CPP-Remote APA Certified Payroll Professional Free Practice Exam Questions (2025 Updated)

Comprehensive and Detailed in Depth Explanation:

Good customer serviceincludes:

Empathy (A)

Prompt communication (B)

Confidence in answers (D)

Option Cis incorrect becausewaiting until a resolution is known delays responsiveness.Best practice is torespond even if only to acknowledge the issue, while continuing to work on resolution.

✅Therefore, correct answer isC

Projectplanningis the initial phase in a system implementation lifecycle. During this phase, the following tasks are performed:

Evaluating costs: Estimating the budget required for the new system.

Defining goals and objectives: Establishing the project’s scope and purpose.

Analyzing available resources: Reviewing available human, technical, and financial resources.

Conducting user trainingoccurs later, during theexecution or implementation phase,not during planning. Training prepares end-users once the system is configured or ready to be used, not when planning is being scoped.

Comprehensive and Detailed in Depth Explanation:

A third-partynot acting as an agenthas specific responsibilities for transferring tax liabilities. They:

Mustwithhold and deposit the employee’s FICA(A✅)

Mustnotify the employerof FICA paid (D✅)

Mustprovide a detailed statement by January 15th(C✅)

However,FIT withholdingis optional fornon-agent third parties, and if the employer is to assume liability, they will handle FIT themselves. Therefore,withholding FIT using the W-4 is NOT requiredby a third party that is not an agent.

✅Correct answer isB

TheIRSenforces worker classification for tax purposes. Misclassifying an employee as a contractor can lead toFICA and tax penalties.

Comprehensive and Detailed In-Depth Explanation:

To initiate a stop payment, banks require identification of theexact payment, including:

Net amount(amount paid)

Check number

Payee (employee name)

This ensures that the correct item is halted and prevents errors.

Hospitals can use the8 and 80rule: employees are owed overtime forany hours over 8 in a day OR 80 in a 14-day period.

Total hours worked = 74 (Week 1) + 48 (Week 2) =122 hours

Hours over 80 =42 hours OTHowever, only8 hoursexceed 8 hours/day. Since that’s the daily limit breached in several days,8 hours of OTis due.

Comprehensive and Detailed In-Depth Explanation:

Gross pay per period: $130,000 ÷ 26 = $5,000.00

401(k) deferral: 10% of $5,000 = $500

Taxable wages= $5,000 - $500 = $4,500

Now using the2019 IRS Percentage Method for Married with 3 allowances:

Each allowance = approx. $159.60 per pay period → 3 × $159.60 = $478.80

$4,500 − $478.80 = $4,021.20 (taxable income for FIT)

Apply IRS tax table (based on 2019 tables; simplified example):

Let’s say the FIT withheld = $482.52 (approximate for this band)

Then add:

FICA: SS ($5,000 × 6.2%) = $310.00

Medicare ($5,000 × 1.45%) = $72.50

Deductions:

$500 (401k)

$482.52 (FITW)

$310.00 + $72.50 = $382.50 (FICA total)

Total deductions≈ $1,365.02

Net pay= $5,000 − $1,365.02 =$3,734.98→ Closest match:B. $3,729.98