OCPS Case Analysis & Practical Application 3

Question 1

A payroll manager receives a creditor garnishment for an employee whose disposable earnings are $600/week. Under federal CCPA limits, what is the maximum that can be garnished?

Accepted Answer

$150

Answer

Under CCPA, the maximum for a creditor garnishment is the lesser of 25% of disposable earnings ($150) or the amount exceeding 30 times the federal minimum wage.

Question 2

An employee receives a $5,000 non-accountable plan expense reimbursement. How should payroll treat this amount?

Accepted Answer

Include it in wages and withhold taxes

Answer

Non-accountable plan reimbursements are included in the employee's wages and subject to withholding and payroll taxes.

Question 3

An employer wants to implement direct deposit but an employee refuses. What is the employer obligated to do?

Accepted Answer

Provide an alternative payment method allowed by state law

Answer

Most state laws require employers to offer an alternative to direct deposit if an employee objects, such as a paper check or pay card.

Question 4

A company transitions from weekly to biweekly payroll mid-year. Which document must be updated immediately to reflect the new withholding amounts?

Accepted Answer

IRS Publication 15-T withholding tables

Answer

IRS Publication 15-T provides withholding tables that correspond to payroll frequency, so the new biweekly tables must be used.

Question 5

An employee is paid a draw against future commissions of $2,000. That pay period the employee earns $1,500 in commissions. How is the $500 deficit treated?

Accepted Answer

Carried forward as a recoverable advance against future earnings

Answer

A draw against commissions creates a recoverable advance; the $500 deficit is carried forward and offset against future commission earnings.

(OCPS) Online Certified Payroll Systems Certified Professional Practice Test

(OCPS) Online Certified Payroll Systems Certified Professional Practice Test

OCPS Case Analysis & Practical Application 3