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APA CPP-Remote Certified Payroll Professional Exam Practice Test

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Total 249 questions

Certified Payroll Professional Questions and Answers

Question 1

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.

Question 2

Which of the following would not be included in the Needs Analysis stage of a system evaluation?

Options:

A.

Review of the current system

B.

Creating a current cost model

C.

Defining the company's technical direction

D.

System testing

Question 3

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 4

Beth, who works for Nugget Productions, is enrolled in the company's cafeteria plan. Beth adopts a child in august, and requests a change in her election under the cafeteria plan. What is the action that may be taken?

Options:

A.

The employer will increase Beth's deduction retroactively to the child's date of birth

B.

There can be no change to Beth's deduction until the first quarter

C.

Beth may change her election due to the change in family status

D.

Nugget Products will suspend Beth's deduction until the first quarter

Question 5

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

Options:

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

Question 6

A network is:

Options:

A.

A system in which computers and terminals are linked together

B.

Terminals, hard drives, and printers

C.

Software that provides for the creation of edit files

D.

A picture of the flow of input through programs

Question 7

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 8

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 9

Certain company records must be retained for four years to comply with regulations of which of the following agencies?

Options:

A.

U.S. Citizenship and Immigration Service

B.

Internal Revenue Service

C.

Wage and Hour Division, Department of Labor

D.

Social Security Administration

Question 10

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

Options:

A.

Originating bank for direct deposit

B.

401(k) administrator

C.

External audit firm

D.

Payer of push money

Question 11

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 12

Which of the following is one of the purposes of a job description?

Options:

A.

Defining the company policy on paying overtime

B.

Describing benefits for which the incumbent is eligible

C.

Setting expectations for work to be performed

D.

Outlining the company's position on job cost accounting

Question 13

A plan to ensure business can continue in the event of a flood is called a:

Options:

A.

Disaster recovery plan

B.

Group term life plan

C.

Implementation plan

D.

Strategic business plan

Question 14

Under FLSA, a work week is defined as:

Options:

A.

Sunday through Saturday

B.

a minimum of a 40-hour/5-day time frame

C.

any 7 consecutive 24-hour periods

D.

stated in a collective bargaining agreement

Question 15

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

Options:

A.

Paradigm

B.

Cognizance

C.

Presumption

D.

Hypothesis

Question 16

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

Options:

A.

SSA

B.

INS

C.

IRS

D.

NACHA

Question 17

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

Options:

A.

$380.64

B.

$404.50

C.

$405.64

D.

$377.00

Question 18

An example of a policy is:

Options:

A.

Employees receive paid sick leave after the second day of absence.

B.

Time cards are filed by cost center in the records room

C.

the PC's of the payroll employees are connected to the same printer

D.

Payroll receives changes of status documents from human resources after data entry has occurred

Question 19

Which of the following is not likely to be included in payroll documentation?

Options:

A.

Auditors' Questionnaire

B.

Proofing and Balancing Payroll

C.

Tax Set Up

D.

Correcting Errors

Question 20

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 21

The KEY advantage of using an automated time and attendance system is that it:

Options:

A.

interfaces with the payroll system

B.

reduces errors

C.

frees supervisors from having to review hours

D.

identifies phantom employees

Question 22

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

Question # 22

Represents 8 hours of sick pay leave:

Options:

A.

10

B.

16

C.

2

D.

0

Question 23

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

Options:

A.

Primary physician's name, and phone number

B.

Name, address, occupation

C.

Next of kin relationship

D.

Children's names and birth dates

Question 24

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 25

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

Question 26

Question # 26

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 27

Another term for service bureaus is:

Options:

A.

Preprocessor

B.

Microprocessor

C.

Business process outsourcer

D.

Prototype

Question 28

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

Question # 28

Options:

A.

8

B.

0

C.

20

D.

10

Question 29

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 30

A cross-functional work team is an important element of:

Options:

A.

Benchmarking

B.

Management by objective

C.

Business process reengineering

D.

Claim of right

Question 31

A procedure to have a time record signed by an employee indicates:

Options:

A.

authorization for payment

B.

hours cannot be challenged

C.

confirmation of total hours

D.

time spent at the establishment

Question 32

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

Question 33

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 34

Which of the following is not delegated to others?

Options:

A.

Ability

B.

Accountability

C.

Authority

D.

Responsibility

Question 35

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

Options:

A.

2

B.

5

C.

3

D.

4

Question 36

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 37

Technology that allows multiple PC's in different geographical areas to access a single device, such as a check printer is:

Options:

A.

Transaction processing

B.

Surge protection

C.

Wide area network

D.

Regression testing

Page: 1 / 25
Total 249 questions