CPP for 2024/2025
Exam
1. Administrative EE's primary duties?: 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.
2. Nondiscretionary bonus: 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
3. Workweek: Any fixed, recurring period of 168 consecutive hours (7 days times 24 hours = 168 hours).
4. What is an IRS lock in letter?: 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
5. When must IRS lock in letter be put in?: 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
6. FLSA highly compensated employee:: FLSA highly compensated employ- ee-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 COM- PENSATION OF
$107,432FLSA
7. Four
types of exempt employees: APES: THE FOUR WHITE COLLAR TYPES OF EXEMPT EMPLOYEES
ARE ADMINISTRATIVE, EXECUTIVE, PROFESSION- AL, AND OUTSIDE SALES.
8. Professional EE's primary duties-: An exempt professional employee is either a learned or creative professional.
Learned professionals work requires advanced knowledge. Creative professionals work involves invention or talent.
9. What amount can tipped ee's be paid?: Tipped EE's may be paid NO LESS than $2.13 per hour.
10.When must a W4 be completed?: New hires or FIT will be single and no other adjustments. Others when their tax
liabilities increase.
11.Executive EE's primary duties?: The management of the business, direction 2 or more full-time ee's, the
authority to recommend hiring and firing.
12.What is the W4-S form?: Its for Sick pay FIT with holding, allows EE's the ability to request income tax with
holding from third-party sick pay.
13.If no W4-S form is received, how is FIT handled?: No federal income tax with be withheld.
14.What is the W4-P?: Withholding for Pension or annuity payments. If not received then with hold as single no other
adjustments.
, CPP for 2024/2025
Exam
15.When is an amended W4 Implemented?: When EE submits an amended W4
- must be implemented with the first payroll no later than 30 days after form is submitted.
16.How can W4 be made invalid?: When there are any alterations, additions or deletions to the form. Claiming a
flat dollar or percentage. Verbally
17.What does exempt W4 form mean?: 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.
18.What is a W4?: Employees withholding certificate for federal income tax.
19.What is the minimum weekly salary Exempt Employees?: FLSA - White Col- lar Exemptions rules, must be
paid a minimum salary of $684 per week. Teachers, lawyers and attorneys are not required to be paid a salary.
20.What is the reasonable basis test?: Reasonable basis test allows a worker classified as an employee under the
common law test to be treated as an indepen- dent contractor.
21.When are meal periods time worked?: A meal period that is not at least 30 minutes of uninterrupted time is
time worked under the FLSA.
22.Engaged to be waiting: Time worked because the employer requires the em- ployee to wait to begin work
23.IRS misclassification penalties: #2: 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 MISCLASSI- FIED AS AN INDEPENDENT CONTRACTOR.
24.Federal minimum wage: $7.25
25.Who uses economic realities factors?: 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.
26.E-Verify: 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.
27.Form I-9: Employment Eligibility Verification
28.Two parts of I9?: Part 1 - filed by employee and Part 2 employers fill out documents. A=proves identity and
authorization. B= Identity only, C=Authorization
29.How long to keep I9 form?: For at least 3 years from the date of hire or 1 year from date of termination,
whichever is later. - Practice this one!
30.When to fill out I9?: No later than the day they begin work. The ER portion with in 3 days of Hire.
, CPP for 2024/2025
Exam
31.What is the 8/80 rule?: 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.
32.Traits of an independent contractor: SETS OWN HOURS; DETERMINES OWN SEQUENCE OF WORK;
WORKS FOR MULTIPLE ORGANIZATIONS; SELF-EMPLOYED; WORKS BY THE JOB; EMPLOYS
ASSISTANTS.
33.Who is a statutory NONEmployee? (REDS): Real estate agents, Direct Sales
34.Who is a statutory Employee? (DISH): Agent-driver or commission driver, full time insurance salesperson,
homeworker, or a traveling or city salesperson.
35.How are statutory ee's treated for tax?: FICA, FUTA - NO FIT -
36.How are NON statutory ee's treated for tax?: No tax with holding all 1099's
37.Under common law, what tare the 3 types of control?: Behavioral/Finan- cial/Type of relationship
38.What is the amount for 1099?: 600
39.SSNVS: 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.
40.Traits of an employee?: Has taxes with held from wages, reimbursed for expenses, when, where, and how
to work
41.Exempt employees are determined by?: THE EMPLOYEE'S PRIMARY JOB DUTIES AND WEEKLY
SALARY.
42.Form W9: A federal form which requests the taxpayer identification number or social security number
43.Overnight travel is time worked:: Overnight travel by a nonexempt employee is time worked during periods that
coincide with the employee's regular working hours, on scheduled work days and non-working days.
44.What is regular rate of pay?: The total pay divided by the total number of hours worked. Used to determine OT
rate
45.What is excluded from regular rate of pay? (GMPOP-B): Gifts, MG bonus, PTO, OT premium, premium
pay, discretionary bonus,
46.IRS misclassification penalties:: THE IRS CAN ASSESS PENALTIES OF 1.5% OF WAGES AND 20% OF
THE EMPLOYEE'S SHARE OF SOCIAL SECU- RITY AND MEDICARE TAXES WHEN A WORKER IS
UNINTENTIONALLY MIS- CLASSIFIED AS AN INDEPENDENT CONTRACTOR.
47.Federal Wage and Hour Law: Fair Labor Standards Act
48.Who does the FLSA cover? (MOEC): Min wage, OT, Equal Pay, Child Labor,
49.Who is covered by FLSA?: Employees are covered by the FLSA under either the enterprise coverage test or the
individual employee coverage test.
Exam
1. Administrative EE's primary duties?: 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.
2. Nondiscretionary bonus: 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
3. Workweek: Any fixed, recurring period of 168 consecutive hours (7 days times 24 hours = 168 hours).
4. What is an IRS lock in letter?: 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
5. When must IRS lock in letter be put in?: 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
6. FLSA highly compensated employee:: FLSA highly compensated employ- ee-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 COM- PENSATION OF
$107,432FLSA
7. Four
types of exempt employees: APES: THE FOUR WHITE COLLAR TYPES OF EXEMPT EMPLOYEES
ARE ADMINISTRATIVE, EXECUTIVE, PROFESSION- AL, AND OUTSIDE SALES.
8. Professional EE's primary duties-: An exempt professional employee is either a learned or creative professional.
Learned professionals work requires advanced knowledge. Creative professionals work involves invention or talent.
9. What amount can tipped ee's be paid?: Tipped EE's may be paid NO LESS than $2.13 per hour.
10.When must a W4 be completed?: New hires or FIT will be single and no other adjustments. Others when their tax
liabilities increase.
11.Executive EE's primary duties?: The management of the business, direction 2 or more full-time ee's, the
authority to recommend hiring and firing.
12.What is the W4-S form?: Its for Sick pay FIT with holding, allows EE's the ability to request income tax with
holding from third-party sick pay.
13.If no W4-S form is received, how is FIT handled?: No federal income tax with be withheld.
14.What is the W4-P?: Withholding for Pension or annuity payments. If not received then with hold as single no other
adjustments.
, CPP for 2024/2025
Exam
15.When is an amended W4 Implemented?: When EE submits an amended W4
- must be implemented with the first payroll no later than 30 days after form is submitted.
16.How can W4 be made invalid?: When there are any alterations, additions or deletions to the form. Claiming a
flat dollar or percentage. Verbally
17.What does exempt W4 form mean?: 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.
18.What is a W4?: Employees withholding certificate for federal income tax.
19.What is the minimum weekly salary Exempt Employees?: FLSA - White Col- lar Exemptions rules, must be
paid a minimum salary of $684 per week. Teachers, lawyers and attorneys are not required to be paid a salary.
20.What is the reasonable basis test?: Reasonable basis test allows a worker classified as an employee under the
common law test to be treated as an indepen- dent contractor.
21.When are meal periods time worked?: A meal period that is not at least 30 minutes of uninterrupted time is
time worked under the FLSA.
22.Engaged to be waiting: Time worked because the employer requires the em- ployee to wait to begin work
23.IRS misclassification penalties: #2: 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 MISCLASSI- FIED AS AN INDEPENDENT CONTRACTOR.
24.Federal minimum wage: $7.25
25.Who uses economic realities factors?: 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.
26.E-Verify: 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.
27.Form I-9: Employment Eligibility Verification
28.Two parts of I9?: Part 1 - filed by employee and Part 2 employers fill out documents. A=proves identity and
authorization. B= Identity only, C=Authorization
29.How long to keep I9 form?: For at least 3 years from the date of hire or 1 year from date of termination,
whichever is later. - Practice this one!
30.When to fill out I9?: No later than the day they begin work. The ER portion with in 3 days of Hire.
, CPP for 2024/2025
Exam
31.What is the 8/80 rule?: 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.
32.Traits of an independent contractor: SETS OWN HOURS; DETERMINES OWN SEQUENCE OF WORK;
WORKS FOR MULTIPLE ORGANIZATIONS; SELF-EMPLOYED; WORKS BY THE JOB; EMPLOYS
ASSISTANTS.
33.Who is a statutory NONEmployee? (REDS): Real estate agents, Direct Sales
34.Who is a statutory Employee? (DISH): Agent-driver or commission driver, full time insurance salesperson,
homeworker, or a traveling or city salesperson.
35.How are statutory ee's treated for tax?: FICA, FUTA - NO FIT -
36.How are NON statutory ee's treated for tax?: No tax with holding all 1099's
37.Under common law, what tare the 3 types of control?: Behavioral/Finan- cial/Type of relationship
38.What is the amount for 1099?: 600
39.SSNVS: 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.
40.Traits of an employee?: Has taxes with held from wages, reimbursed for expenses, when, where, and how
to work
41.Exempt employees are determined by?: THE EMPLOYEE'S PRIMARY JOB DUTIES AND WEEKLY
SALARY.
42.Form W9: A federal form which requests the taxpayer identification number or social security number
43.Overnight travel is time worked:: Overnight travel by a nonexempt employee is time worked during periods that
coincide with the employee's regular working hours, on scheduled work days and non-working days.
44.What is regular rate of pay?: The total pay divided by the total number of hours worked. Used to determine OT
rate
45.What is excluded from regular rate of pay? (GMPOP-B): Gifts, MG bonus, PTO, OT premium, premium
pay, discretionary bonus,
46.IRS misclassification penalties:: THE IRS CAN ASSESS PENALTIES OF 1.5% OF WAGES AND 20% OF
THE EMPLOYEE'S SHARE OF SOCIAL SECU- RITY AND MEDICARE TAXES WHEN A WORKER IS
UNINTENTIONALLY MIS- CLASSIFIED AS AN INDEPENDENT CONTRACTOR.
47.Federal Wage and Hour Law: Fair Labor Standards Act
48.Who does the FLSA cover? (MOEC): Min wage, OT, Equal Pay, Child Labor,
49.Who is covered by FLSA?: Employees are covered by the FLSA under either the enterprise coverage test or the
individual employee coverage test.
