Free Certified Payroll Professional Exam CPP-Remote Exam Practice Test

Which of the following statements describes a self-insured workers' compensation plan?

• The state pays the workers' compensation payments.
• The ER funds the workers' compensation payments.
• The wages will continue as if the EE is still working.
• The individual EE is responsible for his own insurance.

All of the following steps are required when initiating direct deposit for an EE EXCEPT:

• prenoting
• receiving financial institution routing number
• getting authorization from the EE
• receiving EE's bank account number

Which of the following elements is essential to a disaster recovery plan?

• an excess supply of checks and direct deposit stubs
• a compatible off-site remote location to produce payrolls
• detailed documentation of current company policies
• a procedure for limiting security system access

The KEY advantage of using an automated time and attendance system is that it:

• identifies phantom EEs
• reduces errors
• interfaces with the payroll system
• frees supervisors from having to review hours

A payroll register for the pay period shows gross earnings of $300,000 and deductions of $120,000. The entry to the payroll expense account would be:

• $120,000
• $180,000
• $300,000
• $420,000

An EE who works for more than one ER and has exceeded the social security wage base may:

• take a credit against FIT on Form 1040
• demand that the ER refund the overage
• apply the social security tax to next year's withholdings
• apply the overage to benefits paid at age 65

One reason many companies use a Zero Balance Checking Account is that:

• cash is available for investment until items are presented for payment at the company's bank
• funds do not have to be deposited until the EE cashes the check
• the company receives interest on the account
• bank reconciliations are not required

Which of the following answers BEST defines the term nonexempt under the FLSA?

• a lower-paid class of EEs
• hourly-paid workers only
• EEs who must be paid OT
• a special class of EEs as determined by the ER

Which of the following plans describes a cafeteria plan under Section 125 of the Internal Revenue Code?

• a quantified and accountable expense reimbursement plan
• a tax-qualified retirement plan for public educational institutions
• a plan which permits EEs to select from two or more qualified taxable and nontaxable benefits
• a plan whereby state gov't EEs may request that pretax dollars be set aside in a retirement account until age 59

What is the purpose of the payroll accrual entry?

• to recognize expenses in the period in which they were incurred
• to reverse an entry made in error
• to recognize expenses in the period in which they were paid
• to reverse an entry from a previous period