Chapter 1: Payroll & Personnel Records
SUTA Tax (State Unemployment Tax
State unemployment Tax paid by employers on employee behalf. -It's the fund pot of money that becomes your unemployment payments if you're laid off from your job. -Employers are required to pay unemployment tax for employee at the state and federal level.
SECA (Self-Employment Contribution Act)
Tax on net earnings of self-employed individual.
FICA Tax (Federal Insurance Contributions Act):
The Act that takes money out of worker's paychecks to pay older Americans their Social Security retirement
Unemployment tax acts
The Acts that associated with FUTA and SUTA FUTA: Tax levied on employers (Federal Unemployment Tax Act—FUTA) that is used to pay state and federal administrative expenses of the unemployment program. SUTA: State unemployment taxes (SUTA) on employers imposed by all states. These taxes are used to pay unemployment benefits.
Federal Insurance Contributions Act
The basic provisions of the act that deal with: • Tax on employees (set percent of their gross wages) and employers for the Federal Old-Age and Survivors' Trust Fund and the Federal Disability Insurance Trust Fund. • Separate tax on employees and employers to finance the Health Insurance Plan—Medicare. • Tax on net earnings of the self-employed individual (Self-Employment Contributions Act—SECA). •Making payments to persons who are entitled to benefits under these social security taxes.
Fair employment laws:
The laws that enforce fair employment practices. Many of these laws deal with discrimination on the basis of age, race, color, religion, gender, or national origin.
FICA Tax (Federal Insurance Contributions Act):
The money that is taken out of worker's paychecks to pay older Americans their Social Security retirement and Medicare (Hospital Insurance) benefits. -paid by both workers and their employers. -Reported on IRS from 940 -It is a mandatory payroll deduction. The rate in 2018 is 7.65%-6.2% for OASDI and 1.45% for HI (HI: Hospital Insurance). -OASDI - Old Age, Survivors and Disability Insurance
False
1. The Fair Labor Standards Act sets the current minimum wage at $7.50 per hour. True or False
True
1. Under the Family and Medical Leave Act, employers can exempt an employee who has not worked for the employer for at least one year and has worked for the company for at least 1,250 in the last year. True or False
c. 12 weeks
1. Under the Family and Medical Leave Act, what is the maximum number of weeks of unpaid leave that a covered employer is required to offer an employee whose spouse is seriously ill? a. 11 b. 10 c. 12 d. 25
(C) Forbids discrimination in hiring
1. Which of the following is not a provision of the Fair Labor Standards Act (FLSA)? (A) Restricts the employment of child labor (B) Sets minimum wage (C) Forbids discrimination in hiring (D) Mandates equal pay for equal work, regardless of gender (E) All are provisions of FLSA
a. Once in 12-month period
10. At a minimum, how often should an administrator furnish a statement of total benefits accrued and accrued benefits that are vested under ERISA (Employee Retirement Income Security Act) a. Once in 12 month period b. Every month c. Once in 9 month period d. Once in 6 month period
False
10. Criminal background checks can be used by employers on all job applicants. True or False
e. All of these choices are correct.
10. which of the following in included in a job description? a. Education requirements and special skills needed b. Job essential functions, including any physical requirements c. Second duties d. Attendance requirements e. All of these choices are correct.
False
11. Employers are now required to photocopy new employees' Form I-9 documents. True or False
True
11. Most employers are faced with two unemployment taxes—federal and state. True or False
True
12. Every state imposes state unemployment taxes on employers in their state. True or False
c. Patient Protection and Affordable Care Act
12. Which of the following Acts gives a tax credit to employers for offering h? Insurance to their Employees: a. Fair Labor Standard Act b. Family and Medical Leave Act c. Patient Protection and Affordable Care Act d. Civil Rights Act e. None of these choices are correct.
True
13. As part of their FMLA, a few states have implemented a paid family leave plan. True or False
False
13. The total of workers' compensation insurance is borne by the employees. True or False
False
14. All State have set their minimum wage to be the same the federal government. True or False
False
14. The FUTA tax paid to the federal government is used to pay benefits to the unemployed workers who qualify for the benefits. True or False
True
15. Employers not subject to Title VII coverage may come within the scope of the Civil Rights Act by reason of a contract or subcontract involving federal funds. True or False
False
15. Under the Affordable Care Act, the insurance provided by the employer only has to meet an affordability test.. True or False
False
16. The information reporting requirements of the Affordable Care Act only involve the filing of each employee's Form W-2. True or False
c. Equal Employment Opportunity Act
16. Title VII of the Civil Rights Act is referred to as the: a. Age Discrimination Act b. Immigration Reform Act c. Equal Employment Opportunity Act d. Wage Hour Act e. Social Security Act
False
17. Each state imposes an income tax on employees that is 2 percent of gross wages True or False
True
17. Once vested, workers have the right to receive a pension at retirement age, even if they no longer work for that company. True or False
False Note: Title VII does not protect an employee from arbitrary treatment or dismissal. As long as the employer applies these policies in a nondiscriminatory manner, Title VII requirements have not been violated.
18. Title VII of the Civil Rights Act protects all employees from arbitrary dismissal. True or False
True
18. Under the Family and Medical Leave Act, employers can exempt the highest paid 10 percent of their workforce from its provisions. True or False
False Note: document submitted by a department head to the Human Resources Department asking for additional or replacement employees. The Requisition for Personnel form notifies the Human Resource Department of the need for additional or replacement employees.
19. The requisition for personnel form is sent to the Payroll Department so that the new employee can be properly added to the payroll. True or False
False
19. Under federal law, new-hire reporting also applies to newly hired independent contractors. True or False
True
2. One of the provisions of coverage of the Civil Rights Act is that the employer must have 15 or more workers. True or False
False
2. The Federal Insurance Contributions Act covers restrictions on the employment of child labor. True or False
d. All of these choices are correct.
2. Under the Civil Rights Act of 1964 and the Age Discrimination in Employment Act, which of the following questions may not be asked by an employer during pre-hire inquiries? a. What is your gender? b. What is your religion? c. What is your race? d. All of these choices are correct.
(C) Age
2. Which of the following bases for discrimination in employment practices is not covered in Title VII of the Civil Rights Act of 1964 as amended? (C) Age (A) Color (B) Religion (C) Age (D) Sex (E) National origin
False
20. Form I-9, Employment Eligibility Verification, is completed only by employees who were born outside the United States. True or False
False Note: The leave may be used all at once, or in separate weeks, days, or hours. However, the leave must be taken within 12 months of the qualifying event. eP1-8c
20. Under FMLA (Family Medical Leave Act), the time off must be used in one uninterrupted of time. True or False.
False
21. The deadline for an employee to complete and sign Section 1 of Form I-9 is one year from the date of hire. True or False
True
22. Under the Family and Medical Leave Act, an employer can substitute an employee's earned paid leave for any part of the 12-week family leave. True or False
True
23. Workers' compensation insurance applies only to work-related injury, illness, or death. True or False
True
24. Pre-hire questions pertaining to religion, gender, national origin, or age are allowed when these factors are bona fide occupational requirements for a job. True or False
True
25. If an investigative consumer report is being used, the applicant must be given a written notice that the information obtained will be used in the employment decision. True or False
False
26. Employers cannot terminate an employee for providing false information on an application form once the employee begins employment. True or False
True
27. The hiring notice is a record sent to the Payroll Department so that the new employee can be added to the payroll. True or False
False
28. The payroll register is used by employers in preparing Form W-2, the wage and tax statement sent to each employee at year-end. ....answer is Employees' Earning Record. True or False
True
29. The payroll register is used to provide the information needed to record the payroll entries made in the journal on each payday. True or False
False
3. The Affordable Care Act does not make a distinction between large and small employers. True or False
False
3. The Federal Income Tax Withholding Law requires that all employment data be kept on file permanently. True or False
b. Civil Rights Act of 1964
3. Which of the following Acts established the Equal Employment Opportunity Commission (EEOC)? a. Immigration Reform and Control Act of 1986 b. Civil Rights Act of 1964 c. Age Discrimination in Employment Act d. Americans with Disabilities Act e. None of these choices are correct.
(E) Employee Retirement Income Security Act
3. Which of the following acts covers employee pension and welfare plans? (A) Affordable Care Act (B) Federal Insurance Contributions Act (C) Age Discrimination in Employment Act (D) Family and Medical Leave Act (E) Employee Retirement Income Security Act
False
30. The FLSA requires all employees to be paid weekly or biweekly. True or False
b. An employer with 15 employees
4. All of the following are covered by the Age Discrimination in Employment Act except: a. Employment Agencies b. An employer with 15 employees c. Labor Unions d. State government employee (other than elected officials) e. All of these choices are covered
True
4. In cases where both federal and state regulations cover the minimum wage for the same employee, the higher of the two rates is always used as the standard minimum wage. True or False
(A) Federal Insurance Contributions Act
4. Medicare is a two-part health insurance program that was part of an amendment to what act? (A) Federal Insurance Contributions Act (B) Federal Income Tax Withholding Law (C) Federal Unemployment Tax Act (D) Affordable Care Act (E) Fair Labor Standards Act
b. To prohibit discrimination on the basis of age in the employment practices of employer
4. What is the purpose of the Age Discrimination in Employment Act (ADEA)? a. To provide protection only for workers under the age of 18 b. To prohibit discrimination on the basis of age in the employment practices of employer c. Both of these choices are correct. d. Neither of these choices is correct.
True
5. All of following statements are a provision of ERISA (Employee Retirement Income Security Act) 1974? - ERISA applies to pension and welfare plans established by any employer engaged in commerce. ERISA establishes minimum vesting schedules that protect the workers' benefits. -ERISA requires each employer to establish a pension plan. True or False
True
5. Form I-9 must be completed by each new hire True or False
a. Immigration Reform and Control Act of 1986
5. Form I-9, Employment Eligibility Verification, is required due to which of the following acts: a. Immigration Reform and Control Act of 1986 b. Age Discrimination in Employment Act c. Americans with Disabilities Act d. Civil Rights Act of 1964 e. None of these choices are correct.
False
5. Those records that are required by the various payroll laws must generally be kept on file for only the current year. True or False
(C) ERISA provides that all employees are eligible to set up their own individual retirement accounts.
5. Which of the following statements is not a provision of ERISA (Employee Retirement Income Security Act) 1974? (A) ERISA applies to pension and welfare plans established by any employer engaged in commerce. (B) ERISA establishes minimum vesting schedules that protect the workers' benefits. (C) ERISA provides that all employees are eligible to set up their own individual retirement accounts. (D) ERISA requires each employer to establish a pension plan. (E) All of the above are provisions of ERISA.
d. All of these choices are correct.
6. Under the FLSA, what information concerning employees' wages must be maintained by the employer? a. The amount and nature of exempt pay b. The payroll period c. The total additions to or deductions from wages d. All of these choices are correct.
False
6. Unions and employment agencies are excluded from coverage under the Civil Rights Act of 1964. True or False
(B) Walsh-Healey Public Contracts
6. Which of the following acts deals with the minimum wage paid to laborers for contractors who supply materials to any agency of the United States? (A) Davis-Bacon (B) Walsh-Healey Public Contracts (C) Federal Insurance Contributions (D) McNamara-O'Hara Service Contract, (E) None of these.
b. Medicare
6. Which of the following is a part of the social security program? a. State Income tax withholding b. Medicare c. Federal unemployment taxes (FUTA) d. Federal income tax withholding e. All of these choices are part of the social security program.
True
7. Employers' photocopying of new employees' I-9 documents is not required under the Immigration Reform and Control Act. True or False
a. Employment eligibility of new hires
7. The E-Verifying program is a system to check the: a. Employment eligibility of new hires b. Health status of employees on medical leave c. Age of new hires d. Social Security status of new hires e. Vesting status of all employees
(E) Employee's earnings record
7. Which of the following forms is used to complete each employee's Form W-2, Wage and Tax Statement? (A) Payroll register (B) Employee's paycheck (C) Change in payroll rate form (D) Employee's individual retirement account (E) Employee's earnings record
a. Payroll register
7. Which of the following is a multicolumn form used to assemble and summarize the data needed at the end of each payroll period? a. Payroll register b. Change in payroll rate form c. Reference inquiry form d. Employee history record e. None of these choices are correct.
True Executives who are 65 or older and who have held high policy-making positions during the two-year period prior to retirement are not Covered under Age Discrimination Act (ADEA)
8. An exception to the protection that the Age Discrimination in Employment Act provides for all workers over 40 involves executives who are 65 or older and who have held high policy-making positions during the two-year period prior to retirement. True or False
(D) 40
8. Protection under the provisions of the Age Discrimination in Employment Act begins at what age? (A) 18, (B) 65 (C) 21 (D) 40 (E) 50
False
8. The Age Discrimination in Employment Act protects virtually all workers, but only to the age of 70. 8. True or False
d. All of these choices are correct.
8. Which of following steps should be taken by the Human Resources Department when hiring new employees? a. Personnel files should be prepared b. References should be checked c. Tests may be administered d. All of these choices are correct.
b. An employer with 15 employees
9. All of the following are covered by the Age Discrimination in Employment Act except: a. State government employees (other than elected officials) b. An employer with 15 employees c. Employment Agencies d. Labor Unions e. All of these choices are covered.
False
9. Employment aplication froms are usually discard when the application is hired. True or False
False
9. FICA taxes are levied upon employers only. True or False
FUTA Tax (Federal Unemployment Tax Act):
A payroll tax paid by employers on employee wages -The tax is 6.0% on the first $7,000 an employee earns -any earnings beyond $7,000 are not taxed. -In practice, the actual percentage paid is usually 0.6%
Fringe Benefits
Benefits that are additions to compensation that companies give their employees. - include health insurance, life insurance, tuition assistance, childcare reimbursement, cafeteria reimbursement, below-market loans, employee discounts, employee stock options, and personal use of a company-owned vehicle.
The Fair Labor Standards Act (FLSA)
Federal law which establishes minimum wage, overtime pay eligibility, recordkeeping, and child labor standards affecting full-time and part-time workers in the private sector and in federal, state, and local governments. Also known as Federal Wage and Hour Law
Income tax withholding laws
Income tax is levied on the earnings of most employees and is deducted from their gross pay. Income taxes can be imposed by federal, state, and local governments. Federal Income Tax (FIT) employs a percentage formula used by each employer to withhold a specified amount from each wage payment. State tax rates vary from state to state.
True
Medicare is a two-part health insurance program that was part of an amendment to what act? Federal Insurance Contributions Act True or False
