- (Topic 2)
The lowest priority is given to which of the following time management categories?

1. A. Urgent and important
2. B. Not urgent but important
3. C. Urgent but not important
4. D. Not urgent and not important

Correct Answer: D
TheEisenhower Matrixis a time management framework that categorizes tasks by urgency and importance:
✑ Urgent & Important: Must be done immediately (e.g., payroll processing).
✑ Not Urgent but Important: Planning and strategic tasks (e.g., compliance training).
✑ Urgent but Not Important: Tasks that may be delegated (e.g., responding to non- critical emails).
✑ Not Urgent & Not Important:These tasks have the lowest priorityas they do not contribute significantly to productivity (e.g., unnecessary meetings).
References:
✑ Eisenhower Matrix Time Management Framework
✑ Payroll Management Best Practices (Payroll.org)

- (Topic 1)
Under the CCPA, use the following information to calculate the MAXIMUM child support order deduction allowed for an employee supporting a second family and in arrears.

1. A. $689.00
2. B. $768.90
3. C. $838.80
4. D. $908.70

Correct Answer: B
Comprehensive and Detailed Explanation:Under theConsumer Credit Protection Act (CCPA):
✑ If the employeesupports a second family and is in arrears, themaximum
garnishment limitis55% of disposable earnings.
✑ Calculate Disposable Earnings:
✑ Calculate Maximum Child Support Deduction (55% of disposable earnings): Thus, the correct answer isB. $768.90.
Reference:
U.S. Department of Labor – CCPA Garnishment Rules Payroll.org – Child Support Withholding Guidelines

- (Topic 2)
IRS regulations require employers to take all of the following actions for taxable noncash awards EXCEPT:

1. A. Gross up the value of the award
2. B. Tax the value of the award when received
3. C. Recognize the value of the award as a business expense
4. D. Include the value of the award on Form W-2 in Boxes 1, 3, and 5

Correct Answer: A
✑ Employers are not required to "gross up" (A) taxable awards unless they choose to cover the employee??s tax liability.
✑ The IRS mandates taxation and W-2 reporting (B, C, D).
References:
✑ IRS Publication 15-B

- (Topic 2)
Using the percentage method for automated payroll systems, calculate the federal income tax withholding based on the following information:

1. A. $18.65
2. B. $26.92
3. C. $39.04
4. D. $41.69

Correct Answer: C
✑ Total taxable wages: $384.62 + $76.92 + $38.46 = $500.00
✑ Using IRS percentage method tables, withholding = $39.04 References:
✑ IRS Publication 15-T (Tax Withholding Tables)

- (Topic 1)
Payroll standard operating procedures should be updated no less frequently than:

1. A. Annually
2. B. Quarterly
3. C. When revising workflow
4. D. When management changes

Correct Answer: C
Comprehensive and Detailed Explanation:PayrollStandard Operating Procedures (SOPs)must beregularly updatedto maintain compliance and accuracy.
✑ Best practice is to update SOPs whenever workflows change(Option C).
✑ Option A (Annually)is incorrect becausewaiting a full yearcould lead to outdated procedures.
✑ Option B (Quarterly)is incorrect unless payroll processes are highly dynamic.
✑ Option D (When management changes)is incorrect becauseprocesses may change independently of leadership changes.
Reference:
Payroll.org – Payroll Policies and Procedures Best Practices IRS – Payroll Compliance Guidelines