APA CPP-Remote CPP Exam Practice Test Instant Access

Question 1

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

Atake a credit against FIT on Form 1040

Bdemand that the ER refund the overage

Capply the social security tax to next year's withholdings

Dapply the overage to benefits paid at age 65

Answer : A

Question 2

When an ER is advised by the IRS that an EE's Form W-4 is invalid, what action must the ER take?

AAll future Forms W-4 must be sent to the IRS as long as the EE is being paid.

BERs have no obligation to change exemptions unless notified by the EE through a new Form W-4.

CWithhold on the basis of information provided by the IRS.

DThe ER should send notice at the end of the quarter, requesting that the EE contact the IRS to clear up the problem.

Answer : C

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

All of the following actions demonstrate a strong customer service orientation EXCEPT:

Aexhibiting a customer friendly attitude

Bviewing customers as the most important part of the job

Cusing voice mail to answer phone calls from customers

Destablishing relationships with people

Answer : C

Question 5

Which form is used to request an ER identification number (EIN)?

AI-9

BSS-4

CSS-5

DSS-8

Answer : B

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