CPP Payroll Systems & Processes Flashcards
6 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 6 CPP Payroll Systems & Processes flashcards as text
ACH direct deposit payroll transactions are governed by which set of rules?
Answer: NACHA Operating Rules
All ACH transactions, including payroll direct deposits, must comply with NACHA (National Automated Clearinghouse Association) Operating Rules.
What is the typical processing time for a standard ACH payroll direct deposit?
Answer: 1 to 2 business days
Standard ACH payroll direct deposits settle in 1-2 business days, which is why most payroll departments initiate ACH files 1-2 days before the pay date.
In ACH payroll processing, a prenote is used to:
Answer: Verify that a new bank account is valid by sending a zero-dollar test transaction before live funds
A prenote is a zero-dollar ACH transaction that validates a new employee's bank account routing and account numbers before live payroll funds are sent.
'Positive pay' in the context of payroll is best described as:
Answer: A bank fraud-prevention service where the employer provides an authorized check list and the bank flags exceptions
Positive pay is a bank service where the employer sends a file of authorized checks; the bank compares presented checks against this list and flags any discrepancies.
Failure-to-deposit penalties for federal payroll taxes can reach up to what maximum percentage?
Answer: 15% of the underpaid amount
IRS failure-to-deposit penalties range from 2% to 15% depending on how many days late the deposit is, with the 15% rate applying to deposits still unpaid 10 or more days after IRS notice.
An employer's deposit schedule (monthly vs. semi-weekly) for federal payroll taxes is determined by:
Answer: The employer's total federal payroll tax liability during the lookback period
The IRS assigns monthly or semi-weekly depositor status based on total federal payroll tax liability reported during the lookback period, which is the 12-month period ending June 30 of the prior year.