993 Family and Medical Leave Act for an employee?

Accepted Answer

A minimum of 12 months of employment with the company, with 1,250 hours completed within the last 12 months

Answer

1,200 hours completed within the last 12 months

Answer

1,000 hours completed within the last 12 months

Answer

A minimum of 24 months of employment with the company, with 1,250 hours completed in the most recent year