F CPP (CERTIFIED PAYROLL PROFESSIONAL) EXAM WITH ACTUAL CORRECT DETAILED ANSWERS
2 views 0 purchase
Course
CPP
Institution
CPP
F CPP (CERTIFIED PAYROLL
PROFESSIONAL) EXAM WITH ACTUAL CORRECT DETAILED
ANSWERS F CPP (CERTIFIED PAYROLL
PROFESSIONAL) EXAM WITH ACTUAL CORRECT DETAILED
ANSWERS F CPP (CERTIFIED PAYROLL
PROFESSIONAL) EXAM WITH ACTUAL CORRECT DETAILED
ANSWERS F CPP (CERTIFIED PAYROLL
PROFESSIONAL) ...
CURRENTLY TESTING SOLUTIONS OF CPP (CERTIFIED PAYROLL
PROFESSIONAL) EXAM WITH ACTUAL CORRECT DETAILED
ANSWERS
List the factors used under the Common Law Test in determining whether a business has the right to
control the financial aspects of a workers activities. - ANSWER-1. Behavioral Control- Right to direct and
control the details and means by which the worker will perform the tasks.
A. Level of Instruction
B. Level of Training
2. Financial Control- Dictates the payment
A. Hourly rate- Most likely employee
B. Paid by the project- could be an independent contractor.
C. Who abosorbs most of the costs/takes most risks?
3. Type of Relationship- Written agreements/contracts stating the worker is an independent contractor
does not make it so...
What are the two categories for Statutory Nonemployees? - ANSWER-1. Real Estate Agents
2. Direct Sellers
What are the 4 categories of Statutory Employees? - ANSWER-1. Agent/commission drivers
,2. Full Time Life Insurance Agents
*exempt from FUTA ONLY if all earnings are from commissions
3. Homemakers
*Works away from ERs location
-Assembles items at home
-Stuffs evelopes at home
-Type transcripts at home
4. Traveling/City Salespersons
What is Common Law Test? - ANSWER-Employer Control: The more control, the more likely an
employee.
-Who does it?
-What is done?
-How does it get done?
-When does it get done?
-Who furnishes tools, supplies, work location?
-Who sets salary rate?
What is Reasonable Basis Test? - ANSWER-Even though a worker meets the definition of an employee
under the common law test, an employer may treat a worker as an independent contractor exempt from
federal payroll tax laws if it has a reasonble basis.
List the factors for the Reasonable Basis Test. - ANSWER-1. Court decisions, published IRS rulings, IRS
technical advice or a private letter ruling from the IRS or,
2. A past IRS audit of the employer or,
3. A longstanding, recognized practice in the employers industry that treats workers in similar situations
as independent contractors.
, What is a temporary help agency employee? - ANSWER-Temp workers are hired, screened and trained by
the temp help agency to provide services for clients. They are employees of the temp agency which sets
their wages and has sole right to hire and fire. The agency is alsor responsible for all payroll taxes.
What is a leased employee? - ANSWER-Leased employees are hired, trained, and qualified by a leasing
company which provides workers for a client company. The client pays a fee to the leasing company to
cover the cost of payroll, benefits, etc... Responsibility for payroll taxes depends on the degree of control
exercised by the client over the employees work and which entity has control over the payment of their
wages.
When leasing an employee or using a temp agency, what should you know about the overall company
that you are dealing with to avoid having to pay any withholding or employment taxes? - ANSWER-
Employers should make sure they are dealing with a financially secure and reputable company before
entering into a contract, since the temp agency or leasing company's financial failure could lead to the
client company becoming liable for any withholding or employement taxes that remain unpaid.
What are the three parts of the ABC test? - ANSWER-1. (Absence Control): Free from control via
agreement and in reality.
2. (Business- unusual and/or away): performed outside the usual course of company business or away
from employers facility
3. (Customarily independent contractor): independent trade, occupation or business
What is the ABC test used to determine? - ANSWER-While many states use the Common Law Test to
determine an employee relationship, more than half use the ABC Test. ABC test is used by many states to
determine a worker's employement status under state unemployment insurance laws to see if the
employee is indeed an independent contractor.
What is Form I-9 used for? - ANSWER-It is used to verify that an individual has the legal right to work in
the US. The Immigration Reform and Control Act of 1986 makes it illegal for an employer to hire an
unauthorized worker.
When a client company hires leased employees, who is responsible for withholding and/or paying the
FIT, SS, Med and FUTA taxes? - ANSWER-Although the client company may have the right to hire and fire
the workers, set wage levels and supervise their work, the workers are generally employees of the
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller DrJudy. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $20.49. You're not tied to anything after your purchase.
