Certified Payroll Professional Practice Exam 2025 – Your All-in-One Guide to Exam Success

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Which taxation method is used for supplemental payments and involves calculating deductions based on annualized wages and pay periods?

Flat rate aggregation

Flat rate aggregation is the correct answer because it is the taxation method used for supplemental payments in payroll. This method involves calculating deductions based on annualized wages and pay periods, ensuring that the appropriate taxes are withheld from these additional payments.

Progressive taxation, bracketed taxation, and exempt taxation are not the correct answers in this context. Progressive taxation refers to a tax system where tax rates increase as income levels rise, bracketed taxation refers to the system where different tax rates apply to different income ranges, and exempt taxation refers to income that is not subject to taxation.

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Progressive taxation

Bracketed taxation

Exempt taxation

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