CPP Misc

Question 1

What is the worker status of a full time insurance agent who works primarily for one company?

Answer 1

Statutory employee

Question 2

When an employer pays military differential to an employee serving active 30 or more days the amount paid is:

Answer 2

Taxable for FIT only

Question 3

Accrued wages paid in the year of death are:

Answer 3

Reported in boxes 3 and 5 of Form W-2 and in box 3 of Form 1099-MISC

Question 4

Steps of Managing by Objectives

Answer 4

Central goal setting
Development and individual goal setting
Revision of job description 
Matching goals
Freedom implementation 
Establishing check points 
Performance appraisal

Question 5

A general ledger is:

Answer 5

Compromised of multiple subsidiary ledgers

Question 6

A company transmits a direct deposit in error and discovers the mistake before the bank sends the file to the ACH Operator. The company contacts:

Answer 6

Their bank to recall the direct deposit

Question 7

A scanning method that analyzes the shape of characters on a page and converts it into ASCII text is called:

Answer 7

Optical Character Recognition

Question 8

An employer who receives all or most of the property used in a trade or business of another employee is referred to as the:

Answer 8

Successor Employer

Question 9

Nondiscretionary Bonus

Answer 9

Employer offers bonus on a regular basis and an employee has come to expect it. Included in overtime calculations.

Question 10

Discretionary Bonus

Answer 10

Discretionary bonuses are generally payments that an employee does not have reason to expect and are made at the sole discretion of the employer. Not included in overtime calculations.

Question 11

Dependent Group Term Life

Answer 11

If coverage is greater than $2000 the entire amount of coverage is taxable.

Question 12

Annual Lease Value

Answer 12

Personal Miles \ Total Miles Driven = %

Annual Lease Value x % = Answer

Question 13

Cents per Mile Method

Answer 13

0.54 a mile

Employee Pays Fuel

.54 - .055 = .485

Miles x .485

Fuel Rate (Employer pays - must be added to income)

.055 x miles

Question 14

Gross Up

Answer 14

Reaching the SS limit - add the amount of the SS to the total amount

Example: 
$2000 Bonus 
YTD earnings 117,650
117,650-118,500= 850
850x6.2% = 52.70
52.70 +2000 = 2052.70
2052.70 / 73.55%
Only 25% + 1.45% - no state tax in example

Question 15

One employment data element in the master file is

Answer 15

Hourly rate of pay

Question 16

Which authority dictates the information provided on a payroll check stub?

Answer 16

Individual States

Question 17

Employees who receive pay checks sent through the mail are constructively paid when:

Answer 17

When the checks were delivered

Question 18

A report requested that is not a standard report from the system is called:

Answer 18

Ad-hoc report

Question 19

Zero Balance Checking Account

Answer 19

Cash is available for investment until items are presented for payment at the company’s bank

Question 20

Salary Employee owed for a partial pay period

Answer 20

Hours in the year / 8 hours in a day =260

260 x number of days didn’t work - pay period amount = pay period amount

Question 21

If a company has a debit balance in a liability account at the end of an accounting period:

Answer 21

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

Question 22

Form used to request an employer identification number

Answer 22

SS-4

Question 23

Employer-sponsored athletic facilities may be nontaxable fringe benefit if:

Answer 23

Facilities are on the employer’s premises

Question 24

Employer advised by the IRS that an employee’s Form W-4 is invalid:

Answer 24

Employer should withhold on the basis of information provided by the IRS