APA CPP-Remote CPP Exam Practice Test Instant Access

Question 1

Which of the following forms may be submitted to the IRS in order to receive a written determination of a worker's status as an EE or independent contractor?

AForm W-5

BForm SS-5

CForm SS-8

DForm W-9

Answer : C

Question 2

When checking for phantom EEs, which of the following actions should be taken?

ANotify the EEs of an impending physical payout.

BHave the managers hand checks out to their EEs.

CHave EEs pick up checks and direct deposit/paycard advices and show identification.

DMail checks directly to EEs' homes.

Answer : C

Question 3

Payroll system user documentation should include:

Aa copy of the RFP

Bcopies of project development documents

Cdetails of disaster recovery procedures

Dthe history of the payroll system conversaion

Answer : C

Question 4

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:

A$120,000

B$180,000

C$300,000

D$420,000

Answer : C

Question 5

How may FIT be withheld from separation pay and accrued vacation wages totaling $20,000 that are paid at the time of termination and identified separately on the EE's pay stub, if the EE has been paid $25,000 so far this year and had income tax withheld from her most recent wage payment?

Ausing the aggregate method only

Busing the prior 12 months' tax rate

Cat the optional flat rate for all payouts at termination only

Dat the optional flat rate or using the aggregate method

Answer : D

Question 6

ERs in non-credit reduction states that pay their state unemployment taxes on time can deduct up to what percentage from the full FUTA tax rate in calculating their FUTA tax payments?

A0.6%

B4.5%

C5.4%

D6.0%

Answer : C

Question 7

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

Aa quantified and accountable expense reimbursement plan

Ba tax-qualified retirement plan for public educational institutions

Ca plan which permits EEs to select from two or more qualified taxable and nontaxable benefits

Da plan whereby state gov't EEs may request that pretax dollars be set aside in a retirement account until age 59

Answer : C

APA CPP-Remote Certified Payroll Professional CPP Exam Practice Test