CPP for 2024/2025 Exam
Administrative EE's primary duties? - *answers *An administrative exempt employee's
primary duties consist of performing nonmanual or office work directly related to the
management of business operations of the employer or customers.
Nondiscretionary bonus - *answers *Nondiscretionary bonus -Nondiscretionary bonus
is a contractual or agreed-upon bonus or incentive. Nondiscretionary bonuses paid to
nonexempt EE's ARE included in the regular rate of pay in the week earned
Workweek - *answers *Any fixed, recurring period of 168 consecutive hours (7 days
times 24 hours = 168 hours).
What is an IRS lock in letter? - *answers *IRS lock in letterIRS letter tells an ER how to
with hold FIT form an EE no mater what was submitted on W-4 Form
When must IRS lock in letter be put in? - *answers *IRS lock in letter time45-60 days is
when it must be implemented and usually has the IRS lock in letter time45-60 days is
when it must be implemented and usually has the date in the letter date in the letter
FLSA highly compensated employee: - *answers *FLSA highly compensated
employee-AN EXEMPT HIGHLY COMPENSATED EMPLOYEE UNDER THE FLSA IS
AN EMPLOYEE WHO MEETS ONE OF THE DUTIES TESTS FOR EXECUTIVE,
ADMINISTRATIVE OR PROFESSIONAL EMPLOYEES AND HAS ANNUAL
COMPENSATION OF $107,432FLSA
Four types of exempt employees: APES - *answers *THE FOUR WHITE COLLAR
TYPES OF EXEMPT EMPLOYEES ARE ADMINISTRATIVE, EXECUTIVE,
PROFESSIONAL, AND OUTSIDE SALES.
Professional EE's primary duties- - *answers *An exempt professional employee is
either a learned or creative professional. Learned professionals work requires advanced
knowledge. Creative professionals work involves invention or talent.
What amount can tipped ee's be paid? - *answers *Tipped EE's may be paid NO LESS
than $2.13 per hour.
When must a W4 be completed? - *answers *New hires or FIT will be single and no
other adjustments. Others when their tax liabilities increase.
Executive EE's primary duties? - *answers *The management of the business, direction
2 or more full-time ee's, the authority to recommend hiring and firing.
What is the W4-S form? - *answers *Its for Sick pay FIT with holding, allows EE's the
ability to request income tax with holding from third-party sick pay.
If no W4-S form is received, how is FIT handled? - *answers *No federal income tax
with be withheld.
,CPP for 2024/2025 Exam
What is the W4-P? - *answers *Withholding for Pension or annuity payments. If not
received then with hold as single no other adjustments.
When is an amended W4 Implemented? - *answers *When EE submits an amended
W4 - must be implemented with the first payroll no later than 30 days after form is
submitted.
How can W4 be made invalid? - *answers *When there are any alterations, additions or
deletions to the form. Claiming a flat dollar or percentage. Verbally
What does exempt W4 form mean? - *answers *EE submits an exempt W4, the EE will
have no FIT with held for remainder of year. The form expires on 2/15 of the year after it
was submitted.
What is a W4? - *answers *Employees withholding certificate for federal income tax.
What is the minimum weekly salary Exempt Employees? - *answers *FLSA - White
Collar Exemptions rules, must be paid a minimum salary of $684 per week. Teachers,
lawyers and attorneys are not required to be paid a salary.
What is the reasonable basis test? - *answers *Reasonable basis test allows a worker
classified as an employee under the common law test to be treated as an independent
contractor.
When are meal periods time worked? - *answers *A meal period that is not at least 30
minutes of uninterrupted time is time worked under the FLSA.
Engaged to be waiting - *answers *Time worked because the employer requires the
employee to wait to begin work
IRS misclassification penalties: #2 - *answers *THE EMPLOYER IS LIABLE FOR
100% OF FIT AND 100% OF SOCIAL SECURITY AND MEDICARE (BOTH
EMPLOYEE AND EMPLOYER SHARE) WHEN A WORKER IS INTENTIONALLY
MISCLASSIFIED AS AN INDEPENDENT CONTRACTOR.
Federal minimum wage - *answers *$7.25
Who uses economic realities factors? - *answers *THE DOL USES THE ECONOMIC
REALITIES FACTORS TO DETERMINE IF A WORKER IS AN EMPLOYEE OR AN
INDEPENDENT CONTRACTOR UNDER THE "TO SUFFER OR PERMIT TO WORK"
CONCEPT.
E-Verify - *answers *Internet-based verification system that allows employers to verify
new hire identity and eligibility to work in the US. Government contractors and ERs in
some states are required to use it.
, CPP for 2024/2025 Exam
Form I-9 - *answers *Employment Eligibility Verification
Two parts of I9? - *answers *Part 1 - filed by employee and Part 2 employers fill out
documents. A=proves identity and authorization. B= Identity only, C=Authorization
How long to keep I9 form? - *answers *For at least 3 years from the date of hire or 1
year from date of termination, whichever is later. - Practice this one!
When to fill out I9? - *answers *No later than the day they begin work. The ER portion
with in 3 days of Hire.
What is the 8/80 rule? - *answers *THE FLSA 8/80 RULE IS A WORKWEEK
EXCEPTION FOR HOSPITALS AND NURSING HOMES. EMPLOYERS USING THIS
RULE PAY OVERTIME FOR WORK OVER 8 HOURS A DAY OR 80 HOURS IN A
TWO WEEK PERIOD.
Traits of an independent contractor - *answers *SETS OWN HOURS; DETERMINES
OWN SEQUENCE OF WORK; WORKS FOR MULTIPLE ORGANIZATIONS; SELF-
EMPLOYED; WORKS BY THE JOB; EMPLOYS ASSISTANTS.
Who is a statutory NONEmployee? (REDS) - *answers *Real estate agents, Direct
Sales
Who is a statutory Employee? (DISH) - *answers *Agent-driver or commission driver,
full time insurance salesperson, homeworker, or a traveling or city salesperson.
How are statutory ee's treated for tax? - *answers *FICA, FUTA - NO FIT -
How are NON statutory ee's treated for tax? - *answers *No tax with holding all 1099's
Under common law, what tare the 3 types of control? - *answers
*Behavioral/Financial/Type of relationship
What is the amount for 1099? - *answers *600
SSNVS - *answers *SOCIAL SECURITY NUMBER VERIFICATION SERVICE IS
SSA'S SYSTEM THAT ALLOWS EMPLOYERS TO VERIFY IF AN EMPLOYEE'S
NAME AND SSN MATCH SSA'S RECORDS.
Traits of an employee? - *answers *Has taxes with held from wages, reimbursed for
expenses, when, where, and how to work
Exempt employees are determined by? - *answers *THE EMPLOYEE'S PRIMARY
JOB DUTIES AND WEEKLY SALARY.
Administrative EE's primary duties? - *answers *An administrative exempt employee's
primary duties consist of performing nonmanual or office work directly related to the
management of business operations of the employer or customers.
Nondiscretionary bonus - *answers *Nondiscretionary bonus -Nondiscretionary bonus
is a contractual or agreed-upon bonus or incentive. Nondiscretionary bonuses paid to
nonexempt EE's ARE included in the regular rate of pay in the week earned
Workweek - *answers *Any fixed, recurring period of 168 consecutive hours (7 days
times 24 hours = 168 hours).
What is an IRS lock in letter? - *answers *IRS lock in letterIRS letter tells an ER how to
with hold FIT form an EE no mater what was submitted on W-4 Form
When must IRS lock in letter be put in? - *answers *IRS lock in letter time45-60 days is
when it must be implemented and usually has the IRS lock in letter time45-60 days is
when it must be implemented and usually has the date in the letter date in the letter
FLSA highly compensated employee: - *answers *FLSA highly compensated
employee-AN EXEMPT HIGHLY COMPENSATED EMPLOYEE UNDER THE FLSA IS
AN EMPLOYEE WHO MEETS ONE OF THE DUTIES TESTS FOR EXECUTIVE,
ADMINISTRATIVE OR PROFESSIONAL EMPLOYEES AND HAS ANNUAL
COMPENSATION OF $107,432FLSA
Four types of exempt employees: APES - *answers *THE FOUR WHITE COLLAR
TYPES OF EXEMPT EMPLOYEES ARE ADMINISTRATIVE, EXECUTIVE,
PROFESSIONAL, AND OUTSIDE SALES.
Professional EE's primary duties- - *answers *An exempt professional employee is
either a learned or creative professional. Learned professionals work requires advanced
knowledge. Creative professionals work involves invention or talent.
What amount can tipped ee's be paid? - *answers *Tipped EE's may be paid NO LESS
than $2.13 per hour.
When must a W4 be completed? - *answers *New hires or FIT will be single and no
other adjustments. Others when their tax liabilities increase.
Executive EE's primary duties? - *answers *The management of the business, direction
2 or more full-time ee's, the authority to recommend hiring and firing.
What is the W4-S form? - *answers *Its for Sick pay FIT with holding, allows EE's the
ability to request income tax with holding from third-party sick pay.
If no W4-S form is received, how is FIT handled? - *answers *No federal income tax
with be withheld.
,CPP for 2024/2025 Exam
What is the W4-P? - *answers *Withholding for Pension or annuity payments. If not
received then with hold as single no other adjustments.
When is an amended W4 Implemented? - *answers *When EE submits an amended
W4 - must be implemented with the first payroll no later than 30 days after form is
submitted.
How can W4 be made invalid? - *answers *When there are any alterations, additions or
deletions to the form. Claiming a flat dollar or percentage. Verbally
What does exempt W4 form mean? - *answers *EE submits an exempt W4, the EE will
have no FIT with held for remainder of year. The form expires on 2/15 of the year after it
was submitted.
What is a W4? - *answers *Employees withholding certificate for federal income tax.
What is the minimum weekly salary Exempt Employees? - *answers *FLSA - White
Collar Exemptions rules, must be paid a minimum salary of $684 per week. Teachers,
lawyers and attorneys are not required to be paid a salary.
What is the reasonable basis test? - *answers *Reasonable basis test allows a worker
classified as an employee under the common law test to be treated as an independent
contractor.
When are meal periods time worked? - *answers *A meal period that is not at least 30
minutes of uninterrupted time is time worked under the FLSA.
Engaged to be waiting - *answers *Time worked because the employer requires the
employee to wait to begin work
IRS misclassification penalties: #2 - *answers *THE EMPLOYER IS LIABLE FOR
100% OF FIT AND 100% OF SOCIAL SECURITY AND MEDICARE (BOTH
EMPLOYEE AND EMPLOYER SHARE) WHEN A WORKER IS INTENTIONALLY
MISCLASSIFIED AS AN INDEPENDENT CONTRACTOR.
Federal minimum wage - *answers *$7.25
Who uses economic realities factors? - *answers *THE DOL USES THE ECONOMIC
REALITIES FACTORS TO DETERMINE IF A WORKER IS AN EMPLOYEE OR AN
INDEPENDENT CONTRACTOR UNDER THE "TO SUFFER OR PERMIT TO WORK"
CONCEPT.
E-Verify - *answers *Internet-based verification system that allows employers to verify
new hire identity and eligibility to work in the US. Government contractors and ERs in
some states are required to use it.
, CPP for 2024/2025 Exam
Form I-9 - *answers *Employment Eligibility Verification
Two parts of I9? - *answers *Part 1 - filed by employee and Part 2 employers fill out
documents. A=proves identity and authorization. B= Identity only, C=Authorization
How long to keep I9 form? - *answers *For at least 3 years from the date of hire or 1
year from date of termination, whichever is later. - Practice this one!
When to fill out I9? - *answers *No later than the day they begin work. The ER portion
with in 3 days of Hire.
What is the 8/80 rule? - *answers *THE FLSA 8/80 RULE IS A WORKWEEK
EXCEPTION FOR HOSPITALS AND NURSING HOMES. EMPLOYERS USING THIS
RULE PAY OVERTIME FOR WORK OVER 8 HOURS A DAY OR 80 HOURS IN A
TWO WEEK PERIOD.
Traits of an independent contractor - *answers *SETS OWN HOURS; DETERMINES
OWN SEQUENCE OF WORK; WORKS FOR MULTIPLE ORGANIZATIONS; SELF-
EMPLOYED; WORKS BY THE JOB; EMPLOYS ASSISTANTS.
Who is a statutory NONEmployee? (REDS) - *answers *Real estate agents, Direct
Sales
Who is a statutory Employee? (DISH) - *answers *Agent-driver or commission driver,
full time insurance salesperson, homeworker, or a traveling or city salesperson.
How are statutory ee's treated for tax? - *answers *FICA, FUTA - NO FIT -
How are NON statutory ee's treated for tax? - *answers *No tax with holding all 1099's
Under common law, what tare the 3 types of control? - *answers
*Behavioral/Financial/Type of relationship
What is the amount for 1099? - *answers *600
SSNVS - *answers *SOCIAL SECURITY NUMBER VERIFICATION SERVICE IS
SSA'S SYSTEM THAT ALLOWS EMPLOYERS TO VERIFY IF AN EMPLOYEE'S
NAME AND SSN MATCH SSA'S RECORDS.
Traits of an employee? - *answers *Has taxes with held from wages, reimbursed for
expenses, when, where, and how to work
Exempt employees are determined by? - *answers *THE EMPLOYEE'S PRIMARY
JOB DUTIES AND WEEKLY SALARY.
