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CPP Advanced Practice Flashcards

7 cards from real CPP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 CPP Advanced Practice flashcards as text

  1. An employee contributes $23,000 to their 401(k) plan in 2024 and is age 52. What is the maximum additional catch-up contribution they may make?

    Answer: $7,500

    For 2024, employees age 50 or older may make an additional $7,500 catch-up contribution to a 401(k) plan beyond the $23,000 base limit.

  2. Which form must an employer file to correct an error discovered on a previously filed Form 941?

    Answer: Form 941-X

    Form 941-X (Adjusted Employer's Quarterly Federal Tax Return) is used to correct errors on a previously filed Form 941.

  3. Under the FLSA, which of the following employees is properly classified as exempt under the executive exemption?

    Answer: A manager earning $684/week who customarily directs 2 or more employees and has hiring authority

    The executive exemption requires: salary of at least $684/week, primary duty of managing, directing 2+ employees, and authority to hire/fire or significant influence over those decisions.

  4. An employee's garnishment order is for $400 per week. Their disposable earnings are $700. Under federal CCPA rules, what is the maximum that can be garnished?

    Answer: $175

    The CCPA limits garnishment to the lesser of 25% of disposable earnings or the amount exceeding 30 times the federal minimum wage ($7.25 × 30 = $217.50); 25% of $700 = $175.

  5. What is the Social Security wage base for 2024?

    Answer: $168,600

    The Social Security taxable wage base for 2024 is $168,600; earnings above this amount are not subject to the 6.2% Social Security tax.

  6. Which IRS safe harbor allows employers to avoid the trust fund recovery penalty when a payroll deposit error is de minimis?

    Answer: The shortfall must not exceed the greater of $100 or 2% of the required deposit

    The de minimis rule allows a deposit shortfall of up to the greater of $100 or 2% of the required deposit without penalty, provided it is made up by a specific date.

  7. A company acquires another business mid-year and chooses to treat the transaction as a successor employer for payroll tax purposes. What is the primary benefit?

    Answer: Employees' wages from the predecessor count toward FICA and FUTA wage bases for the year

    Successor employer treatment allows the acquiring company to include predecessor wages when calculating FICA and FUTA wage base limits, preventing employees from being taxed twice on amounts already taxed.