Practice Test GeeksCPP - Certified Payroll Professional Practice Test
← All CPP Flashcard Decks

Payroll Tax Compliance 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 Payroll Tax Compliance flashcards as text

  1. A new employee fails to submit a Form W-4. What withholding status must the employer use?

    Answer: Single with no adjustments (highest withholding)

    Per IRS rules, if an employee does not submit a W-4, the employer must withhold at the single rate with no adjustments.

  2. Which of the following correctly describes the trust fund recovery penalty (TFRP)?

    Answer: It holds responsible persons personally liable for unpaid employee withholding taxes

    The TFRP allows the IRS to hold any 'responsible person' personally liable for 100% of unpaid trust fund taxes (withheld income and employee FICA).

  3. State unemployment insurance (SUTA) taxes are generally paid by:

    Answer: Employers only

    In most states, SUTA is an employer-only tax; employees are not assessed state unemployment insurance contributions.

  4. What is the IRS de minimis rule as it applies to supplemental wage withholding?

    Answer: Employers who paid less than $1 million in supplemental wages in the prior year withhold at 22%

    The flat supplemental wage withholding rate of 22% applies when the employer paid the employee less than $1 million in supplemental wages during the calendar year.

  5. Which form does an employer use to make federal tax deposits electronically through the Electronic Federal Tax Payment System (EFTPS)?

    Answer: No paper form — payments are made electronically via EFTPS

    Since 2011, all federal tax deposits must be made electronically through EFTPS; paper Federal Tax Deposit coupons (Form 8109) are no longer accepted.

  6. An employer discovered it over-withheld federal income tax from an employee. What is the correct procedure?

    Answer: Repay the employee and reduce the next deposit by the same amount

    Employers may repay the employee the excess withholding and then reduce their next federal tax deposit by that same amount per IRS correction rules.

  7. For Form 941 semi-weekly depositors, payroll paid on Wednesday through Friday must be deposited by:

    Answer: The following Wednesday

    Under the semi-weekly deposit rule, taxes on wages paid Wednesday–Friday are due by the following Wednesday.