1|Page
CPP CERTIFIED PAYROLL PROFESSIONAL APA
MASTER PRACTICE EXAM-WELL REVISED
ASSESSMENT EXAM WITH PERFECTLY ANSWERED
SOLUTIONS 2026
30) Expenses on a job-related move can be considered deductible and
reimbursements for them excluded from income when what is met?
A. New workplace must be at least 50 miles farther from the employee's old
residence than the previous workplace was
B. 12 months immediately following move, must work fulltime for at least 39
weeks in the general location of the new workplace
C. At least 50 miles from old workplace then new
D. Both A and B - correct-answer -D
31) An employee's date of birth is April 15, 1974 What age would be used for
calculating group term life insurance for January 2012?
A. 27
B. 28
C. 37
D. 38 - correct-answer -D
,2|Page
32) An employee is temporarily disabled and is being paid by a third party who is
not an agent To request federal income tax withheld from third-party sick pay,
which of the following form must be completed?
A. Form W-4
B. Form W-4P
C. Form W-4S
D. Form W-5 - correct-answer -C
33) On what form must wages be reported on if an employee dies after receiving a
paycheck but before cashing it and the check is reissued to the employee's
personal representative?
A. Form W-2D
B. Form W-2
C. Form 1099-MISC
D. Form 1099-R - correct-answer -B
34) Wages paid after the year of death are subject to what withholding taxes?
A. Social Security, Medicare, Federal income tax and FUTA
B. Social Security, Medicare and FUTA
C. Social Security, Medicare
D. None - correct-answer -D
,3|Page
35) The IRS approved rate for employer provided fuel for 2018 is?
A. 5 cents per mile
B. 5.5 cents per mile
C. 55.5 cents per mile
D. 58.5 cents per mile - correct-answer -B
36) Which of the following is not a recordkeeping requirement for business use of
company provided vehicles?
A. Trips mileage
B. Trips date
C. Trips usage of car phone
D. Business purpose of the trip - correct-answer -C
37) Wages paid after the year of death are report on which of the following form?
A. Form W-2D
B. Form W-2
C. Form 1099-MISC
D. Form 1099-R - correct-answer -C
, 4|Page
38) The IRS standard business mileage rate for 2018 is?
A. 5.5 cents per mile
B. 51 cents per mile
C. 54.5 cents per mile
D. 58.5 cents per mile - correct-answer -C
43) What is the maximum amount of employer provided group term life insurance
that can be excluded from an employee's income?
A. One times their annual salary
B. $2,000
C. $50,000
D. $100,000 - correct-answer -C
44) Which of the following is a "de minimis" fringe and is excluded from taxable
earnings?
A. $25 gift certificate for Rainbow Foods
B. $25 Target gift certificate
C. $25 company check
D. Gift certificate (e.g. Ham, Turkey) - correct-answer -D
46) Under the IRC, which section regulates cafeteria plans?
CPP CERTIFIED PAYROLL PROFESSIONAL APA
MASTER PRACTICE EXAM-WELL REVISED
ASSESSMENT EXAM WITH PERFECTLY ANSWERED
SOLUTIONS 2026
30) Expenses on a job-related move can be considered deductible and
reimbursements for them excluded from income when what is met?
A. New workplace must be at least 50 miles farther from the employee's old
residence than the previous workplace was
B. 12 months immediately following move, must work fulltime for at least 39
weeks in the general location of the new workplace
C. At least 50 miles from old workplace then new
D. Both A and B - correct-answer -D
31) An employee's date of birth is April 15, 1974 What age would be used for
calculating group term life insurance for January 2012?
A. 27
B. 28
C. 37
D. 38 - correct-answer -D
,2|Page
32) An employee is temporarily disabled and is being paid by a third party who is
not an agent To request federal income tax withheld from third-party sick pay,
which of the following form must be completed?
A. Form W-4
B. Form W-4P
C. Form W-4S
D. Form W-5 - correct-answer -C
33) On what form must wages be reported on if an employee dies after receiving a
paycheck but before cashing it and the check is reissued to the employee's
personal representative?
A. Form W-2D
B. Form W-2
C. Form 1099-MISC
D. Form 1099-R - correct-answer -B
34) Wages paid after the year of death are subject to what withholding taxes?
A. Social Security, Medicare, Federal income tax and FUTA
B. Social Security, Medicare and FUTA
C. Social Security, Medicare
D. None - correct-answer -D
,3|Page
35) The IRS approved rate for employer provided fuel for 2018 is?
A. 5 cents per mile
B. 5.5 cents per mile
C. 55.5 cents per mile
D. 58.5 cents per mile - correct-answer -B
36) Which of the following is not a recordkeeping requirement for business use of
company provided vehicles?
A. Trips mileage
B. Trips date
C. Trips usage of car phone
D. Business purpose of the trip - correct-answer -C
37) Wages paid after the year of death are report on which of the following form?
A. Form W-2D
B. Form W-2
C. Form 1099-MISC
D. Form 1099-R - correct-answer -C
, 4|Page
38) The IRS standard business mileage rate for 2018 is?
A. 5.5 cents per mile
B. 51 cents per mile
C. 54.5 cents per mile
D. 58.5 cents per mile - correct-answer -C
43) What is the maximum amount of employer provided group term life insurance
that can be excluded from an employee's income?
A. One times their annual salary
B. $2,000
C. $50,000
D. $100,000 - correct-answer -C
44) Which of the following is a "de minimis" fringe and is excluded from taxable
earnings?
A. $25 gift certificate for Rainbow Foods
B. $25 Target gift certificate
C. $25 company check
D. Gift certificate (e.g. Ham, Turkey) - correct-answer -D
46) Under the IRC, which section regulates cafeteria plans?
