10 exam-style questions with answers and explanations, straight from our 1,100-question bank. Tap an answer to check yourself. When you're ready, take the scored version in the free practice test.
The CPP exam has 200 questions and runs 4 hours.
As of January 1, 2026, the standard salary level required for an employee to qualify as exempt under the FLSA Executive, Administrative, or Professional (EAP) exemption is:
Correct answer: A - $684 per week ($35,568 annually)
A nonexempt employee earns $20.00 per hour and works 45 hours during a workweek. The employee also receives a $90.00 nondiscretionary attendance bonus for that week. Calculate the employee's total gross pay for the workweek under the FLSA.
Correct answer: C - $1,045.00
An employee earns $1,000.00 in gross weekly wages with the following deductions: federal income tax withholding $100.00, FICA $76.50, voluntary §401(k) traditional contribution $50.00, and §125 health insurance premium $40.00. The employer receives a creditor garnishment order. Under the federal Consumer Credit Protection Act (CCPA), what is the MAXIMUM weekly amount that may be withheld for the creditor garnishment?
Correct answer: B - $205.88
Disposable earnings exclude only legally required deductions, not voluntary deductions.
A 45-year-old employee receives $150,000 of employer-provided group-term life insurance coverage for the entire calendar year and makes no after-tax contributions toward the premium. Using IRS Uniform Premium Table I (rate of $0.15 per $1,000 of coverage per month for ages 45-49), what amount must the employer include in the employee's wages as imputed income for the year?
Correct answer: C - $180.00
Under IRC §6672, the Trust Fund Recovery Penalty (TFRP) is MOST likely to be assessed against:
Correct answer: B - A bookkeeper with check-signing authority who, knowing payroll taxes were unpaid, chose to pay vendors first
TFRP requires both a 'responsible person' (status, duty, authority over funds) AND willfulness (knowing preference of other creditors over the IRS).
An employee elects $5,000 of adoption assistance through her employer's IRC §125 cafeteria plan and Section 137 adoption assistance program. For employment tax purposes, this election is:
Correct answer: B - Exempt from FITW only; FICA and FUTA still apply
Adoption assistance is excludable from gross income (FITW) within annual limits but remains subject to FICA and FUTA.
A payroll department wants to gather initial information about available payroll software vendors and their general capabilities BEFORE committing to a formal vendor selection process. The MOST appropriate document to issue is a:
Correct answer: B - Request for Information (RFI)
RFI is used for early-stage market research; RFP follows with detailed requirements; RFQ focuses on pricing for well-defined specifications.
In an effective payroll internal control structure, which of the following represents the MOST significant segregation of duties violation?
Correct answer: C - The same person updates pay rates and processes the payroll calculation, with no independent review
When recording the employer's share of FUTA tax for a pay period, the journal entry should include a:
Correct answer: B - Debit to Payroll Tax Expense and credit to FUTA Payable
Employer payroll taxes (FUTA, employer FICA, SUTA) are recorded as Payroll Tax Expense, separate from Wage Expense (which represents employee gross wages). Liabilities increase with credits.
On Form W-2, the cost of employer-sponsored health coverage reported in Box 12 with Code DD is:
Correct answer: C - Informational only and not taxable to the employee
The full bank has 1,090 more CPP questions with explanations.
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