CPP CERTIFIED PAYROLL PROFESSIONAL APA
MASTER EXAM 2026 FINAL ASSESSMENT
PAPER PAYROLL STRATEGY AND COMPLIANCE
COMPREHENSIVE QUESTIONS AND ANSWERS
VERIFIED A+
◉ Form W-9. Answer: First, it is used by third parties to collect
identifying information to help file information returns with the IRS.
The form is never actually sent to the IRS, but is maintained by the
person who files the information return for verification purposes.
The information on the Form W-9 and the payment made are
reported on a Form 1099.
The second purpose is to help the payee avoid backup withholding.
The payer must collect withholding taxes on certain reportable
payments for the IRS. However, if the payee certifies on the W-9 they
are not subject to backup withholding they generally receive the full
payment due them from the payer. This is similar to the withholding
exemptions certifications found on Form W-4 for employees.
◉ Form SS-5. Answer: Apply for an original Social Security card
,Apply for a replacement Social Security card
Change or correct information on your Social Security number
record
◉ Form SS-4. Answer: Application for Employer Identification
Number (EIN)
◉ Accounting equation (Balance Sheet). Answer: Assets = Liabilities
+ Capital
Assets - Liabilities = (Shareholders' or Owners' Equity)
◉ Asset (Debit or Credit Normal Balance?). Answer: Debit
◉ Expense (Debit or Credit Normal Balance?). Answer: Debit
◉ Liability (Debit or Credit Normal Balance?). Answer: Credit
◉ Capital (Debit or Credit Normal Balance?). Answer: Credit
◉ Owners Equity (Debit or Credit Normal Balance?). Answer: Credit
◉ Revenue (Debit or Credit Normal Balance?). Answer: Credit
,◉ Supportive Communication. Answer: Supportive communication
is a style of communicating that has a specific set of goals and
techniques. The primary goal of supportive communication is to
resolve conflict or achieve change in a situation while preserving,
even strengthening, the relationship between the communicating
individuals. This style of communication is used in many types of
interpersonal interactions, such as those including a power
differential, as is found between manager and employee, teacher and
student, or parent and child. It is also effective when used between
those with more equal power, such as spouses, business partners
and friends. Learning these techniques can result in more effective
communication.
◉ Standard Payroll System Reports. Answer: Standard reports are
already set up within the payroll system and can be generated as
required. These include reports on payroll audit, new hires,
terminations, compensation changes, benefit costs and vacation. The
payroll system user can define the parameters of the report such as
limiting information to specific dates, departments and categories.
◉ Min Wage with Tips. Answer: The Fair Labor Standards Act
(FLSA) requires payment of at least the federal minimum wage to
covered, nonexempt employees. An employer of a tipped employee
is only required to pay $2.13 an hour in direct wages if that amount
plus the tips received equals at least the federal minimum wage, the
employee retains all tips and the employee customarily and
regularly receives more than $30 a month in tips. If an employee's
, tips combined with the employer's direct wages of at least $2.13 an
hour do not equal the federal minimum hourly wage, the employer
must make up the difference.
Some states have minimum wage laws specific to tipped employees.
When an employee is subject to both the federal and state wage
laws, the employee is entitled to the provisions which provides the
greater benefits.
◉ Escheat laws. Answer: Refer to unclaimed property obligations.
Companies who issue checks-for wages, payroll, employee
commissions, returnable garnishments, deferred compensation,
payroll services or bonuseshave a potential (and probable)
unclaimed property obligation.
◉ Schedule D (Form 941). Answer: to explain certain discrepancies
(caused by acquisitions, statutory mergers, and consolidations)
between Forms W-2, Wage and Tax Statement (Copy A), and Forms
941, Employer's QUARTERLY Federal Tax Return, for the totals of
social security wages, Medicare wages and tips, social security tips,
federal income tax withheld, and advance earned income credit
(EIC) payments
◉ Workweek for 14 and 15-year-olds. Answer: Outside school
hours, and on school days including Fridays, no more than 3 hours.
No more than 8 hours on a non-school day.
MASTER EXAM 2026 FINAL ASSESSMENT
PAPER PAYROLL STRATEGY AND COMPLIANCE
COMPREHENSIVE QUESTIONS AND ANSWERS
VERIFIED A+
◉ Form W-9. Answer: First, it is used by third parties to collect
identifying information to help file information returns with the IRS.
The form is never actually sent to the IRS, but is maintained by the
person who files the information return for verification purposes.
The information on the Form W-9 and the payment made are
reported on a Form 1099.
The second purpose is to help the payee avoid backup withholding.
The payer must collect withholding taxes on certain reportable
payments for the IRS. However, if the payee certifies on the W-9 they
are not subject to backup withholding they generally receive the full
payment due them from the payer. This is similar to the withholding
exemptions certifications found on Form W-4 for employees.
◉ Form SS-5. Answer: Apply for an original Social Security card
,Apply for a replacement Social Security card
Change or correct information on your Social Security number
record
◉ Form SS-4. Answer: Application for Employer Identification
Number (EIN)
◉ Accounting equation (Balance Sheet). Answer: Assets = Liabilities
+ Capital
Assets - Liabilities = (Shareholders' or Owners' Equity)
◉ Asset (Debit or Credit Normal Balance?). Answer: Debit
◉ Expense (Debit or Credit Normal Balance?). Answer: Debit
◉ Liability (Debit or Credit Normal Balance?). Answer: Credit
◉ Capital (Debit or Credit Normal Balance?). Answer: Credit
◉ Owners Equity (Debit or Credit Normal Balance?). Answer: Credit
◉ Revenue (Debit or Credit Normal Balance?). Answer: Credit
,◉ Supportive Communication. Answer: Supportive communication
is a style of communicating that has a specific set of goals and
techniques. The primary goal of supportive communication is to
resolve conflict or achieve change in a situation while preserving,
even strengthening, the relationship between the communicating
individuals. This style of communication is used in many types of
interpersonal interactions, such as those including a power
differential, as is found between manager and employee, teacher and
student, or parent and child. It is also effective when used between
those with more equal power, such as spouses, business partners
and friends. Learning these techniques can result in more effective
communication.
◉ Standard Payroll System Reports. Answer: Standard reports are
already set up within the payroll system and can be generated as
required. These include reports on payroll audit, new hires,
terminations, compensation changes, benefit costs and vacation. The
payroll system user can define the parameters of the report such as
limiting information to specific dates, departments and categories.
◉ Min Wage with Tips. Answer: The Fair Labor Standards Act
(FLSA) requires payment of at least the federal minimum wage to
covered, nonexempt employees. An employer of a tipped employee
is only required to pay $2.13 an hour in direct wages if that amount
plus the tips received equals at least the federal minimum wage, the
employee retains all tips and the employee customarily and
regularly receives more than $30 a month in tips. If an employee's
, tips combined with the employer's direct wages of at least $2.13 an
hour do not equal the federal minimum hourly wage, the employer
must make up the difference.
Some states have minimum wage laws specific to tipped employees.
When an employee is subject to both the federal and state wage
laws, the employee is entitled to the provisions which provides the
greater benefits.
◉ Escheat laws. Answer: Refer to unclaimed property obligations.
Companies who issue checks-for wages, payroll, employee
commissions, returnable garnishments, deferred compensation,
payroll services or bonuseshave a potential (and probable)
unclaimed property obligation.
◉ Schedule D (Form 941). Answer: to explain certain discrepancies
(caused by acquisitions, statutory mergers, and consolidations)
between Forms W-2, Wage and Tax Statement (Copy A), and Forms
941, Employer's QUARTERLY Federal Tax Return, for the totals of
social security wages, Medicare wages and tips, social security tips,
federal income tax withheld, and advance earned income credit
(EIC) payments
◉ Workweek for 14 and 15-year-olds. Answer: Outside school
hours, and on school days including Fridays, no more than 3 hours.
No more than 8 hours on a non-school day.
