APA CPP-Remote CPP Exam Practice Test Instant Access

Question 1

An ER may exclude a business expense reimbursement from income when the EE's expenses meet which of the following requirements?

AReimbursements are made with regular payroll.

BExpenses are substantiated and excess advances are returned timely

CExpenses are business-related, substantiated, and excess advances are retained for future travel.

DExpenses are business-related, substantiated, and excess advances are returned timely.

Answer : D

Question 2

From which of the following taxes are statutory workers' compensation payments exempt?

AFIT only

BFICA only

CFUTA only

DFIT, FICA, and FUTA taxes

Answer : D

Question 3

ER-sponsored athletic facilities may be nontaxable fringe benefits if the:

AER requires substantiation of the amount, time, and business purpose of the facilities' use

BER incurs no substantial additional cost, except labor, to provide the facilities

Cfacilities are on the ER's premises

Dfacilities qualify as a de minimis fringe

Answer : C

Question 4

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

Acash is available for investment until items are presented for payment at the company's bank

Bfunds do not have to be deposited until the EE cashes the check

Cthe company receives interest on the account

Dbank reconciliations are not required

Answer : A

Question 5

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

Question 6

Under the FLSA, how long are ERs required to keep records relating to wages, hours, and conditions of employment?

A3 years

B4 years or until the file is no longer active

C7 years

Dpermanently

Answer : A

Question 7

Documenting payroll policies and procedures will provide all of the following results EXCEPT:

Aa vehicle for improving processes

Ba tool for assessing internal business controls

Ca mechanism for educating payroll partners, suppliers, and customers

Dassurances of payroll personnel competency and performance

Answer : D

APA CPP-Remote Certified Payroll Professional CPP Exam Practice Test