CPP CERTIFIED PAYROLL PROFESSIONAL APA
MASTER EXAM 2026 PAYROLL COMPLIANCE
AND ADMINISTRATION TEST PAPER QUESTIONS
AND SOLUTIONS GRADED 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
,◉ 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.
When school is in session, no more than 18 hours per week.
No more than 40 hours during a week when school is out.
Between the hours of 7 a.m. And 7 p.m, extended to 9 p.m. Between
June 1 and Labor Day.
◉ 1) Which form is used for Determination of Employee Work Status
for Purposes of Federal Employment Taxes and Income Tax
Withholding?
, A. Form I-9
B. Form SS-4
C. Form SS-5
D. Form SS-8. Answer: D
◉ 2) What amount must an independent contractor be paid for
services rendered before an employer is obligated to give them a
1099-MISC?
A. Once total reaches $600 or more
B. Total payments reach $600 or more for company's fiscal year
C. Total payments reach $600 or more for calendar year
D. Any individual payment makes during calendar year exceeding
$600. Answer: C
◉ 3) Qualified real estate agents and direct sellers are which of the
following?
A. Statutory Employees
B. Statutory Nonemployees
C. Employees
D. Independent Contractors. Answer: B
MASTER EXAM 2026 PAYROLL COMPLIANCE
AND ADMINISTRATION TEST PAPER QUESTIONS
AND SOLUTIONS GRADED 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
,◉ 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.
When school is in session, no more than 18 hours per week.
No more than 40 hours during a week when school is out.
Between the hours of 7 a.m. And 7 p.m, extended to 9 p.m. Between
June 1 and Labor Day.
◉ 1) Which form is used for Determination of Employee Work Status
for Purposes of Federal Employment Taxes and Income Tax
Withholding?
, A. Form I-9
B. Form SS-4
C. Form SS-5
D. Form SS-8. Answer: D
◉ 2) What amount must an independent contractor be paid for
services rendered before an employer is obligated to give them a
1099-MISC?
A. Once total reaches $600 or more
B. Total payments reach $600 or more for company's fiscal year
C. Total payments reach $600 or more for calendar year
D. Any individual payment makes during calendar year exceeding
$600. Answer: C
◉ 3) Qualified real estate agents and direct sellers are which of the
following?
A. Statutory Employees
B. Statutory Nonemployees
C. Employees
D. Independent Contractors. Answer: B
