CPP Module 1

Question 1

Tipped Employee Hourly Rate

Answer 1

$2.13/hr

Question 2

Form W-4 is invalid when?

Answer 2

Alterations, additions, or deletions. Also if the form is not completed, signed, or dated or the employee indicates the information they provided is false.

Question 3

Child Labor Laws for 14 and 15 year olds

Answer 3

3 hours per day and 18 hours per week when school is in session.
8 hours per day and 40 hours per week when school is not in session.

Question 4

Child Labor Laws 16-18

Answer 4

Cannot work in any job declared hazardous

Question 5

Enterprise Coverage Test for FSLA coverage

Answer 5

When all employees of a business are covered

Question 6

Individual Employee Coverage Test for FSLA

Answer 6

Employee is covered if their job is related or closely related to interstate commerce

Question 7

Regular Rate of Pay Excludes

Answer 7

Gifts, reimbursed expenses, paid hours not worked (PTO), stock options, discretionary bonus, and overtime premiums in excess of the required rate.

Question 8

Exempt employees are determined by

Answer 8

Primary job duties and weekly salary

Question 9

Exempt professional employee duties

Answer 9

Either a learned or creative professional. Requires either advanced knowledge or involving invention or talent.

Question 10

FLSA Highly Compensated Employee

Answer 10

Falls under executive, administrative or professional. And has an annual compensation of $107,432

Question 11

What is FMLA Leave

Answer 11

12 weeks of unpaid leave within a 12 month period after 12 months of full time work

Question 12

IRS Penalties for intentional employee misclassification

Answer 12

Employer is liable for 100% of FIT, SS, and Medicare. Employer and Employee liability.

Question 13

Minimum weekly exempt salary

Answer 13

$684.00 per week.
Teachers, lawyers, and attorneys are not required to be paid a minimum salary.

Question 14

Overnight travel is compensated when

Answer 14

the travel coincides within the employees regular working hours. It can be any day of the week

Question 15

The Reasonable Basis Test

Answer 15

Allows employers to treat employees as independent contractors as long as there is a reasonable basis for doing so.
IRS Rulings, past Audits, Legal guidance, etc.

Question 16

What is an Employee?

Answer 16

Has taxes withheld from wages, reimbursed for expenses, employer is in charge of where, when and how work is done, performs services under company’s name.

Question 17

What is an Independent Contractor?

Answer 17

Sets own hours, determines how work is done, can work for multiple organizations, works by job, and can employ assistants

Question 18

Exempt employee types (4)

Answer 18

1. Administrative
2. Executive
3. Professional
4. Outside Sales

Question 19

When do Exempt W-4 forms expire?

Answer 19

February 15 following submission

Question 20

What does FSLA cover? (MR CEO)

Answer 20

M - Minimum Wage R - Record Keeping, C - Child Labor, E - Mandates Equal Pay, O - Overtime

Question 21

What is form SS-8?

Answer 21

Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding. Used to determine a worker’s status with the IRS

Question 21

What is the 8/80 Rule?

Answer 21

A workweek exception used by hospitals and nursing homes. OT is paid for either working over 8 hours per day or 80 hours in a 14 day period - whichever is a higher payout.

Question 21

What is SSNVS?

Answer 21

Social Security Number Verification Service

Question 22

What is Form W-4P used for?

Answer 22

Periodic Pension and Annuity Payments. Allows retirees to request the amount of FIT for pension and anuity payments by specifying dependents and any other adjustments.

Question 23

What is Form W-4S used for?

Answer 23

Sick Pay. Allows employees to request income tax withholding from third party sick pay

Question 24

Non-Discretionary Bonus

Answer 24

A contractual or agreed-upon bonus or incentive. When paid to non-exempt employees they are included in RROP.

Question 25

What is backup withholding?

Answer 25

When a TIN is not provided or an organization is notified by the IRS to withhold, it is a 24% FIT withholding.
The amount is reported annually on Form 945.

Question 26

Federal Minimum Wage

Answer 26

$7.25

Question 27

What is FLSA?

Answer 27

Fair Labor Standard Act. Manages federal wage and hour laws.

Question 28

What is RROP?

Answer 28

Regular Rate of Pay. Used to calculate a nonexempt employee’s overtime premium.
Total regular pay / Total hours worked

Question 29

When must an amended W-4 be processed?

Answer 29

With the first payroll or within 30 days after form is submitted.

Question 30

Statutory Employee (DISH)

Answer 30

D - Agent or Commission Driver, I - Insurance Salesperson, S - Sales Person, H - Homeworker
A worker who is not an employee under Common Law, but are treated as such for tax purposes for Medicare and SS only.

Question 31

Statutory Nonemployee (REDS)

Answer 31

Real Estate agent and Direct Seller
A worker who is not an employee under Common Law, but is treated as one. Earnings are NOT subject to FUTA or FICA

Question 32

What is economic realities factors?

Answer 32

Used by the DOL to determine an employer-employee relationship where the worker is economically dependent on the employer

Question 33

When must an amended W-2 be put into place?

Answer 33

Within 30 days.