California Payroll Conference CPP and FPC Exams

1. California Payroll Conference CPP and FPC Exams Mary Brumm, CPP Mary_brumm@yahoo.com

2. Agenda • Purpose of the Exams • Choosing the correct exam - FPC or CPP • Preparing for the Exam • Testing Information and Test Taking Tips • Resources • Summary

3. Purpose of the Exams • Provide industry standard of knowledge for payroll professionals • Competency measurement for employers • Encourage professional growth and development • Promote the Payroll Profession • Promote Payroll as a strategy partner in the organization

4. Benefits • Career development • Held in high esteem by your company and peers • Expand your knowledge base • Considered a payroll professional an asset to companies • Demonstrates the payroll expertise and professional development. • More companies are requiring FPP or CPP designation • Ability to network with peers and payroll subject matter experts

5. CPP or FPC Exam?

6. CPP – Core Payroll Concepts - 27% • A. Worker Status • B. Fair Labor Standards Act • C. Employment Taxes • D. Employee Benefits • E. Employee / Employer Forms • F. Professional Responsibility • G. Methods and Timing of Pay

7. CPP - Compliance/Research and Resources -21% • A. Escheatment • B. Regulatory - Maintain Compliance and Accuracy of Payroll Processing • C. Reporting • D. Record Retention • E. Penalties • F. Global

8. CPP – Calculation of the Paycheck 20% • A. Compensation / Benefits • B. Involuntary Deductions / Taxes • C. Voluntary Deductions (pre and post tax) • D. Employer Taxes and Contributions • E. Net Pay

9. CPP - Payroll Process & Supporting Systems and Administration - 9% • A. Maintain master file components • B. Concepts and Functionalities • C. Disaster Recovery Plan • D. Selection • E. Implementation / Upgrades • F. Maintenance / Updates • G. Project Management

10. CPP - Payroll Administration and Management - 10% • A. Policies and Procedures (e.g., overtime, benefits, leave) • B. Staffing, Employee Development, and Core Competencies • C. Management Skills and Practices • D. Communication / Customer Service

11. CPP – Audits - 7% • A. Internal Controls • B. Payroll System Controls • C. Accounting System Controls • D. Third Party Controls • E. Audit Policies and Procedures

12. CPP – Accounting • A. Accounting Principles • B. General Ledger Account Classification • C. Payroll Journal Entry • D. Account Reconciliation

13. FPC – Core Payroll Concepts 40% • A. Worker Status • B. Fair Labor Standards Act • C. Employment Taxes • D. Employee Benefits • E. Employee / Employer Forms • F. Professional Responsibility • G. Methods and Timing of Pay

14. FPC – Compliance/Research and Resources - 20% • A. Escheatment • B. Regulatory - Maintain Compliance and Accuracy of Payroll Processing • C. Reporting • D. Record Retention • E. Penalties

15. FPC – Calculation of the Paycheck 22% • A. Compensation/Benefits • B. Involuntary Deductions / Taxes • C. Voluntary Deductions (pre and post tax) • D. Employer Taxes and Contributions • E. Net Pay

16. FPC – Payroll Process and Supporting Systems and Administration - 2% • A. Maintain master file components • B. Concepts and Functionalities • C. Disaster Recovery Plan

17. FPC – Payroll Administration and Management – 7% • A. Policies and Procedures (e.g., overtime, benefits, leave) • B. Management Skills and Practices • C. Communication / Customer Service

18. FPC – Audits - 5% • A. Internal Controls • B. Payroll System Controls • C. Accounting Systems Controls • D. Audit Policies and Procedures

19. FPC – Accounting – 4% • A. Accounting Principles • B. General Ledger Account Classification • C. Payroll Journal Entry • D. Account Reconciliation

20. Steps to Certification • Read and review CPP or FPC Candidate Handbook (determine exam) http://www.americanpayroll.org/certification/ • Set Your goal – Written commitment to yourself • Gather study material and set up a plan of action • Make sure you have allowed enough time at least 6 - 9 months • Register for the exam on APA certification home page

21. APA Training – CPC and FPC Training

22. Use a Variety of Education Material • The Payroll Source or Resource Ready CD • Pay Train • Payroll Practice Fundamentals (FPC) • IRS Employer Tax Guides – 15 and 15B

23. Testing Window • Two Testing Windows – Spring and Fall • APA Payroll 101 and Payroll 201 week long course provides an opportunity to take the exam at the end of the week. • Register for APA's free Preparing for the CPP and FPC Exams Webinar On Demand to help you develop a plan for success when sitting for the certification exams. • The 2016 certification exams will be on Federal laws and regulations as of January 1, 2016 for the period of September 17, 2016 – September 15, 2017

24. Preparation Tips • Set up a Study Plan • Reduce Exam Anxiety (Relax) • Practice Using your calculator • Take Chapter Quizzes in Payroll Source or Payroll Practice Fundamentals (FPC) • Take Practice Exam • Read question carefully • Don’t spend excessive time on one answer • Verify Gross Up questions

25. CPP and FPC Questions

26. The maximum GTL coverage amount that is excluded from an employee’s income is: • $2,000.00 • $15,000.00 • $50,000.00 • $94,200.00

27. Which entry is used to record wages earned but not paid? • Debit accrued wages; credit wages payable • Debit accrued wages; credit wage expense • Debit wages payable; credit accrued wages • Debit wages expense; credit wages payable

28. Copy A of Form W-2 must be filed with the : • IRS • SSA • FLSA • State Department of Revenue

29. Testing Information and Testing Tips

30. Testing Center Rules • Be on time • Bring Pearson VUE conformation number • Two forms of Identification • Dress appropriately to accommodate testing center temperature (Wear layers) • Pearson will provide whiteboard and erasable pen

31. Testing Rules Continued…. • IRS tables and forms are included with the testing software • No questions about the test are allowed • Calculator – Only silent, non printing or solar powered calculators are allowed. Battery operated may be preferred given lighting in testing center • No rest periods are schedule. Testing proctor may allow examinee to leave but no additional time is given

32. Not allowed in Testing Center • Books or notes • Food or drink • Smoking • Personal belonging - purse, back pack, phone, tablet • Pets or Children

33. Exam Tips • Read each question in its entirely and watch for emphasis on Must, Except, Best ,Not • Answer the questions you know immediately. If you don’t know the answer mark the question to go back to. • Don’t spend too much time on a difficult question • No penalty for incorrect answer. Be sure to guess if you don’t know the answer • Double check that you have used the appropriate table

34. CPP and FPC Questions

35. The IRS provides wage-bracket withholding tables for all of the following pay frequencies EXCEPT: • A. Weekly • B. Biweekly • C. Monthly • D. Annual

36. Payroll records are required to be: • In paper form • On microfiche and paper • Hand written • In and readable, retrievable form

37. Summary • Set your Goal and allow enough time • Create a study plan • Find a study partner • Sign up for a local chapter CPC class or look at local colleges • Consider APA Bootcamp classes • Sign up for a exam date • Relax and you can achieve your goal • Believe in yourself • Celebrate

38. Thank you