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APA CPP-Remote Certified Payroll Professional Exam Practice Test

Demo: 37 questions
Total 249 questions

Certified Payroll Professional Questions and Answers

Question 1

In 2009, an on-line payroll system alerts the payroll specialist entering data that an employee has a birth date of 1996 or after. What might this indicate?

Options:

A.

A special Form W-4 is required each year for that employee

B.

The employer may be able to suspend deductions of Social Security and Medicare

C.

Employee may have been hired in violation of child labor laws

D.

Employee is exempt from federal income tax

Question 2

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

Question 3

Upward communication involves:

Options:

A.

passing information to management

B.

dissemination of management decision to the staff

C.

interactions between you and your manager

D.

conducting quality circle meetings

Question 4

A company has a gross payroll of $120,589.36. Federal taxes withheld are $24,117.87; combined social security and Medicare taxes withheld are $6,502.50. What is the company's total tax liability for this pay period?

Options:

A.

$37,122.87

B.

$30.620.37

C.

$42,568.04

D.

$61,240.74

Question 5

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

Options:

A.

Employee's prior employment history

B.

Name and address of benefits provider

C.

Employer's date of incorporation

D.

Deductions made to satisfy an IRS levy

Question 6

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

Options:

A.

writing the internal audit transaction test plan

B.

development company policy

C.

assuring segregation of duties in the department

D.

initiating payroll transactions

Question 7

Another term for service bureaus is:

Options:

A.

Preprocessor

B.

Microprocessor

C.

Business process outsourcer

D.

Prototype

Question 8

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?

Options:

A.

$0

B.

$93.00

C.

$186.00

D.

$46.00

Question 9

Which of the following documents proves both identity and right to work for Form I-9 verification purposes?

Options:

A.

U.S. Passport

B.

Social Security card

C.

Driver's license

D.

Birth Certificate

Question 10

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

Options:

A.

Calculating bonus and severance pay

B.

Entering direct deposit information

C.

Sorting checks and deposit statements for distribution

D.

Crafting policy for employee benefits

Question 11

Nice Guys Inc. has a short-term disability plan, provided by a third-party insurance company, for its factory workers. Employees do not pay for this benefit. Roberta received $400 a month for four months during the six-month coverage period. How did the third-party payer tax Roberta's disability payments?

Options:

A.

No tax was withheld on any payments

B.

Federal Income tax was withheld on $400 in each of the four months

C.

Social Security and Medicare taxes were withheld on the value of the premium paid by the employer

D.

Social Security and Medicare taxes were withheld on $400 in each of the four months.

Question 12

Documenting payroll policies and procedures will provide all of the following results EXCEPT:

Options:

A.

a mechanism for educating payroll partners, suppliers, and customers

B.

assurances of payroll personnel competency and performance

C.

a tool for assessing internal business controls

D.

a vehicle for improving processes

Question 13

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

Question 14

How should a meeting conclude?

Options:

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

Question 15

How should a manager provide negative feedback to an employee?

Options:

A.

Through an email-message

B.

In the privacy of an office or conference room

C.

On a voice-mail

D.

At a department meeting

Question 16

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

Options:

A.

Shared services

B.

Pre-processing

C.

Open systems

D.

Outsourcing

Question 17

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

Options:

A.

An ethnic group

B.

An age group

C.

A sex

D.

The highly paid

Question 18

For an employee earning $10.20 per hour and participating in a 401(k) plan with a deferral per pay period of $50, compute the federal taxable wages based on the following: Biweekly pay period Regular 80 hours 4 hours overtime 3 hours double-time:

Options:

A.

$731.40

B.

$938.40

C.

$898.60

D.

$888.40

Question 19

FLSA coverage does not apply under which of the following conditions?

Options:

A.

Employees are minors under the age of 18

B.

Employees are paid $2.13 per hour

C.

Employer and employees are not engaged in interstate commerce

D.

All employees are part time workers

Question 20

In a relational database, a field is represented as:

Options:

A.

A highlighted area of the monitor

B.

An icon on the graphical user interface

C.

An entry on a row in a table

D.

A command button on the panel or screen

Question 21

Which of the following best represents compliance under Section 404 of Sarbanes Oxley?

Options:

A.

Payroll transactions are reviewed by internal audit

B.

Service provider initiates all pay transactions

C.

Accruals entries are made by the payroll staff

D.

Benefits enrollment data is maintained by authorized personnel

Question 22

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

Options:

A.

$4,980

B.

$ 0

C.

$10,480

D.

$23,582

Question 23

How many hours prior to payday is it recommended that a direct deposit of wages be initiated with the ODFI?

Options:

A.

8 hours

B.

48 hours

C.

24 hours

D.

72 hours

Question 24

Which of the following is not a by-product of documentation?

Options:

A.

Simplified training

B.

Consistency

C.

Reference material

D.

Firewall violation prevention

Question 25

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

Options:

A.

Paradigm shift

B.

Cognitive deviation

C.

Pygmalion effect

D.

Doctrinaire approach

Question 26

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

Options:

A.

W-2

B.

1042-S

C.

5500

D.

W-8BEN

Question 27

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

Question 28

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

Question 29

One of the employees of the Great Company called to report to the payroll department that his payroll check was incorrect. Which of the following is the most appropriate response or action for the payroll department representative who spoke to the caller?

Options:

A.

Explain that due to the intense schedule under which payroll operates, someone will look into the problem before the next regular payday and make an adjustment at that time if one is warranted.

B.

Record the caller's name, employee number and telephone number, his analysis of the payroll check, including the reasons he believes his paycheck is incorrect, and provide a time and date for returning his call with a response to his inquiry.

C.

Acknowledge immediately that a mistake is likely and assure the caller an adjustment will be processed the same day

D.

Record the caller's name and telephone number and promise to call him back as soon as time permits

Question 30

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

Options:

A.

Payroll department members change their passwords each week

B.

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

C.

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

D.

Check stock is maintained under lock and key

Question 31

Employers in non-credit reduction states that pay their state unemployment taxes on time can deduct up to what percentage in calculating their FUTA tax payments?

Options:

A.

0.8%

B.

6.2%

C.

5.4%

D.

4.5%

Question 32

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

Options:

A.

reconciliation

B.

system documentation

C.

batch totaling

D.

exception reporting

Question 33

The FLSA requires which of the following records to be retained for three years?

Options:

A.

Proof of workers' compensation coverage

B.

Document showing employee's job duties

C.

Daily time records

D.

Employee disciplinary notices

Question 34

Employee Jack, a nonexempt employee, must travel by plane from Chicago to Houston to inspect the security system recently, installed at a client's site. Jack is normally scheduled to work from 8:00 a.m. to 5:00 p.m., Monday through Friday. Jack arrives at Chicago O'Hare airport on Sunday at 4:00 p.m. and lands at Houston Intercontinental airport at 6:00 p.m. Jack begins work at 8:00 a.m. on Monday, works through lunch, and returns to the airport for his return flight at 5:00 p.m. He arrives in Chicago at 7:00 p.m. Monday evening. Under FLSA, how many hours of pay are due Jack for Sunday and Monday?

Options:

A.

8

B.

14

C.

10

D.

11

Question 35

What does it mean if, at the end of an accounting period, a company has a debit balance in a liability account?

Options:

A.

The company has not yet paid the third party

B.

The company has withheld too much from the employee

C.

The company has paid to a third party more than was withheld from the employee

D.

The company has under-deposited taxes withheld from employee wages

Question 36

What is the total amount reported in box 10, "Dependent care benefits?"

Options:

A.

$ 0

B.

$10,480

C.

$5,500

D.

$4,980

Question 37

Which of the following forms must the employer receive as authorization to discontinue withholding under a federal tax levy notice?

Options:

A.

668-D

B.

2678

C.

I-9

D.

668-W(c)

Demo: 37 questions
Total 249 questions