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The Equal Pay Act of 1963 requires equal pay for equal work regardless of gender. It is enforced by the EEOC and is an amendment to the FLSA. While the FLSA governs minimum wage and overtime, ERISA regulates benefits, and HIPAA covers health data. CPP candidates must know equal pay compliance requirements, as they affect compensation practices.

Cash gift cards are always taxable to employees as they are equivalent to cash. Qualified reimbursements, employer health premiums, and HSA contributions (within limits) are excluded. CPP candidates must identify taxable vs. nontaxable benefits to prepare accurate W-2 reporting and ensure IRS compliance.

Regular wages are fully subject to FICA (Social Security and Medicare). Employer-paid health premiums, qualified dependent care assistance (up to $5,000), and expense reimbursements within IRS guidelines are excluded. CPP candidates must be able to identify taxable wages correctly to ensure compliance with IRS requirements.

Cash allowances (for meals, housing, or other personal expenses) are always taxable because they are treated the same as wages. Qualified transportation, dependent care assistance up to the IRS threshold, and employer-paid health insurance are excluded from taxable wages. CPP candidates must identify taxable vs. nontaxable fringe benefits for accurate W-2 reporting.

Payroll reconciliation compares payroll registers, bank records, and accounting entries to ensure accuracy and compliance. This process detects errors, prevents fraud, and validates reporting before filing returns. Training, bonuses, and filing are important but not the purpose of reconciliation. CPP candidates must understand reconciliation as a critical control point in payroll operations.