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
What is the correct order for computing an employee's net pay?
Answer: Gross pay → Pre-tax deductions → Tax withholding → Post-tax deductions → Net pay
Net pay is derived by starting with gross pay, subtracting pre-tax deductions, then taxes, then any post-tax deductions.
The optional flat supplemental withholding rate may be applied when:
Answer: Supplemental wages are paid separately from regular wages on a separate check
When supplemental wages are paid on a separate check apart from regular wages, employers may apply the flat 22% federal supplemental withholding rate.
A semi-monthly payroll schedule results in how many pay periods per year?
Answer: 24
Semi-monthly means twice per month, so 2 × 12 months = 24 pay periods per year.
Imputed income is best described as:
Answer: The taxable value of employer-provided non-cash benefits that must be included in gross wages
Imputed income is the fair market value of non-cash benefits that exceeds IRS exclusion limits and must be added to taxable wages.
The FLSA requires overtime to be paid at what minimum rate for hours over 40 in a workweek?
Answer: 1.5 times the regular rate of pay
The FLSA requires overtime pay of at least 1.5 times the employee's regular rate of pay for all hours worked over 40 in a workweek.
For a non-exempt employee earning both hourly wages and a non-discretionary bonus, overtime is correctly calculated by:
Answer: Including the bonus in the regular rate calculation before computing the overtime premium
Non-discretionary bonuses must be included when computing the regular rate of pay, which then determines the correct overtime premium owed.