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Certified Payroll Professional Question and Answers

Certified Payroll Professional

Last Update May 18, 2024
Total Questions : 249

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Questions 1

Portability describes the attribute of software to:

Options:

A.  

Print output in duplex

B.  

Use telephone lines to communicate between physical locations

C.  

Use video and audio

D.  

Execute on other platforms without application code modifications

Discussion 0
Questions 2

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

Options:

A.  

The employer funds the workers' compensation payments

B.  

The state pays the workers' compensation payments

C.  

The wages will continue as if the employee is still working

D.  

The individual employee is responsible for his own insurance

Discussion 0
Questions 3

"Mapping" in the context of a systems conversion refers to:

Options:

A.  

Defining resources needed for the project

B.  

Developing a flow chart of the conversion process

C.  

Downloads from the mainframe to a PC application

D.  

Matching data from one system to the data of another

Discussion 0
Questions 4

What does the following journal entry represent? Debit State Unemployment Tax Payable $6,340.00 Credit Cash $6,340.00?

Options:

A.  

The payment of state unemployment tax one or more states

B.  

An entry to correct tax withheld

C.  

The accrual of state unemployment tax liabilities

D.  

A record of tax deductions

Discussion 0
Questions 5

An employee contributes $2,000 on a pretax basis to a 401(k) qualified plan. How is this pretax contribution reported on the 2009 W-2?

Options:

A.  

Boxes 3/5, box 12, box 13 (retirement plan)

B.  

Boxes 3/5, box 13, (retirement plan)

C.  

Box 12, box 13 (retirement plan)

D.  

Box 1, box 3/5, box 13 (retirement plan)

Discussion 0
Questions 6

An advantage of client/server technology for payroll is:

Options:

A.  

Maintenance fees from the vendor are eliminated

B.  

Fewer programmers are required to maintain the payroll

C.  

Time required to balance a payroll is reduced.

D.  

Programs and database need not be stored on the mainframe

Discussion 0
Questions 7

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

Options:

A.  

permanently

B.  

4 years or until the file is no longer active

C.  

3 years

D.  

7 years

Discussion 0
Questions 8

Which for the following statements is true?

Options:

A.  

A company's fiscal year must not be the same as the calendar year

B.  

A company's fiscal year must be the same as the calendar year

C.  

A company may designate its fiscal year to cover 12 months that differ from the calendar year

D.  

A company must produce Forms W-2 at the end of its fiscal year regardless of the calendar

Discussion 0
Questions 9

Which of the following is not delegated to others?

Options:

A.  

Ability

B.  

Accountability

C.  

Authority

D.  

Responsibility

Discussion 0
Questions 10

An employee of a state law enforcement agency worked 45 hours in the workweek. Under FLSA, how much compensatory time off must this employee receive in lieu of overtime pay?

Options:

A.  

10.0 hours

B.  

5.5 hours

C.  

2.5 hours

D.  

7.5 hours

Discussion 0
Questions 11

The entry to recorded an employee's repayment of a salary advance is (employee repays advance by personal check):

Options:

A.  

Debit accounts receivable, credit cash

B.  

Debit salary expense, credit accounts receivable

C.  

Debit accounts receivable, credit cash

D.  

Debit cash, credit accounts receivable

Discussion 0
Questions 12

As part of the implementation of a new payroll system, all transactions from the most recent actual payroll are processed in the new system prior to using the system to run payrolls. This is an example of what type of testing?

Options:

A.  

back-up

B.  

ongoing

C.  

compliance

D.  

parallel

Discussion 0
Questions 13

Which of the following would never be delegated to a manger's subordinates?

Options:

A.  

Accountability

B.  

Responsibility

C.  

Authority

D.  

All of the above

Discussion 0
Questions 14

Which of the following is a reasonable approach when discussing an employee's poor performance?

Options:

A.  

Assign additional responsibilities

B.  

Provide examples of the performance issues

C.  

Delegate the discussion to one of the employee's peers

D.  

Raise the issues during the next departmental meeting

Discussion 0
Questions 15

Penalties for failure to make timely deposits are determined by:

Options:

A.  

a four-tiered penalty structure based on the number of days the deposit is late

B.  

15% of the undeposited amount with a maximum of $100,000

C.  

a flat rate of 10% for late deposits

D.  

5% of the undeposited amount with a maximum of $100,000

Discussion 0
Questions 16

For purposes of the FLSA, a payroll register must be retained for a period of not less than how many years?

Options:

A.  

5

B.  

3

C.  

4

D.  

2

Discussion 0
Questions 17

What is the difference between policy and a procedure?

Options:

A.  

None, they serve the same purpose

B.  

Policies are rules; procedures are instructions

C.  

Procedures need to be documented; policies do not

D.  

Policies can be overridden; procedures may not

Discussion 0
Questions 18

The entry to record an employee's repayment of a salary advance is (employee repays advance by personal check):

Options:

A.  

Debit cash, credit accounts receivable

B.  

Debit cash, credit wages payable

C.  

Debit salary expense, credit accounts receivable

D.  

Debit accounts receivable, credit cash

Discussion 0
Questions 19

The penalty for failure to withhold wages under a federal tax levy notice is:

Options:

A.  

75% of the amount not withheld

B.  

100% of the amount not withheld

C.  

150% of the amount not withheld

D.  

50% of the amount not withheld

Discussion 0
Questions 20

Which of the following would not be included in the system testing stage of an implementation?

Options:

A.  

Volume testing

B.  

Functional testing

C.  

Recruiting tests

D.  

Stress testing

Discussion 0
Questions 21

An employer may exclude a business reimbursement from income when the employee's expenses meet which of the following requirements?

Options:

A.  

Reimbursements are made with regular payroll

B.  

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

C.  

Expenses are substantiated and excess advances are returned

D.  

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

Discussion 0
Questions 22

A statutory employee's pay is subject to which of the following taxes?

Options:

A.  

None

B.  

Federal income tax, Social Security, and Medicare

C.  

Social Security, Medicare and FUTA

D.  

Federal income tax

Discussion 0
Questions 23

Each month ABC Company records the amount of after-tax long-term disability (LTD) insurance purchased by its employees who elected to purchase this insurance. The deduction is equal to the cost of the insurance. In the month following the deduction, the insurance company invoices ABC Company. ABC then pays the invoice. At the end of April, the balance in the LTD general ledger liability account is $438.40. What does this balance represent?

Options:

A.  

Amounts paid to the insurance company

B.  

Over-payments to the insurance company

C.  

Amounts that have been deducted but not paid to the insurance company

D.  

Amounts deducted from employees who have terminated employment

Discussion 0
Questions 24

An employer may accept a child support order directly served from another state without risk of liability under which of the following laws?

Options:

A.  

ERISA

B.  

URESA

C.  

OCSE

D.  

UIFSA

Discussion 0
Questions 25

If a company is examining the feasibility of purchasing an integrated human resource information system (HRIS), what approach is best?

Options:

A.  

Instruct each user area to conduct an independent search for a software vendor

B.  

Assign the search task to the information systems staff who have prior experience in each HRIS discipline

C.  

Assemble a team of information system staff and potential users to conduct the search

D.  

Authorize the company's payroll manager to select the vendors from which to choose

Discussion 0
Questions 26

One reason many companies use a Zero Balance checking account is that:

Options:

A.  

funds do not have to be deposited until the employee cashes the check

B.  

the company receives interest on the account

C.  

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

D.  

bank reconciliations are not required

Discussion 0
Questions 27

Which of the following is the first step on goal-setting?

Options:

A.  

Ask other department managers for copies of their written plans

B.  

Review the department members' performance appraisals

C.  

Develop a plan of action

D.  

Obtain salary history for all staff members

Discussion 0
Questions 28

An employer that deposits payroll taxes semiweekly incurs a tax liability of $55,000 on Tuesday and a liability of $110,000 on Wednesday. When should the taxes be deposited?

Options:

A.  

$110,000 on Thursday and $55,000 on Friday

B.  

$165,000 on Thursday

C.  

$55,000 on Thursday and $110,000 on Friday

D.  

$55,000 on Friday and $110,000 on the next Wednesday

Discussion 0
Questions 29

Which of the following would NOT be an asset account?

Options:

A.  

Work-in-progress

B.  

Cash

C.  

Employee receivables

D.  

Wages payable

Discussion 0
Questions 30

The correct entry to record a payment of the employer's share of FICA tax is:

Options:

A.  

Debit salary expense, credit tax withheld

B.  

Debit payroll tax expense, credit cash

C.  

Debit tax withheld, credit salary expense

D.  

Debit cash, credit payroll tax expense

Discussion 0
Questions 31

Copies of the production files and most recent payroll transactions are sent nightly to the parent company in a remote location. this practice is part of what type of plan?

Options:

A.  

disaster recovery

B.  

security

C.  

control

D.  

maintenance

Discussion 0
Questions 32

Under theĀ FLSA, how many hours would be paid at time and one half for the following biweekly period, assuming that the employee is an garment worker?

Options:

A.  

0

B.  

0.5

C.  

8

D.  

8.5

Discussion 0
Questions 33

In keeping with internal control best practices, which of the following would probably not be included in the job description of a payroll specialist?

Options:

A.  

Verifying proper authorization appears on change documents

B.  

Reconciling payroll bank account

C.  

Preparing requisition for remitting child support deductions

D.  

Entering employee tax jurisdiction information from Form W-4

Discussion 0
Questions 34

If an employee fails to furnish the employer with a Form W-4, the employer is required to withhold federal income tax at the rate of:

Options:

A.  

Single and 1 allowance

B.  

Single and 0 allowances

C.  

Married and 0 allowances

D.  

Married and 2 allowances

Discussion 0
Questions 35

Under FLSA, how many hours must be paid at the overtime rate of pay for the following biweekly period:

Represents 8 hours of sick pay leave:

Options:

A.  

10

B.  

16

C.  

2

D.  

0

Discussion 0
Questions 36

Under the FLSA, which of the following restrictions apply when hiring minors under the age 18?

Options:

A.  

Work cannot be performed pursuant to jobs considered hazardous by the U.S. Department of Labor

B.  

They are not subject to overtime

C.  

Social Security and Medicare are not deducted for the first 90 days

D.  

If the employees do not have drivers' licenses, the employer may not hire them

Discussion 0
Questions 37

A U.S. citizen working for a foreign employer outside the United States is subject to which of the following taxes?

Options:

A.  

Federal income tax withholding only

B.  

Federal income tax withholding, Social Security, Medicare, and FUTA

C.  

None

D.  

Social Security and Medicare only

Discussion 0