Payroll-CPP: Certified Payroll Professional

Payroll-CPP: Certified Payroll Professional practice questions, page 5 of 8, with answer review and explanations.

Question 21

An auto repair shop offers its workers a 20% discount on services performed at the shop. What portion of the discount, if any, is included in taxable income?

  1. 0%
  2. 20%
  3. 50%
  4. 100%

Question 22

The operating rules of the ACH network governing direct deposit are developed and maintained by the:

  1. FTC.
  2. RDFI.
  3. ODFI.
  4. NACHA.

Question 23

When reviewing a Certified Professional Employer Organization application, the IRS will NOT look at the Professional Employer Organization's:

  1. criminal background.
  2. number of clients.
  3. tax filing history.
  4. license activity.

Question 24

If a quarterly 941 filer goes out of business on May 31, Forms W-2 are due to employees no later than:

  1. May 31 of the current year.
  2. July 31 of the current year.
  3. December 31 of the current year.
  4. January 31 of the next year.

Question 25

When determining where to send a notice regarding a data breach, all of the following criteria should be considered EXCEPT the:

  1. type of information taken.
  2. nature of the compromise.
  3. physical proximity to the breach location.
  4. potential damage if the information is misused.