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CPP-Remote Questions and Answers

Question # 6

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

A.

Payroll master file changes are reviewed by human resources

B.

Supervisors input increases and new hires to the payroll master file

C.

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

D.

Payroll computes cost-of-living increases for employees

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Question # 7

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?

A.

10.0 hours

B.

5.5 hours

C.

2.5 hours

D.

7.5 hours

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Question # 8

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:

A.

Single and 1 allowance

B.

Single and 0 allowances

C.

Married and 0 allowances

D.

Married and 2 allowances

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Question # 9

Which of the following is most likely to be included in expenses on an organization’s financial statement?

A.

Wages payable in subsequent month

B.

Cash

C.

Company-matched Social Security tax paid to IRS

D.

Wages payable in subsequent year

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Question # 10

An environment n which the back office transaction-intensive processes and customer care functions are consolidated is known as:

A.

Shared services

B.

Pre-processing

C.

Open systems

D.

Outsourcing

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Question # 11

The process of balancing multiple time sheets within a specified pay period utilizes a procedure know as:

A.

reconciliation

B.

system documentation

C.

batch totaling

D.

exception reporting

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Question # 12

Under the Immigration Reform and Control Act, employers and employees are required to complete which of the following forms:

A.

W-4

B.

I-9

C.

SS-5

D.

SS-4

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Question # 13

Which of the following employees' wages is likely to be exempt from FICA?

A.

A parent working for a child

B.

A spouse working for a spouse

C.

A statutory employee

D.

A child under age 18 employed by a parent

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Question # 14

Calculate the employee's gross pay under the FLSA based on the following data: Rate of pay per hour: $8.00 Production bonus: $25.00 Shift differential per hour: $$0.25 Total shift hours in workweek: 44

A.

$380.64

B.

$404.50

C.

$405.64

D.

$377.00

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Question # 15

In the context of fringe benefits, the term "discriminatory plan" refers to a plan that disproportionately favors:

A.

An ethnic group

B.

An age group

C.

A sex

D.

The highly paid

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Question # 16

The term used to describe the breaking away from traditional theories and perceptions is:

A.

Paradigm shift

B.

Cognitive deviation

C.

Pygmalion effect

D.

Doctrinaire approach

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Question # 17

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. Employee Lois was a bait and tackle shop clerk until she retired on June 30. Lois returned to the bait and tackle shop to perform clerical duties on August 15 and worked through Labor Day to assist Bass Biting through its busy season. Determine Lois' employment status with Bass Biting

A.

Statutory nonemployee

B.

Independent contractor

C.

Nonstatutory employee

D.

Employee

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Question # 18

The popular term used to describe traditional theories and perceptions is":

A.

Paradigm

B.

Cognizance

C.

Presumption

D.

Hypothesis

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Question # 19

Which of the following supports payroll system security?

A.

New hire reporting

B.

Audit trails

C.

Constructive receipt

D.

Labor law compliance

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Question # 20

Sick pay under a definite plan or system is NOT subject to mandatory federal income tax withholding when paid:

A.

From a disability retirement plan

B.

From an employer's self-insured plan

C.

By an agent of the employer

D.

By a third-party insurance provider

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Question # 21

Which of the following agencies would most likely enforce rules governing the number of days following the close of the payroll period that employees must be paid?

A.

State workers' compensation board

B.

State labor department

C.

Internal Revenue Service

D.

Social Security Administration

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Question # 22

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. Only two employees, George the President, and Earl, a salesperson, receive group-term life insurance. The value of each of their group-term life benefit is $93 per month, and $23 per month after excluding the first $50,000 of coverage. How much is exempt from wages?

A.

$0

B.

$93.00

C.

$186.00

D.

$46.00

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Question # 23

Which of the following represents the best way of addressing an issue of an employee's poor task performance?

A.

Relocating physical work space near the supervisor

B.

Reassignment to another department

C.

Targeting training

D.

Assigning to an autocratic leader

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Question # 24

A service company sends employees overseas on assignments that last no more than 4 months at a time. Which of the following is true with respect to the taxation of those employees?

A.

The are subject to U.S. Taxation on their pay only while in the United States

B.

They qualify for an income tax exemption under the "physical presence test"

C.

They are subject to U.S. taxation on their pay for the time in and out of the country

D.

They qualify for income tax exclusion under the "bona fide residence test"

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Question # 25

The FLSA term "exempt" generally means the employer need NOT:

A.

Withhold federal income tax

B.

Pay overtime

C.

Pay federal income tax

D.

Pay a minimum amount

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Question # 26

Which of the following forms is completed by an individual who is eligible for and wishes to receive advance payment of the earned income credit?

A.

W-4S

B.

W-4

C.

W-5

D.

W-10

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Question # 27

The term Workforce Management refers to:

A.

Third party background check services

B.

Time management

C.

Recruiting services

D.

Management of employee business functions

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Question # 28

Which of the following items determines the disposition of unclaimed wages?

A.

federal law only

B.

federal and state law

C.

no recognized procedures exist

D.

state law only

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Question # 29

A pre notification may be used when an employee:

A.

Has insufficient funds in a checking account

B.

Loses a paycheck

C.

Is relocated

D.

Changes banking institutions

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Question # 30

Which of the following employee's wages is likely to be subject to FUTA?

A.

A parent employed by his or her child

B.

A spouse employed by spouse

C.

A child under age 21 employed by parent

D.

A statutory employee

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Question # 31

How should a meeting conclude?

A.

Summarize and outline next steps

B.

Invite the participants who agree with your position to participate in the next step

C.

Critique each participant's participation prior to closing the meeting

D.

Collect the participants' personal notes for filing

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Question # 32

The primary responsibility of Professional Employer Organizations is:

A.

Determining the client's products and services

B.

Establishing their client's FEIN

C.

Leasing the buildings and fixtures

D.

Co-employment of their client's employees

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Question # 33

An integrated HRIS offers the advantage of:

A.

Decreased requirements for technical improvements

B.

Reduced effort in the maintenance of employee records

C.

Enhanced screen display of employee data

D.

Improved security of confidential payroll

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Question # 34

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

A.

Labor Relations Director

B.

Accounts payable clerk

C.

Payroll specialist

D.

Human resources receptionist

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Question # 35

When making the federal payroll tax deposit, the accounting entry to record an advance payment of EIC would be:

A.

Debit EIC payable, credit cash

B.

Debit cash, credit EIC payable

C.

Debit FIT payable, credit cash

D.

Debit EIC payable, credit FICA payable

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Question # 36

All of the following data elements are required to be maintained in the employee master file EXCEPT:

A.

birth date

B.

marital status

C.

occupation

D.

social security number

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Question # 37

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?

A.

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

B.

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

C.

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

D.

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

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