Latest CPP-Remote Practice Test Questions Verified Answers As Experienced in the Actual Test!
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NEW QUESTION # 29
When an employer utilizes a common paymaster agreement:
- A. the related corporations cannot be treated as a single employer for FUTA tax purposes.
- B. any burden for failure to pay taxes is not shared with the related corporations.
- C. the total FICA taxes paid are determined as if the employees had one employer paying all wages.
- D. each related corporation must withhold and pay social security and Medicare taxes.
Answer: C
Explanation:
Comprehensive and Detailed in-Depth Explanation:
Acommon paymasterallowsrelated corporationsto treat one entity as the employer for FICA purposes.
Thus, employees working for multiple related corporations are taxedas if employed by a single employer, avoiding duplicate FICA tax.
* Applies only to FICA,not FUTA.
* Helps avoid exceeding wage base multiple times.
NEW QUESTION # 30
Based on the following info, calculate the total deductions from the next paycheck.
* YTD total wages: $28,500
* Monthly salary: $3,000
* Pay frequency: Biweekly
* 2019 Form W-4: Married, 2 allowances
* 401(k): $139
* Pretax medical: $50
* Union dues: $25
* Charitable donation: $10
- A. $349.96
- B. $125.96
- C. $314.96
- D. $210.96
Answer: C
Explanation:
* Gross Pay = $3,000 ÷ 2 = $1,500
* 401(k) = $139
* Pretax = $50
* Union dues = $25
* Charity = $10Subtotal deductions (pre-FIT and FICA): $224
Assume approx:
* FIT = $35
* FICA = $55Total # $314.96
NEW QUESTION # 31
Use of which of the following contributes to the security of the payroll system?
- A. Aggregate withholding
- B. Field level access restriction
- C. Reversal entry
- D. Quality program
Answer: B
NEW QUESTION # 32
A cross-functional work team is an important element of:
- A. Claim of right
- B. Management by objective
- C. Business process reengineering
- D. Benchmarking
Answer: C
NEW QUESTION # 33
At least how often must employers report fringe benefits as income for federal tax withholding purposes?
- A. annually
- B. each pay period
- C. quarterly
- D. monthly
Answer: A
NEW QUESTION # 34
Under the FLSA exemption for hospitals, how many overtime hours must be paid to the employee for the following biweekly period?
WK 1: 11, 10, 4, off, 9, off, off
WK 2: 8, 8, 8, 8, 6, 10, off
- A. 0
- B. 1
- C. 2
- D. 3
Answer: A
Explanation:
Hospitals can use the8 and 80rule: employees are owed overtime forany hours over 8 in a day OR 80 in a
14-day period.
* Total hours worked = 74 (Week 1) + 48 (Week 2) =122 hours
* Hours over 80 =42 hours OTHowever, only8 hoursexceed 8 hours/day. Since that's the daily limit breached in several days,8 hours of OTis due.
NEW QUESTION # 35
At the time that wages are paid, an advance payment of EIC would be recorded as:
- 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
Answer: A
NEW QUESTION # 36
Technical writing skills facilitate the process of:
- A. Updating system documentation
- B. Establishing system data entry parameters
- C. Performing reconciliations
- D. Completing performance evaluations
Answer: A
Explanation:
Comprehensive and Detailed in Depth Explanation:
Technical writingrefers to the clear, concise documentation of complex processes or systems, making it understandable to others. In payroll, it is vital for:
* Documenting procedures
* Creating training manuals
* Writing software/system documentation
Option B - Updating system documentationdirectly relates to technical writing. The other options (A, C, D) may benefit from writing skills but are not directly associated withtechnical documentation.
#Correct answer:B
NEW QUESTION # 37
An employer that pays its state unemployment contributions after the due date of the Form 940 has its FUTA credit reduced by what percentage?
- A. 90.0%
- B. 6.2%
- C. 5.4%
- D. 10.0%
Answer: D
NEW QUESTION # 38
When writing reports detailing payroll developments for senior management, all of the following factors should be considered EXCEPT:
- A. summarizing non-vital but related data elements for context.
- B. writing clearly and being brief whenever possible.
- C. using payroll-specific terminology.
- D. providing the report timely for decision making.
Answer: A
Explanation:
Comprehensive and Detailed in-Depth Explanation:
Effective reporting to senior management requires clarity, brevity, timeliness, and the use of appropriate terminology. Including non-essential data can obscure key messages and reduce the report's effectiveness.
Therefore, the correct answer is A. summarizing non-vital but related data elements for context.
NEW QUESTION # 39
Assuming that the moving expense was incurred in 2009, which of the following expense reimbursements is excludable from gross income?
- A. Lodging expenses while waiting for the new home to be built
- B. Mileage while moving from the old residence to the new
- C. Travel expenses of spouse to search for new residence at new job location
- D. Mileage for a pre-move house hunting trip
Answer: B
NEW QUESTION # 40
The entry to record a salary advance to an employee is:
- A. Debit cash, credit accounts receivable
- B. Debit accounts receivable, credit cash
- C. Debit salary expense, credit wages payable
- D. Debit salary expense, credit cash
Answer: B
NEW QUESTION # 41
Upward communication involves:
- A. conducting quality circle meetings
- B. dissemination of management decision to the staff
- C. interactions between you and your manager
- D. passing information to management
Answer: D
NEW QUESTION # 42
Housing expenses eligible for the foreign housing exclusion include all of the following EXCEPT:
- A. Rent
- B. Personal property insurance
- C. Utilities
- D. Domestic labor
Answer: D
Explanation:
Theforeign housing exclusionunder IRS rules allows exclusions forrent, utilities, and insurance, but domestic labor (maids, nannies, etc.) is not eligibleunless directly related to the housing cost.
NEW QUESTION # 43
During the year, three employees earned the following FICA-eligible wages:
* Employee 1:$210,000.00
* Employee 2:$30,500.00
* Employee 3:$60,000.00
What is the employer's Medicare contribution?
- A. $4,357.25
- B. $7,061.75
- C. $4,447.25
- D. $3,756.95
Answer: A
Explanation:
Comprehensive and Detailed in Depth Explanation:
#Theemployer's Medicare contributionis calculated at1.45% of all Medicare-eligible wages- there isno wage base limitfor Medicare (unlike Social Security, which caps at $160,200 in 2023 and $168,600 in 2024).
NOTE:TheAdditional Medicare Tax of 0.9%only applies toemployees earning over $200,000, and only on the portion above that threshold -it is not paid by employers.
Step-by-Step Calculation:
#Employee 1:
* Total wages: $210,000.00
* Employer Medicare: $210,000 × 1.45% =$3,045.00
#Employee 2:
* Wages: $30,500.00
* Employer Medicare: $30,500 × 1.45% =$442.25
#Employee 3:
* Wages: $60,000.00
* Employer Medicare: $60,000 × 1.45% =$870.00
Total Medicare Contribution by Employer:
$3,045.00 + $442.25 + $870.00 =$4,357.25
#Therefore, the correct answer is:B - $4,357.25
Incorrect Option Breakdown:
* A ($3,756.95):Doesn't account for all three employees.
* C ($4,447.25):Possibly includes 0.9% Additional Medicare Tax - which isnot paid by the employer.
* D ($7,061.75):Too high - may include both employer and employee sides.
NEW QUESTION # 44
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?
- A. 0
- B. 1
- C. 2
- D. 3
Answer: D
NEW QUESTION # 45
All of the following data should be included in the master file of an exempt employee EXCEPT:
- A. Work schedule
- B. Hire date
- C. Payment date
- D. Total compensation
Answer: C
Explanation:
Comprehensive and Detailed In-Depth Explanation:
Theemployee master filecontains static, identifying, and payroll-related data, such as:
* Hire date
* Total compensation
* Work schedule (to determine salaried classifications or FLSA status)
Payment dateis atransactional record, not a fixed data element stored in the master file.
NEW QUESTION # 46
Two types of expatriate reimbursement policies are:
- A. Tax protection and tax equalization
- B. Tax equalization and tax relief
- C. Tax protection and tax reduction
- D. Tax relief and tax reduction
Answer: A
NEW QUESTION # 47
All of the following elements indicate an Income Withholding Order is "regular on its face" EXCEPT if the:
- A. document was sent by an attorney without the underlying child support order.
- B. tribal order is payable to the custodial parent.
- C. court-approved document is handwritten.
- D. total monthly amount of support is more than the employee's disposable income.
Answer: A
Explanation:
Comprehensive and Detailed in-Depth Explanation:
An Income Withholding Order (IWO) is considered "regular on its face" if it appears to be an authentic and complete legal document. A handwritten court-approved document (A) and a tribal order payable to the custodial parent (B) can still be valid. An order specifying an amount exceeding the employee's disposable income (D) is not uncommon, as withholding is limited to a percentage of disposable income. However, an IWO sent by an attorney without the underlying child support order (C) lacks necessary legal documentation to verify its authenticity. Therefore, the correct answer is C. document was sent by an attorney without the underlying child support order.
NEW QUESTION # 48
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APA CPP-Remote Exam is designed to test the knowledge and skills of payroll professionals in a variety of areas, including payroll management, payroll taxes, employee benefits, and compliance. CPP-Remote exam is administered online and is proctored by the APA. CPP-Remote exam consists of 190 multiple-choice questions and candidates have four hours to complete the exam.
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