missed cpp quiz questions
For a nonqualified deferred compensation plan to exclude deferrals from income, distributions can be allowed:
-six months after separation for key employees of publicly-held companies. -when the employee's disability lasts for a continuous period of at least 12 months. -at the employee's death
Under National Medical Support Notice rules, a plan administrator must tell the state child support agency whether coverage is available for a child within:
40 business days.
When an employer receives an out-of-state child support order, the employer uses the employee's work state when applying the following rules EXCEPT: A medical support implementation. B administrative fee deductions. C maximum deduction amount permitted. D time period to implement the withholding order.
A medical support implementation.
All of the following methods are found in the state laws when allocating the amount withheld for multiple child support orders against an employee's wages EXCEPT: A whatever method is easiest for the employer. B the first order gets satisfied with any remaining amount allocated to the next order. C an equal amount is deducted for each order. D prorate allocation based on the amount of the orders and amount deducted.
A whatever method is easiest for the employer.
What wages and benefits received by an employee are subject to federal taxes and reporting? A. All wages and benefits unless the Internal Code provides an exception B. Only the cash wages paid to the employee are taxable C. All wages and benefits are taxable in all circumstances D. Only the wages and benefits listed as taxable in IRS publications
A. All wages and benefits unless the Internal Code provides an exception
When nonresident aliens complete a 2020 Form W-4, they must: A. Check the Single or Married filing separately box in Step 1. B. check the box in Step 2(c). C. indicate their country of residence. D. claim exempt from withholding in the space below Step 4(c).
A. Check the Single or Married filing separately box in Step 1.
What types of visas are available for foreign nationals seeking admission to the U.S.? A. Immigrant and nonimmigrant B. Immigrant and visitor C. Permanent and nonimmigrant D. Visitor and permanent
A. Immigrant and nonimmigrant
Which type of health plan provides a choice of a higher level of benefits and lower out-of-pocket costs if plan's participant uses providers who are in the network? A. Preferred Provider Organizations B. Traditional Health Insurance Plans C. State Health Care Exchanges D. Health Maintenance Organizations
A. Preferred Provider Organizations
If third-party sick pay is reported on Form W-2 under the name and EIN of the insurer, who is responsible for filing Form 8922, Third-Party Sick Pay Recap? A. The employer B. The employee C. The agent D. The insurer
A. The employer
For a nonqualified deferred compensation plan to exclude deferrals from income, distributions can be allowed: A. at a specified time when the deferral was made. B. at the end of the plan year. C. at the employee's election before termination of employment. D. at the end of the calendar year.
A. at a specified time when the deferral was made.
The payroll manager forms a committee to document the department's procedures for handling payroll, tax deposits, quarterly returns, liabilities, direct deposit, and other functions. The task used in forming the committee is defined as: A. organizing. B. controlling. C. directing. D. planning.
A. organizing.
All of the following characteristics describe Health Reimbursement Arrangements (HRA) EXCEPT: A. paid solely by the employee. B. unused amounts carry forward. C. reimburses medical care expenses. D. paid solely by the employer.
A. paid solely by the employee.
Optimum customer service within the payroll department includes all of the following principles EXCEPT: A. sympathy. B. assurance. C. reliability. D. tangibles.
A. sympathy.
In determining the source of income for services performed by a nonresident alien partly inside and partly outside the U.S., compensation may be determined based on any of the following procedures EXCEPT on: A. the date the employee returned to full-time U.S. employment. B. the ratio of full days worked in U.S. versus total number of days worked. C. the performance of specific action. D. a geographic basis.
A. the date the employee returned to full-time U.S. employment
In January, a senior vice president of a company received a nonqualified stock option to buy up to 500 shares of stock at $20.00 per share. In April, when the company stock was trading at $30.00, the employee exercised the option and purchased 500 shares of stock. The payroll department must: A. withhold federal income, social security, and Medicare taxes on $5,000.00 and report $5,000.00 in taxable compensation on Form W-2. B. withhold only social security and Medicare taxes on $10,000.00. C, withhold federal income, social security, and Medicare taxes on $10,000.00. D, withhold federal income, social security, and Medicare taxes on $5,000.00 and report $5,000.00 in taxable compensation on Form 1099-MISC.
A. withhold federal income, social security, and Medicare taxes on $5,000.00 and report $5,000.00 in taxable compensation on Form W-2.
Which of the following deferred compensation plans offers tax-sheltered annuities? A. 125 plan B. 403(b) plan C. 457(b) plan D. 401(k) plan
B. 403(b) plan
Which of the following items are included in the aggregate reportable cost reported on Form W-2, Box 12, using Code DD? A. Self-insured plans not covered by COBRA B. An increase in health insurance cost during the year C. Amounts contributed to an HSA D. Cost of an independent dental plan
B. An increase in health insurance cost during the yea
An employee's income is insufficient to pay for all scheduled deductions. The deductions, received in the following order, include a $60.00 creditor garnishment, a $125.00 charitable contribution, $300.00 for child support, and a $105.00 federal tax levy. Which deduction should be taken FIRST? A.Creditor garnishment B. Child support C. Charitable contribution D. Federal tax levy
B. Child support
Which of the following health insurance arrangements are taxable? A. Employer reimbursements of qualified medical expenses B. Discriminatory benefits provided in a self-insured plan to highly compensated employees C. Self-insured coverage for nonhighly compensated employees D. Sec.125 plan reimbursements
B. Discriminatory benefits provided in a self-insured plan to highly compensated employees
An employer's payroll system is breeched and the employer provides ID protection services to the employees. What are the tax consequences? A. Cash received in lieu of identify protection services are not taxable B. Identity protection services are not taxable C. Identity protection services are provided in a Sec. 125 plan D. Proceeds received under an identity theft insurance policy are not taxable
B. Identity protection services are not taxable
Qualified expenses under a Health Flexible Spending Arrangement incurred for over-the-counter medicine or drugs (except insulin) require: A. employer approval. B. a prescription. C. health plan approval. D. a receipt.
B. a prescription.
Managers delegate to their subordinates all of the following items EXCEPT: A. discipline. B. accountability. C. responsibility. D. authority.
B. accountability.
The following charateristics are advantages of a Zero Balance Payroll Bank Account EXCEPT: A. the bank account's beginning and ending balances every day should be zero. B. all payment types are automatically combined into one bank account. C. no funds are in the bank account until items are presented for payment. D. money is transferred to the bank account in the exact amount needed.
B. all payment types are automatically combined into one bank account.
All of the following conditions are required to qualify an expatriate for the foreign earned income or housing cost exclusions EXCEPT: A. having foreign earned income. B. being a highly compensated employee. C. meeting either the bona fide residence or physical presence test. D. having a tax home in a foreign country.
B. being a highly compensated employee.
According to Kotter, leadership is characterized as: A. security, guidance, wisdom, power. B. direction, alignment, motivation, change. C. guidelines, resources, accountability, consequences. D. planning, organizing, controlling, order.
B. direction, alignment, motivation, change.
Under FSA rules, the uniform coverage provision only applies to a(an): A. adoption assistance plan. B. health care plan. C. 401(k) deferred compensation plan. D. dependent care assistance plan.
B. health care plan.
IRC §125 generally prohibits the deferral of compensation from one plan year to the next. The exception to this rule includes all of the following benefits EXCEPT for: A. contributions to Health Savings Accounts (HSA). B. purchased vacation days. C. cash or deferred arrangements under IRC §401(k). D. the carryover of up to $500 in a Medical FSA.
B. purchased vacation days
An employee's deferrals to a nonqualified deferred compensation plan are subject to social security and Medicare taxes: A. when contributed to the 403(b) plan. B. when deferred from the employee's wages. C. when paid to the employee upon retirement. D. at the employer's discretion.
B. when deferred from the employee's wages.
When must an employee make a deferral election for a nonqualified deferred compensation plan?
By the end of the preceding tax year
A nonresident alien wishing to claim an exemption from income tax on wages paid by the employer based on a home country income tax treaty must provide the employer with Form: A W-4. B 2555. C 8233. D I-9.
C 8233.
Railroad employers are subject to a separate and distinct system of employment taxes, which includes all of the following EXCEPT: A. Medicare tax. B. federal unemployment tax. C. federal income tax. D. social security tax.
C. Federal Income Tax
Which of the following documents must be retained for at least four years? A. Work time schedules B. Wage rate tables C. The amount and date of an employee's wage payments D. Billing records
C. The amount and date of an employee's wage payments
In order for an employee on disability to have federal income tax withheld from third-party disability payments, he must submit to the insurance company Form: A.W-4P. B. W-9. C. W-4S. D. W-8.
C. W-4S.
Schedule R (Form 941) is used to: A. report daily tax deposits reported on Form 941 by semiweekly depositors. B. report daily tax liabilities on Form 941 for semiweekly depositors. C. allocate the aggregate information reported on Form 941 by an agent to each client. D. allocate discrepancies caused by acquisitions, statutory mergers, or consolidations.
C. allocate the aggregate information reported on Form 941 by an agent to each client.
All of the following benefits can be offered under a Sec. 125 plan EXCEPT: A. long-term disability insurance. B. deferred compensation to a 401(k) plan. C. scholarship and fellowship grants. D. additional vacation days.
C. scholarship and fellowship grants
Two factors of situational leadership are: A. authority and delegation. B. responsibility and accountability. C. tasks and relationships. D. motivation and decision making.
C. tasks and relationships.
The maximum holding period for §401(k) plan contributions is: A. the 15th day of the month following the month the deferrals occurred. B. the employer's next pay day. C. the 15th business day of the following month the deferral occurred. D. as soon as administratively possible.
C. the 15th business day of the following month the deferral occurred.
An employee's income is insufficient to deduct all the ordered wage attachments. The orders were received in the following order: bankruptcy order, child support order, state tax levy, and creditor garnishment. Which wage attachment has first priority?
Child support order
Which of the following employees are required to file Form W-4 with specific instructions, unlike that of a U.S. citizen? A. Resident aliens B. Commuters from Canada C. Commuters from Mexico D. Nonresident aliens
D. Nonresident aliens
Which of the following documents must be retained for at least four years? A. Collective bargaining agreements B. Record of employee's hours worked each week C. Record of employees' occupations D. Returned copies of Form W-2
D. Returned copies of Form W-2
Taxes withheld from fringe benefits are deposited with the IRS: A. at the employer's discretion. B. by the filing date of Form W-2. C. by the filing date of Form 941. D. according to the deposit rules for taxes withheld from regular earnings.
D. according to the deposit rules for taxes withheld from regular earnings.
Role plays and case studies are good ways to train payroll employees on principles of customer service, since these methods: A. take very little time. B. force all the employees to participate. C. emphasize procedures rather than results. D. are based on real-life customer service scenarios.
D. are based on real-life customer service scenarios.
A cafeteria plan may be funded by any of the following EXCEPT: A. flex dollars or flex credits. B. after-tax employee contributions. C. salary reduction. D. benefit exchange dollars.
D. benefit exchange dollars.
Form 8922, Third Party Sick Pay Recap, may be filed: A. only by an employer. B. only by an insurer. C. only by an agent. D. by an insurer, agent, or employer.
D. by an insurer, agent, or employer.
An example of a statutory nonemployee is a: A. driver who picks up and delivers dry cleaning. B. full-time life insurance agent selling annuity contacts. C. person who works at home on materials supplied by a company. D. person engaged in directly selling consumer products in the home.
D. person engaged in directly selling consumer products in the home.
`A nonresident alien employee from France who is married with three dependents completes a 2020 Form W-4. The employee must write NRA in the space below 4(c) and indicate in Step 1(c): A. married filing jointly. B. head of household. C. nothing. It is left blank. D. single or married filing separately
D. single or married filing separately
For a nonqualified deferred compensation plan to exclude deferrals from income, distributions can be allowed: A. at the employee's election before termination of employment. B. at the end of the calendar year. C. at the end of the month after the election to defer. D. six months after separation for key employees of publicly-held companies.
D. six months after separation for key employees of publicly-held companies.
Agreements between the U.S. and foreign countries designed to avoid double taxation of income are called: A. foreign earned income exclusions. B. totalization agreements. C. bona fide residence agreements. D. tax treaties.
D. tax treaties.
When an employee receiving payments from a third-party sick pay provider fails to complete a Form W-4S, how much, if any, federal income tax is withheld from the payments?
No federal income tax is withheld
Under the FLSA, all of the following factors are used in calculating a nonexempt employee's overtime premium EXCEPT: A.nondiscretionary bonus. B. regular rate of pay. C. paid time off. D. all hours worked.
Paid Time off
What is the minimum amount of declared tips an employee reports each month requiring an employer to withhold federal taxes from the employee's tips? a. $20.00 b. $30.00 c. $40.00 d. $50.00
a. $20.00
An employee earns $75,000.00 annually and is paid semimonthly. Last pay period, the employee had the following deductions: Federal income tax$285.00State income tax$131.00Social security tax$180.71Medicare tax$42.26Pre-tax health insurance$210.32401(k) plan$300.00 The employer receives a child support order for $1,500.00 per month. The employee is 20 weeks in arrears and is supporting another family. Calculate the child support order withholding for the semimonthly pay period. a. $750.00 b. $1,367.32 c. $1,491.62 d. $1,500.00
a. $750.00
What election do employees make when they choose to have the fair market value of stock included in income before the stock has been vested? a. 83(b) b. 125 c. 132(f) d. Special accounting rule
a. 83(b)
All of the following changes to the Income Withholding Order (IWO) are acceptable EXCEPT:
alterations to the format.
In addition to the FLSA, the following federal laws regulate minimum wages and overtime pay to employees working for employers who are federal government contractors EXCEPT: a. The Davis-Bacon Act b. The Small Business Act c. The McNamara-O'Hara Act d. The Contract Work Hours and Safety Standards Act
b. The Small Business Act
A retired employee receiving pension payments may decline federal income tax withholding by submitting Form: a. W-4. b. W-4P. c. W-4V. d. W-4S.
b. W-4P.
For each payday, an employer's federal tax liability is calculated by adding the total of all: a. federal income, social security, and Medicare tax withheld. b. withheld federal taxes plus the employer's share of social security and Medicare tax. c. federal income, social security, Medicare, and FUTA taxes. d. federal income tax withheld and the employer's share of social security and Medicare tax.
b. withheld federal taxes plus the employer's share of social security and Medicare tax.
When is Form 1042-S required to be provided to the IRS? a. January 31 b. February 28 c. March 15 d. March 31
c. March 15
A company is a semiweekly depositor. Its paydays are every other Tuesday. When are the company's payroll tax deposits due if each payday's tax liability is less than $100,000.00? a. By the next business day b. On or before the following Wednesday c. On or before the following Friday d. By the 15th day of the following month
c. On or before the following Friday
Certain totals on Forms W-2 must reconcile with similar totals reported on the: a. annual Form 940. b. annual Form 941. c. quarterly Forms 941. d. annual Form 945.
c. quarterly Forms 941.
An employee's contribution to a Roth 401(k) plan is reported as income when the:
contribution to the plan is made.
Under National Medical Support Notice rules, a plan administrator must tell the state child support agency whether coverage is available for a child within: a) 7 business days. b) 14 business days. c) 21 business days. d) 40 business days.
d) 40 business days.
Payments from a qualified pension plan are reported on Form: a. W-2. b. 1099-MISC. c. 1099-NEC d. 1099-R.
d. 1099-R.
Residents of Canada or Mexico who work solely in the U.S. and commute to work from home may claim how many dependents in Step 3 of the 2020 Form W-4? a. None b. 1 only if single c. 2 only if married d. Any number
d. Any number
Which of the following items can pension recipients specify on Form W-4P to determine their federal income tax withholding? a. Only allowances b. Only additional amounts to withhold c. Neither allowances nor additional amounts to withhold d. Both allowances and additional amounts to withhold
d. Both allowances and additional amounts to withhold
The total value of dependent care assistance benefits are reported on Form W-2 in: a. Box 1. b. Box 3. c. Box 5. d. Box 10.
d. Box 10.
A 16-year-old employee works part-time during the summer. Under the FLSA, what is the maximum hours, if any, the employee can work during a workweek? a. 8 hours per day b. 18 hours per week c. 40 hours per week d. There is no limitation on the number of hours that can be worked during the week.
d. There is no limitation on the number of hours that can be worked during the week.
If an employer receives more than one child support withholding order for an employee and the total amount exceeds the CCPA limit, the orders are allocated based on the:
employee's work state.
The National Medical Support Notice consists of two parts that are given to the:
employer and the health plan administrator.
The Debt Collection Improvement Act (DCIA) authorizes federal agencies to: A. place restrictions on how the states may regulate creditor garnishments. B. prioritize bankruptcy orders over federal and state tax levies received before the bankruptcy order. C. collect no more than 10% of disposable earnings to satisfy a delinquent student loan. D. garnish an employee's wages without a court order for delinquent nontax debt owed to the United States.
garnish an employee's wages without a court order for delinquent nontax debt owed to the United States
Under the FLSA, highly compensated employees are classified as exempt EXCEPT when: -performing non-manual work. -meeting one requirement of the administrative, professional, -executive or outside sales exemption. -annual compensation is $107,432.00 or more. -paid a weekly salary less than $684.00.
paid a weekly salary less than $684.00.
A qualified medical child support order:
recognizes the right of the child to be covered by a parent's group health plan.
When managing employees' Forms W-4 the employer must: A. verify an employee has entered amounts on the form accurately. B. file all new Forms W-4 with the IRS every year. C. advise employees how they should complete their Forms W-4. D. remind employees by December 1 to submit new Forms W-4 if their anticipated filing status or income tax liability has changed
remind employees by December 1 to submit new Forms W-4 if their anticipated filing status or income tax liability has changed
The minimum salary requirement does not apply to exempt professional employees who are: A. licensed funeral directors or embalmers. B. teachers working in an educational institution. C. registered or certified medical technologists. D. creative professionals performing work requiring originality.
teachers working in an educational institution
In the Electronic Income Withholding Order (e-IWO) process employers and state child support agencies can share all of the following information EXCEPT:
work state administrative fee schedule.
The voluntary agreement between a state and the federal Department of Health and Human Services (HHS) covering the state's employees under the social security and Medicare programs is known as a:
§218 agreement.