Certified Payroll Professional CPP-Remote Dumps Guide

test2022-10-12T06:26:51+00:00

Certified Payroll Professional CPP-Remote Dumps Guide is designed by experts to help for your CPP exam preparation. The CPP exam is designed for experienced payroll professionals, managers, and supervisors. It places emphasis on higher-level skills, including management and payroll systems. These Certified Payroll Professional CPP-Remote Dumps Guide can help you clear your doubts and prepare for the exam, so that you can prepare and pass the CPP-Remote exam on your first try.

You should try CPP-Remote practice test to assess yourself.

Page 1 of 7

1. Which of the following is an example of a system production control technique?

Payroll department members change their passwords each week

External auditors verify payroll account balances prior to commenting on financial statements

Cut-off dates for data entry are established with remote users

Check stock is maintained under lock and key

2. Which of the following would probably not require an electronic interface from the payroll/human resources system?

Originating bank for direct deposit

401(k) administrator

External audit firm

Payer of push money

3. Employee Cindy's employer remits to her payment of $620 in 2009 for substantiated meal expenses she incurred while moving from her old residence to her new work location.

How should this reimbursement be reported on Cindy's 2009 federal W-2?

Box 1 only

Boxes 1, 3, 5, and 12

Boxes 1, 3, and 5

Box 12 only

4. The final due date for the second quarter Form 941, assuming that the employer paid all taxes on time is:

August 10

June 30

July 10

July 31

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

The payment of state unemployment tax one or more states

An entry to correct tax withheld

The accrual of state unemployment tax liabilities

A record of tax deductions

6. What is the purpose of the payroll accrual entry?

to reverse an entry from a previous period

to recognize expenses in the period in which they were incurred

to reverse an entry made in error

to recognize expenses in the period in which they were paid

7. Which of the following statements is CORRECT regarding a federal tax levy?

It does not have to be honored if any other garnishments have been served.

It is limited only by the amount of the employee's net pay

It is continued each pay period until a release of levy is received.

It requires a new order for each pay period.

8. 1.Which of the following does NOT represent a deductible business expense?

Lodging while on business travel

Golfing event following a business meeting

Dry cleaning charges while out of town on business

Country club dues

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

federal income, social security, Medicare, and federal unemployment taxes

social security and Medicare taxes only

federal unemployment tax only

federal income tax only

10. Use of which of the following contributes to the security of the payroll system?

Field level access restriction

Aggregate withholding

Reversal entry

Quality program

Page 2 of 7

11. Bass Biting Company operates bait, tackle and boat sales store employing 12 full time clerks and salespeople in addition to the owner and his family members. Occasionally, Bass Biting assigns special work to individuals other than its regular employees and family members. Bass Biting engaged a carpenter, Jim to build a boat dock so that customers could access the shop via boat. Jim has several docks in progress for other local merchants. Bass Batting’s dock took 4 days to build, 13 hours each day. Bass Biting paid Jim $500 for 4 days' work. Calculate overtime due Jim under FLSA.

$57.72

$557.44

$173.04

12. Which of the following employers are exempt from the provisions of IRCA?

Privately held employers

Employers with annual revenues under $10,000

All employers are subject to compliance

Employers with less than 2 employees

13. The employer may classify a worker as an independent contractor if the worker:

Signs a contract

Furnishes his or her own tools and supplies

Fails the common-law test

Is retired or over age 65

14. Under FLSA , what is the compensation due an employee whose rate of pay is $8 per hour and who is paid for 52 hours during a one-week period, including 8 hours of sick pay?

$448

$464

$432

$416

15. Which of the following would NOT be an asset account?

Work-in-progress

Cash

Employee receivables

Wages payable

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

17. Jane voluntarily separated from employment. She is allowed to continue paying for her medical insurance at cost plus 2% under what legislation?

Fair Labor Standards Act of 1948

Family and Medical Leave Act of 1993

Tax Reform Act of 1986

Consolidated Omnibus Budget Reconciliation Act of 1985

18. What is the payroll department manager responsible for in a company with strong internal controls?

writing the internal audit transaction test plan

development company policy

assuring segregation of duties in the department

initiating payroll transactions

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

Defining resources needed for the project

Developing a flow chart of the conversion process

Downloads from the mainframe to a PC application

Matching data from one system to the data of another

20. Choose the statement that represents the best implementation of internal control:

Payroll master file changes are reviewed by human resources

Supervisors input increases and new hires to the payroll master file

The bank is instructed to send canceled checks directly to the payroll manager

Payroll computes cost-of-living increases for employees

Page 3 of 7

21. In a customer service situation, Payroll should:

get in the last word

avoid addressing stressful issues

assure the caller everything is okay, even when it's not

remain assertive and stays focused

22. What is one of the major considerations when evaluating and selecting a software system for payroll?

The sale's representative's knowledge of payroll

The arrangement of the panels for on-line data entry

The number of trainers the software has available

The fit of the technical platform with the company's strategic plans

23. For how many years must the employer's copy of Form 940 be retained?

24. What is the total amount that must be reported in box 14?

$4,980

$ 0

$10,480

$23,582

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

75% of the amount not withheld

100% of the amount not withheld

150% of the amount not withheld

50% of the amount not withheld

26. Employee Dan, a sales representative, is reimbursed for business travel expenses incurred for out-of-town trips. Dan completes an expense report each month showing the date expenses were incurred and receipts substantiating the amount of the expenses. In August, Dan's employer reimbursed travel expenses of $500 for meals, $1,200 for hotels, and $900 for airfare. Choose the answer that properly reflects the income Dan must declare and the corporate tax deduction that Dan's employer may claim

Dan's income =$500; Employer's deduction = $2,350

Dan's income =$0; Employer's deduction = $2,600

Dan's income =$250; Employer's deduction = $2,600

Dan's income =$0; Employer's deduction = $2,350

27. Which of the following is tax-free to all employees even if only provided to highly paid employees?

Cafeteria plans

Athletic facilities

401(k) plans

Transportation fringe benefits

28. Under IRS suggested guidelines, an employee should be allowed a maximum of how many days after receiving an expense advance to provide substantiation for the amount to the employer?

90 days

60 days

30 days

45 days

29. Use of which of the following contributes to the security of the payroll system?

Direct deposit

Accountable plan

Diplomatic leadership

User password

30. Flawless Flower Shops accepts payments for flowers and local delivery from customers anywhere in the United States. The employees of Flawless typically work 6 days a week.

How must they be compensated?

Overtime must be paid on a daily basis

Compensatory pay is allowed for hours over 80 in a biweekly pay period

Overtime is due for hours worked over 40 in a workweek

Double time is required for work on holidays

Page 4 of 7

31. The entry to record a salary advance to an employee is:

Debit cash, credit accounts receivable

Debit accounts receivable, credit cash

Debit salary expense, credit cash

Debit salary expense, credit wages payable

32. A manager who embraces the theory of situational leadership is most likely to emphasize:

The need for employees to have freedom in getting their work done

Quick decision making and prompt reaction to events

Versatility in the approach used in dealing with subordinates

Strict adherence to all company policies and procedures

33. The form used to report wages paid to nonresident aliens that are exempt from federal income tax under a treaty is:

W-2

1042-S

5500

W-8BEN

34. Which of the following employees is most likely to be an exempt professional under FLSA?

Labor Relations Director

Accounts payable clerk

Payroll specialist

Human resources receptionist

35. Company deadlines for payroll data input documents are essential for:

timely processing of the payroll

guaranteeing that all information is processed

accurate entry of data

adequate auditing purposes

36. Which of the following describes a plan involving the entire organization for carrying on a company's business in the event of a major disaster?

Groupware

Implementation plan

Production plan

Business continuity

37. 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?

Amounts paid to the insurance company

Over-payments to the insurance company

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

Amounts deducted from employees who have terminated employment

38. Which of the following would not be included in the job description of a payroll specialist?

Calculating bonus and severance pay

Entering direct deposit information

Sorting checks and deposit statements for distribution

Crafting policy for employee benefits

39. Documenting payroll policies and procedures will provide all of the following results

EXCEPT:

a mechanism for educating payroll partners, suppliers, and customers

assurances of payroll personnel competency and performance

a tool for assessing internal business controls

a vehicle for improving processes

40. An employee earns $9 per hour and an additional 10 cents per hour for hours worked after 7:00 p.m.

If an employee works from 3:00 p.m. to 11:00 p.m., Monday through Friday, what is the employee's weekly gross pay under the Fair Labor Standards Act?

$360

$362

$364

$361

Page 5 of 7

41. Which of the following groups BEST defines the term nonexempt under the FLSA?

hourly-paid workers only

a lowered-paid class of employees

a special class of employees as determined by the employer

employees who must be paid overtime

42. Sally's department was scheduled to work from 8:00 a.m. until 5:00 p.m. It was announced to all employees that a severe winter storm was expected to reach the city between 4:00 p.m. and 5:00 p.m. Employees of Sally's department asked if they, like most other departments, would be allowed to leave work at 3:00 p.m. to avoid being caught in the storm. Sally was sympathetic, but after much discussion denied the request, stating that the policy was clear that employees were to remain on duty until 5:00 p.m.

Which of the following management styles is Sally demonstrating?

Diplomatic

Bureaucratic

Autocratic

Participative

43. An employer is allowed under deferral law to pay overtime for all hours worked over 80 in a biweekly period.

In what type of industry is this employer likely to be engaged?

Manufacturing

Health care

State or local law enforcement

Retail

44. In a leasing arrangement, which of the following is not assumed by the leasing company?

Payment of employees

Product research

Hiring of employees

Termination of employees

45. Which of the following is important when planning a problem-solving meeting?

Determine the detailed solution you expect to hear from the participants

Begin with an overview of good time management

Prepare an agenda and distribute prior to the meeting

Invite the participants who will agree with your position

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

The employer funds the workers' compensation payments

The state pays the workers' compensation payments

The wages will continue as if the employee is still working

The individual employee is responsible for his own insurance

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

Federal income tax withholding only

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

None

Social Security and Medicare only

48. Which of the following sets of data should be maintained on the payroll master file?

Primary physician's name, and phone number

Name, address, occupation

Next of kin relationship

Children's names and birth dates

49. Brenda receives a prize as a winner of a sales contest. The prize, which is paid from her sales manager's petty cash account, is $25.

Which of the following best represents the impact on her taxable wages?

The prize is a de minims gift and excluded from taxable wages

The prize represents a "gift of detached generosity" and is excluded from taxable income

The prize represents a non-accountable business expense reimbursement and is subject to FIT, FITW, FICA, and FUTA

The prize is subject to FIT, FITW, FICA, and FUTA

50. 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?

10.0 hours

5.5 hours

2.5 hours

7.5 hours

Page 6 of 7

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

None

Federal income tax, Social Security, and Medicare

Social Security, Medicare and FUTA

Federal income tax

52. The annual "bright-line" salary test to meet the definition of exempt under the FLSA is:

$90,000

$100,000

$50,000

$45,500

53. One of the key concepts in total quality management is:

Management by "walking around"

Employees are willing to accept responsibility

Focus on customer satisfaction

Frequent inspection of every phase of a production cycle

54. Form 5500 reporting would be required for which of the following stock plans?

ISO (incentive stock option)

ESOP (employee stock ownership plan)

Restricted stock

NSO (no incentive stock option)

55. Which of the following is a technique for positive motivation?

Rewarding team members for their collective successes

Acknowledging a team member is failing at the regular team meeting

Posting defects and the perpetrator's name as an example to others

Terminating a team member at the first delayed deliverable

56. Federal tax withheld from a distribution of $50,000 from a qualified retirement plan paid directly to a retiree age 65 is:

$14,000

$10, 000

$15,500

57. Procedures governing employers' payment of wages by direct deposit are governed by:

SSA

INS

IRS

NACHA

58. Who of the following most likely is an independent contractor?

A repairman who is called periodically to perform maintenance on the PC's of a dental office.

A person normally employed in the mail room who comes in after hours to clean the offices.

A commissioned salesman who works from his home.

A retiree called back to work on a temporary basis

59. Which form is used to request an employer identification number?

SS-5

SS-4

I-9

SS-8

60. Techniques for conducting periodic physical payouts:

vary by wage class and compensation level

are the same for all employees

vary for some employees such as telecommuters

vary by whether the employee is paid by check or direct deposit

Page 7 of 7

61. Under FLSA, how many hours must be paid at the overtime rate of pay for the following biweekly period assuming the employer is a hospital qualified under the special provisions of the FLSA?

62. An employee is terminated with 3 workdays remaining in a month. The employee earned an annual salary of $24,000 and was paid semimonthly.

What is the regular compensation due this employee for the final pay period?

$800.00

$869.57

$782.61

$723.07

63. Which of the following would NOT be correct in the treatment of deceased workers' wages, assuming the wages are paid in the year after the workers' death?

Report payment in box1 of Form W-2

Payment is exempt from FITW

Report payment in box 3 of Form 1099

Payment is exempt form FICA and FITW