CPP CERTIFIED PAYROLL
PROFESSIONAL APA 2026 ACTUAL
QUESTIONS WITH VERIFIED
ANSWERS.
The taxable and tax amounts for ER paid GTL premiums for
coverage over $50,000 are reported on the W-2 as:
A. Excluded from Box 1, included in Boxes 3 and 5, Box 12
coded "C"
B. Included in Boxes 1, 3 and 5, Box 12 Code "C"
C. Included in Boxes 1, 2, 3, and 5, Box 12 coded "G"
D. Excluded from Box 1, included in Boxes 3 and 5, Box 12
coded "G" - correct answer-B. Included in Boxes 1, 3 and 5,
Box 12 Code "C"
The final FUTA payment for the year is due on:
A. 01/15
B. 12/31
C. 01/31
D. 02/15 - correct answer-C. 01/31
,Tip allocations are needed if the total tips reported are less than
what % of ER's gross receipts?
A. 10%
B. 8%
C. 12%
D. 28% - correct answer-B. 8%
An ER that pays contributions to more than one state UI fund
must file:
A. Form 940
B. Form 944
C. Form 941
D. Form 941c - correct answer-A. Form 940
Exempt, hourly paid computer professionals must be paid not
less than how much per hour?
A. $27.63
B. $33.48
C. $4.75
,D. $5.15 - correct answer-A. $27.63
Which of the following plans BEST describes a cafeteria plan
under Section 125 of the IRC?
A. A quantified and accountable expense reimbursement plan
B. A tax-qualified retirement plan which meets special needs
C. A plan which permits EEs to select from two or more
qualified taxable and nontaxable benefits
D. A plan whereby EEs may request that pretax dollars be set
aside in a qualified retirement account until age 59 - correct
answer-C. A plan which permits employees to select from two
or more qualified taxable and nontaxable benefits
ABCco filed Forms 1099-MISC for workers that should have
been classified as EEs. What penalties will be assessed to for
improper worker classification?
A. 40% of FICA and 3.0% of FIT
B. 20% of FICA and 1.5% of FIT
C. 100% of FICA and 100% of FIT
D. 97% abatement - correct answer-B. 20% of FICA and 1.5%
of FIT
, Which statement below defines "Tax Deferred" wages and "Tax
Exempt" wages?
A. "Tax Deferred" means that taxes will be due at some later
period in time. "Tax Exempt" means that taxes will never be
due.
B. "Tax Deferred" means that taxes will never be due. "Tax
Exempt" means that taxes will be due at some later period in
time.
C. "Tax Deferred" and "Tax Exempt" both mean that taxes will
never be due.
D. "Tax Deferred" and "Tax Exempt" both mean that taxes will
be due at some later period in time. - correct answer-A. "Tax
Deferred" means that taxes will be due at some later period in
time. "Tax Exempt" means that taxes will never be due.
An ER must file a Form 940 if:
A. EEs were employed on any day in the current or preceding
calendar year
B. EEs were employed on any day in any 20 weeks in the
current or preceding calendar year
C. EEs were employed on any 20 different days in the current
or preceding calendar year
PROFESSIONAL APA 2026 ACTUAL
QUESTIONS WITH VERIFIED
ANSWERS.
The taxable and tax amounts for ER paid GTL premiums for
coverage over $50,000 are reported on the W-2 as:
A. Excluded from Box 1, included in Boxes 3 and 5, Box 12
coded "C"
B. Included in Boxes 1, 3 and 5, Box 12 Code "C"
C. Included in Boxes 1, 2, 3, and 5, Box 12 coded "G"
D. Excluded from Box 1, included in Boxes 3 and 5, Box 12
coded "G" - correct answer-B. Included in Boxes 1, 3 and 5,
Box 12 Code "C"
The final FUTA payment for the year is due on:
A. 01/15
B. 12/31
C. 01/31
D. 02/15 - correct answer-C. 01/31
,Tip allocations are needed if the total tips reported are less than
what % of ER's gross receipts?
A. 10%
B. 8%
C. 12%
D. 28% - correct answer-B. 8%
An ER that pays contributions to more than one state UI fund
must file:
A. Form 940
B. Form 944
C. Form 941
D. Form 941c - correct answer-A. Form 940
Exempt, hourly paid computer professionals must be paid not
less than how much per hour?
A. $27.63
B. $33.48
C. $4.75
,D. $5.15 - correct answer-A. $27.63
Which of the following plans BEST describes a cafeteria plan
under Section 125 of the IRC?
A. A quantified and accountable expense reimbursement plan
B. A tax-qualified retirement plan which meets special needs
C. A plan which permits EEs to select from two or more
qualified taxable and nontaxable benefits
D. A plan whereby EEs may request that pretax dollars be set
aside in a qualified retirement account until age 59 - correct
answer-C. A plan which permits employees to select from two
or more qualified taxable and nontaxable benefits
ABCco filed Forms 1099-MISC for workers that should have
been classified as EEs. What penalties will be assessed to for
improper worker classification?
A. 40% of FICA and 3.0% of FIT
B. 20% of FICA and 1.5% of FIT
C. 100% of FICA and 100% of FIT
D. 97% abatement - correct answer-B. 20% of FICA and 1.5%
of FIT
, Which statement below defines "Tax Deferred" wages and "Tax
Exempt" wages?
A. "Tax Deferred" means that taxes will be due at some later
period in time. "Tax Exempt" means that taxes will never be
due.
B. "Tax Deferred" means that taxes will never be due. "Tax
Exempt" means that taxes will be due at some later period in
time.
C. "Tax Deferred" and "Tax Exempt" both mean that taxes will
never be due.
D. "Tax Deferred" and "Tax Exempt" both mean that taxes will
be due at some later period in time. - correct answer-A. "Tax
Deferred" means that taxes will be due at some later period in
time. "Tax Exempt" means that taxes will never be due.
An ER must file a Form 940 if:
A. EEs were employed on any day in the current or preceding
calendar year
B. EEs were employed on any day in any 20 weeks in the
current or preceding calendar year
C. EEs were employed on any 20 different days in the current
or preceding calendar year
