FPC - All
An independent contractor invoiced a company $901.00 for services performed. The contractor did not provide a TIN before the payment was made. Calculate the federal income tax that must be withheld from the contractor's payment.
$252.28 ($901.00 * 0.28) ***A 28% backup withholding tax on nonwage payments is withheld if the payee has failed to provide a Taxpayer Identification Number (TIN) or the IRS has notified the payer that the TIN is incorrect.***
An independent contractor invoiced a company $1,401.00 for services performed. The contractor did not provide a TIN before the payment was made. Calculate the federal income tax that must be withheld from the contractor's payment.
$392.28 (1401 * 0.28) ***A 28% backup withholding tax on nonwage payments is withheld if the payee has failed to provide a Taxpayer Identification Number (TIN) or the IRS has notified the payer that the TIN is incorrect.***
An independent contractor invoiced a company $1,601.00 for services performed. The contractor did not provide a TIN before the payment was made. Calculate the federal income tax that must be withheld from the contractor's payment.
$448.28 ($1601.00 * 0.28) ***A 28% backup withholding tax on nonwage payments is withheld if the payee has failed to provide a Taxpayer Identification Number (TIN) or the IRS has notified the payer that the TIN is incorrect.***
Under the FLSA, the minimum weekly salary an exempt executive can be paid is:
$455.00 weekly.
An employee lives in a state that has a minimum wage of $7.25 per hour but works in another state where the minimum wage is $7.85 per hour. What is the minimum hourly rate the employee must be paid?
$7.85
Which of the following workers is classified as an employee?
**A. An executive assistant earning an annual salary of $105,000.00** B. An engineer employing assistants to complete a project C. A marketing consultant contracted to conduct an employee/customer satisfaction study D. A lawyer retained on a project-by-project basis
Which of the following workers would be classified as an independent contractor?
A commercial artist furnishing her own tools and equipment and making a profit or loss
Which of the following workers is classified as an employee?
A day-care worker guaranteed a minimum salary plus a percentage of the profits
Which payments are not included in the regular rate of pay
A gift is an amount paid to an employee on a special occasion. It is not included in employees' regular rate of pay so long as the amount does not depend on hours worked, production, or efficiency. The amount may be different for each employee if it is based on a percentage of salary or length of service. Reimbursed expenses are payments for business-related expenses incurred by an employee on behalf of, or for the convenience of, the employer. Paid time off is payment received for time not worked due to holiday, illness, vacation, jury duty, bereavement, or the failure of the employer to provide sufficient work (not layoffs or reduced work schedules). Paid time off is not included in an employee's regular rate of pay, nor are the hours counted to determine if the employee works more than 40 hours in a week.
Which of the following workers is an independent contractor?
A lecturer paid a percentage of the proceeds
Which of the following workers is classified as an employee?
A salaried copywriter who is required to work on-site and comply with the company's rules about starting and ending hours
Which of the following workers is classified as an employee? A. A clerk working evenings until the company can find a replacement B. An engineer employing assistants to complete a project C. A lecturer paid a percentage of the money collected at fund raisers D. A marketing consultant contracted to conduct an employee/customer satisfaction study
A. A clerk working evenings until the company can find a replacement
Which of the following workers is an independent contractor? A. A lecturer paid a percentage of the proceeds B. A salaried salesperson calling on leads provided by a company C. A former employee rehired after retirement to complete a task begun before retirement D. An executive secretary earning $105,000.00 annual salary
A. A lecturer paid a percentage of the proceeds
Which of the following workers is classified as an employee? A. A salaried salesperson calling on leads provided by his company B. A lecturer paid a percentage of the money collected at fund raisers C. A commercial artist furnishing her own tools and equipment D. A lawyer retained on a project-by-project basis
A. A salaried salesperson calling on leads provided by his company
Which employee can file Form W-4 claiming exempt? A. An employee who had no tax liability last year and expects to have no tax liability this year B. A part-time student earning an average of $350.00 per week and claimed as a dependent C. An employee exempt in 2015 who hasn't filed a new Form W-4 by February 15, 2016 earning $500.00 per week D. A full-time student earning $350.00 per month and claimed as a dependent
A. An employee who had no tax liability last year and expects to have no tax liability this year ***Exemption From Withholding If an employee claims he or she is exempt from withholding on a Form W-4, employers do not withhold federal income tax. In order to be exempt, the employee must certify on the W-4 form that he or she: * Had a right to a refund of all federal income tax withheld in the prior year because the employee had no tax liability; * Expects to have no tax liability in the current year; and * Cannot be claimed as a dependent on someone else's income tax return if the employee will receive more than $1,050 in income, including more than $350 in unearned income, in the current year.
Which of the following workers is an independent contractor? A. An engineer employing assistants to complete a project B. A clerk working evenings until the company can find a replacement C. A former employee rehired after retirement to complete a task begun before retirement D. A lawyer working as a paralegal
A. An engineer employing assistants to complete a project
Which of the following payments is a discretionary bonus?
A. Attendance B. Project C. Quality **D. Holiday**
An employee's spouse died on July 1. When must the employee file a new Form W-4 with the employer? A. Before the first pay period of the next year B. Before the last pay period of the current year C. By the end of the quarter D. By July 31
A. Before the first pay period of the next year ***Death of spouse. The death of a spouse does not require the surviving spouse to file a new Form W-4 until January 1 of the year after the spouse's death. ***
Which of the following amounts are included in the calculation of an employee's regular rate of pay?
A. Employer benefit plan contributions B. Reimbursed expenses C. Pay for hours not worked **D. Cost-of-living adjustments**
Under the FLSA, which of the following types of pay are employers required to pay nonexempt production employees working more than 40 hours in a week on the night shift?
A. Production bonus B. On call pay C. Shift differential D. Overtime premium**
An employee is confused about how many allowances to claim on Form W-4. The employee's spouse is self-employed and last year they owed a large sum of income tax to the IRS. How can the payroll department help the employee? A. Provide the employee with IRS publications on filing Form W-4 B. Complete a Form W-4 for the employee C. Tell the employee to claim single with zero allowances if confused D. Consult with the employee as to the number of allowances that should be claimed
A. Provide the employee with IRS publications on filing Form W-4 *** You certainly want to help employees understand Form W-4. But do not put yourself in the role of their tax advisor. If you consult with employees as to the number of allowances to claim or the amount of withholding, you may be liable for penalties for underwithholding.***
In which situation would the employer set an employee's withholding status to single and zero allowances? A. When a new employee has submitted an incomplete Form W-4 B. When the employer has received a tax levy on the employee C. When an employee has not submitted a new Form W-4 at the beginning of the calendar year D. When the employee has requested more federal taxes be withheld
A. When a new employee has submitted an incomplete Form W-4 ***If new employees do not furnish a Form W-4 by their first pay period, the employer must withhold as if they were claiming single with no allowances.***
All of the following situations satisfy federal minimum wage requirements as of January 1, 2016, EXCEPT:.
A. an employee, age 18, is paid $127.50 for working 30 hours the first week of employment. B. a security guard paid $7.25 per hour. C. a dishwasher paid $7.05 per hour** D. an employee with ten years seniority receives the federal minimum wage
The common law test is made up of all of the following factors EXCEPT:
A. behavioral control. **B. benefits provided.** C. financial control. D. relationship of the parties.
An employee filing an exempt Form W-4 is exempt from the withholding of: A. federal income tax only. B. social security tax only. C. Medicare tax only. D. all federal taxes.
A. federal income tax only. ***If an employee claims he or she is exempt from withholding on a Form W-4, employers do not withhold federal income tax***
All of the following provisions are a part of the Fair Labor Standards Act EXCEPT:
A. minimum age for work. B. classification of exempt or nonexempt employees. C. eligibility for employment in the U.S.** D. equal pay for equal work
Under the FLSA, the calculation of a nonexempt employee's regular rate of pay must include:
A. nondiscretionary bonuses. ** B. reimbursed expenses. C. paid time off. D. discretionary bonuses.
The primary duties of an exempt administrative employee may include all of the following EXCEPT:
A. receiving shipments at the shipping dock.** B. office work related to general business operations. C. administration of a school system. D. office work related to management policies.
When a new employee does not complete a Form W-4, the marital status and allowances used to calculate the employee's federal income tax is: A. single with 0 allowances. B. single with 1 allowance. C. married with 1 allowance. D. married with 2 allowances.
A. single with 0 allowances. ***If new employees do not furnish a Form W-4 by their first pay period, the employer must withhold as if they were claiming single with no allowances.***
An employee must complete a new Form W-4: A. when allowances decrease. B. when allowances increase. C. every other year. D. upon receiving overtime pay.
A. when allowances decrease.
By claiming the tip credit under the FLSA, what is the minimum hourly cash wage employers can pay employees who report at least $30.00 per month in tips?
ANSWER: 2.13
Changing a workweek
Although the FLSA encourages employers to establish permanent workweeks, changes to the workweek may be necessary to meet changing business needs. To ensure that employees receive all overtime pay to which they are entitled when workweeks change, several steps must be taken. 1.Add overlapping days to the old workweek, then calculate overtime hours and pay for both the old and new workweeks. 2.Add overlapping days to the new workweek, then calculate overtime hours and pay for both the old and new workweeks. 3.Pay the employee the greater amount from Step 1 or Step 2.
An independent contractor invoiced a company $1,301.00 for services performed. The contractor did not provide a TIN before the payment was made. Calculate the federal income tax that must be withheld from the contractor's payment.
Answer: $364.28
Which of the following workers is an independent contractor? A. An executive secretary earning $105,000.00 annual salary B. A lawyer retained on a project-by-project basis C. A clerk working evenings until the company can find a replacement D. A free-lance copywriter required to work on-site and comply with the company's policies
B. A lawyer retained on a project-by-project basis
Who has the responsibility to verify the eligibility to work in the U.S.? A. E-Verify B. Employer C. U.S. Citizenship and Immigration Services D. SSA
B. Employer ***he Immigration Reform and Control Act of 1986 (IRCA) makes it illegal for an employer to hire an unauthorized worker. Employers must comply with this requirement by verifying the identity and right to work of all employees hired after November 6, 1986***
An employee was hired in April 2016 and filed an exempt Form W-4. The employee's Form W-4 expires on: A. December 1, 2016. B. February 15, 2017. C. December 31, 2016. D. January 15, 2017.
B. February 15, 2017. ***When an employee provides their employer with a Form W-4 claiming exemption from withholding, the form is valid for the remainder of that year and until February 15th of the next year.***
A company contracts with a temporary service agency for workers. An employee of the temporary agency is sent to work at the company. The company sets the worker's hours and provides the tools necessary to perform the job. Who, if anyone, has the responsibility of withholding employment taxes from the worker? A. The company B. The temporary service agency C. Neither, the worker is an independent contracto
B. The temporary service agency
An employee is required to file a new Form W-4 within 10 days after all the following situations EXCEPT: A. when an exempt filer realizes the claim of exemption is no longer valid. B. after the birth of a child that is claimed as a dependent. C. when a child marries and is no longer claimed as an exemption. D. when the filing status changes from married to single or head of household due to a divorce.
B. after the birth of a child that is claimed as a dependent. ***If allowances increase. Current employees can file an amended Form W-4 any time their number of allowances increases, for example, at the birth or adoption of a child. ***
Employees provide their employer with their marital status and withholding allowances by: A. completing their employment applications. B. completing Form W-4. C. completing Form I-9. D. telling their supervisor.
B. completing Form W-4.
The initial determination of whether a worker is an employee or an independent contractor is made by the: A. worker. B. employer. C. SSA. D. IRS.
B. employer.
An employer's responsibilities with Form W-4 include: A. requesting a new Form W-4 from each employee each year. An employer's responsibilities with Form W-4 include: A. requesting a new Form W-4 from each employee each year. B. ensuring that Form W-4 is complete. C. notifying the IRS when an employee claims more than ten allowances. D. verifying that an employee's withholding allowances are accurate. C. notifying the IRS when an employee claims more than ten allowances. D. verifying that an employee's withholding allowances are accurate.
B. ensuring that Form W-4 is complete.
An employee first completes Form W-4 when: A. the employee is married. B. first hired. C. the employee is divorced. D. needing to have federal income tax withheld.
B. first hired.
An employer's responsibilities with Form W-4 include: A. requesting a new Form W-4 from each employee each year. B. implementing the Form W-4 within the time allowed. C. verifying that an employee's withholding allowances are accurate. D. notifying the IRS when an employee claims more than ten allowances.
B. implementing the Form W-4 within the time allowed.
The Immigration Reform and Control Act of 1986: A. recommends employers complete section 2 of Form I-9 within five days of hire. B. makes it illegal for an employer to hire an unauthorized worker. C. requires new hires to show two forms of identification when hired. D. suggests employees retain a copy of Form I-9 for at least 3 years from date of hire.
B. makes it illegal for an employer to hire an unauthorized worker. ***The Immigration Reform and Control Act of 1986 (IRCA) makes it illegal for an employer to hire an unauthorized worker. Employers must comply with this requirement by verifying the identity and right to work of all employees hired after November 6, 1986***
An employee is required to file a new Form W-4 in all the following situations EXCEPT: A. when a child is no longer claimed as a dependent. B. when itemized deductions increase. C. with the death of a dependent in the previous year. D. when a divorce is finalized.
B. when itemized deductions increase. ***
An employee's Form W-4 claiming single with 2 allowances expires: A. on the last day of each month. B. when the employee submits a new Form W-4. C. on the last day of each quarter. D. on February 15 of the next year.
B. when the employee submits a new Form W-4. ***The IRS does not require employees to complete a new Form W-4 each year. Employees may be required to complete a Form W-4 when their circumstances change.***
An employee must complete a new Form W-4: A. when the spouse is no longer employed. B. when the employee's marital status changes from married to single. C. each year. D. upon receiving overtime pay.
B. when the employee's marital status changes from married to single.
An employee is required to file a new Form W-4 in all the following situations EXCEPT: A. when a child is no longer claimed as a dependent. B. with the adoption of a child. C. when changing filing status from married to single or head of household. D. when a divorce is finalized.
B. with the adoption of a child
Which of the following workers is classified as an employee? A. A marketing consultant contracted to conduct an employee/customer satisfaction study B. A commercial artist furnishing her own tools and equipment C. A former employee rehired after retirement to complete a task begun before retirement D. A lawyer retained on a project-by-project basis
C. A former employee rehired after retirement to complete a task begun before retirement
Which of the following workers is classified as an employee? A. A lawyer retained on a project-by-project basis B. An engineer employing assistants to complete a project C. A part-time copywriter who is paid a salary and required to work on-site D. A lecturer paid a percentage of the money collected at fund raisers
C. A part-time copywriter who is paid a salary and required to work on-site
Which of the following workers is classified as an employee? A. An engineer working off-site employing assistants to complete a project B. A lecturer paid a percentage of the money collected at fundraisers when speaking C. A salaried copywriter who is required to work on-site and comply with the company's rules about starting and ending hours D. A commercial artist furnishing her own tools and equipment and making a profit or loss
C. A salaried copywriter who is required to work on-site and comply with the company's rules about starting and ending hours
An employee was exempt from federal income tax withholding in 2015 and expects to be exempt again in 2016. By when must the employee file a new Form W-4 to continue the exempt status? A. December 31, 2015 B. January 15, 2016 C. February 15, 2016 D. June 1, 2016
C. February 15, 2016 ***When an employee provides their employer with a Form W-4 claiming exemption from withholding, the form is valid for the remainder of that year and until February 15th of the next year.***
A Taxpayer Identification Number and name reported on Form 1099-MISC can be checked by using the: A. SSA's Social Security Number Verification Service. B. SSA's TIN Matching System. C. IRS's TIN Matching System. D. IRS's Social Security Number Verification System.
C. IRS's TIN Matching System. ***Taxpayer identification number/name combinations that will be reported on Form 1099-MISC can be verified using the IRS' TIN Matching System. However, mismatches noted by the IRS' TIN matching system do not require backup withholding.***
On June 1, an employee was married and changed Form W-4 status from single to married and the number of allowances from one to two. Pay dates are June 12, June 26, July 10, and July 24. If the employee submits a new Form W-4 on June 1, Payroll must implement the change by: A. June 12. B. June 26. C. July 10. D. July 24.
C. July 10. ***When you must change withholding. After a current employee files an amended Form W-4, the change must be reflected in withholding no later than the first payroll period ending on or after the 30th day after receiving the amended Form W-4.***
An employee is paid on the 1st and 15th of each month. The employee submits a new Form W-4 on June 10. The employer must implement the new W-4 no later than the: A. June 15th payroll. B. July 1st payroll. C. July 15th payroll. D. August 1st payroll.
C. July 15th payroll. ***When an employee files an amended Form W-4, it must be put into effect no later than the beginning of the first payroll period ending on or after 30 days after the form is filed.
An employee who is paid on the first and fifteenth of the month is planning to marry on June 15. The earliest the employee can complete a new Form W-4 changing marital status from single to married is: A. June 1. B. June 14. C. June 15. D. July 1.
C. June 15. ***Changes cannot be made in advance. Employees cannot submit a revised Form W-4 in anticipation of a change. For example, if they expect to be married, they cannot change their marital status or number of allowances until after the wedding. ***
An employee who is a full-time student is claimed as a dependent by her parents. What conditions must exist for the employee to claim exempt status on Form W-4? A. Only unearned income is less than $250.00. B. Only total income is less than $900.00. C. Total income is not more than $1,050.00 including unearned income of not less than $350.00. D. There are no limits for students to claim exempt.
C. Total income is not more than $1,050.00 including unearned income of not less than $350.00. ***Cannot be claimed as a dependent on someone else's income tax return if the employee will receive more than $1,050 in income, including more than $350 in unearned income, in the current year.***
A company is required to withhold taxes from an independent contractor when: A. total payments in a calendar year exceed $600.00. B. total payments in a calendar year exceed $1,000.00. C. a TIN is not provided. D. an address is not provided.
C. a TIN is not provided. ***If the independent contractor has provided a TIN, the company has no responsibility to withhold taxes from payments to the contractor.***
To satisfy the Reasonable Basis test and treat a worker as an independent contractor, a company can rely on all of the following methods EXCEPT: A. showing at least 25% of its industry treats similarly situated workers as independent contractors. B. a private letter ruling issued to the company indicating the worker is an independent contractor. C. a private letter ruling issued to another company in the same industry indicating similarly situated workers are independent contractors. D. information from published IRS rulings.
C. a private letter ruling issued to another company in the same industry indicating similarly situated workers are independent contractors
An employee's Form W-4 is complete when the form includes: A. a signature only. B. a date only. C. a signature and date. D. the employee's statement that the form is complete.
C. a signature and date. ***Ensuring that Form W-4 is complete. Check to make certain that each employee's Form W-4 is signed and dated and that the social security number is accurate. Reject any Forms W-4 that are invalid.***
The common law test is made up of all of the following factors EXCEPT: A. behavioral control. B. financial control. C. benefits provided. D. relationship of the parties.
C. benefits provided.
An employee who files an exempt Form W-4 in 2016 must have: A. been a full-time student earning $350.00 per month and claimed as a dependent in 2015. B. filed a Form W-4 in 2015. C. had no tax liability in 2015 and expect to have no tax liability in 2016.
C. had no tax liability in 2015 and expect to have no tax liability in 2016.
Form SS-5 is used to: A. verify social security numbers of employees. B. obtain a determination of worker status. C. obtain a new social security card or have a card reissued. D. report special wage payments.
C. obtain a new social security card or have a card reissued. ***Form SS-5, Application for a Social Security Card, is used by individuals to obtain a new social security card or have their card reissued.***
If a Form W-4 is incomplete, the employer must: A. ask the employee to provide the missing information on the form. B. tell the employee the form is incomplete. C. reject the form. D. implement the form and ask the employee to complete another form.
C. reject the form. ***Ensuring that Form W-4 is complete. Check to make certain that each employee's Form W-4 is signed and dated and that the social security number is accurate. Reject any Forms W-4 that are invalid.***
Employers have the following responsibilities for Form W-4 EXCEPT: A. responding when the IRS requests an employee's W-4 form. B. ensuring that Form W-4 is complete. C. requesting new Forms W-4 from each employee each year. D. withholding based on the marital status and number of allowances claimed.
C. requesting new Forms W-4 from each employee each year.
An employee completed Form W-4 claiming married with three allowances when hired. The employee must complete a new Form W-4: A. February 15 of each year. B. December 31 of each year. C. when marital status changes or allowances decrease. D. when marital status changes or allowances increase.
C. when marital status changes or allowances decrease ***If allowances decrease. If allowances decrease (thus increasing the amount withheld each pay period), employees must file an amended Form W-4 within 10 days. This could happen when: — An employee is divorced or legally separated. — Someone else takes over support of a dependent. — A nonworking spouse takes a job. Employers are not required to monitor employees for changes that decrease allowances. ***
Which of the following workers would be classified as an independent contractor? A. A day-care worker receiving a guaranteed minimum salary plus a percentage of the fees collected from her clients B. A former employee rehired after retiring to complete a task started before retirement C. A salaried copywriter required to work on-site and comply with the company's rules about starting and ending hours D. A commercial artist furnishing her own tools and equipment and making a profit or loss
D. A commercial artist furnishing her own tools and equipment and making a profit or loss ***Payment by the job; opportunity for profit and loss***
Which of the following workers is classified as an employee? A. A commercial artist furnishing her own tools and equipment B. A marketing consultant contracted to conduct an employee/customer satisfaction study C. A lecturer paid a percentage of the money collected at fund raisers D. A day-care worker guaranteed a minimum salary plus a percentage of the profits
D. A day-care worker guaranteed a minimum salary plus a percentage of the profits
When an employee wants to continue her exempt status the next year, she must file a new Form W-4 by: A. December 31. B. January 1. C. January 31. D. February 15.
D. February 15.
If an employee's spouse dies, the employee must submit an amended Form W-4 by: A. the next payroll period. B. the first day of the next month. C. the end of next quarter of the current year. D. January 1 of the following year.
D. January 1 of the following year. ******Death of spouse. The death of a spouse does not require the surviving spouse to file a new Form W-4 until January 1 of the year after the spouse's death. ***
When Form W-4 has been completed properly, what information is used to determine the employee's federal income tax withholding? A. Marital status only B. Only the number of allowances claimed C. Only any additional amount requested D. Marital status, number of allowances claimed, and additional amount requested
D. Marital status, number of allowances claimed, and additional amount requested ***Employees may indicate on the W-4 if they want an additional dollar amount withheld in excess of the amount based on their marital status and withholding allowances.***
What taxes, if any, must be withheld from payments to an independent contractor? A. Federal income tax only B. Social security and Medicare taxes only C. Federal income, social security, and Medicare taxes only D. No federal employment taxes are required to be withheld
D. No federal employment taxes are required to be withheld - ***If the independent contractor has provided a TIN, the company has no responsibility to withhold taxes from payments to the contractor.***
A company is required to withhold taxes from an independent contractor when: A. the contractor fails to provide a certificate of compliance. B. the contractor provides a Form W-4. C. total payments in a calendar year exceed $600.00. D. a TIN is not provided.
D. a TIN is not provided. ***If the independent contractor has provided a TIN, the company has no responsibility to withhold taxes from payments to the contractor.***
To satisfy the Reasonable Basis test and treat a worker as an independent contractor, a company can rely on all of the following methods EXCEPT: A. a private letter ruling issued to the company indicating the worker is an independent contractor. B. information from published IRS rulings. C. showing at least 25% of its industry treats similarly situated workers as independent contractors. D. a private letter ruling issued to another company in the same industry indicating similarly situated workers are independent contractors.
D. a private letter ruling issued to another company in the same industry indicating similarly situated workers are independent contractors. ***Reasonable basis may consist of one or more of the following: Court decisions, published IRS rulings, IRS technical advice sent to the employer, or a private letter ruling from the IRS to the employer indicating that the worker is not an employee A past IRS audit of the employer that did not result in a finding of taxes owed or a penalty attributable to the employer's treatment of the worker as an independent contractor (audits occurring after December 31, 1996, may not be relied on unless they include an employment classification audit of the worker involved or the audit of a similarly situated worker) Guidance from an attorney or CPA who know the business A long-standing, recognized practice in a significant segment of the employer's industry of treating workers in similar situations as independent contractors***
Employers must remind employees to complete an amended Form W-4 if they have any changes in status: A. by December 31 of each year. B. it is not the employer's responsibility. C. whenever notified of a change in marital status. D. by December 1 of each year.
D. by December 1 of each year. ***IRS regulations say that employers should remind their employees by December 1 to submit revised Forms W-4 if their marital status or number of allowances has changed.***
An employee is required to file a new Form W-4 after the: A. adoption of a child. B. birth of a child. C. itemized deductions increase. D. death of a dependent child in the previous year.
D. death of a dependent child in the previous year. ***Death of a dependent child. The death of a dependent child does not require a new Form W-4 be filed until January 1 of the year after the dependent child's death.***
All of the following actions are requirements of the common law test for determining a worker's status EXCEPT when the: A. employer determines when, where and how to work. B. work is done personally by the worker. C. employer furnishes tools, equipment, materials and training. D. employer has treated the worker or similar workers as employees.
D. employer has treated the worker or similar workers as employees. ***See Common Law Test for Determining Whether a Worker Is an Employee chart***
An employee provides a new Form W-4 on August 15. The employer must retain the prior Form W-4 until: A. January 1 of the following year. B. April 15 of the following year. C. four years after the new form was filed. D. four years after the last tax return was filed using the information on the Form W-4.
D. four years after the last tax return was filed using the information on the Form W-4. ***Record keeping. Keep all Forms W-4 on file for at least four years from the date of the last tax return filed using information from the Form W-4.***
Employees can file an exempt Form W-4 when they: A. do not want taxes withheld this year. B. expect to owe no taxes this year. C. owed taxes last year and expect to owe taxes this year. D. had no tax liability last year and expect to have no tax liability this year.
D. had no tax liability last year and expect to have no tax liability this year.
When managing employees' Forms W-4 the employer must: A. advise employees about the number of allowances they can claim. B. file all new Forms W-4 with the IRS every year. C. verify that an employee's withholding allowances are accurate. D. remind employees by December 1 to submit new Forms W-4 if their marital status or number of allowances has changed.
D. remind employees by December 1 to submit new Forms W-4 if their marital status or number of allowances has changed.
When an employer enters into contracts with the federal government, in certain situations, the employer must pay a minimum wage of $10.10 per hour to all employees working under the contract.
Executive Order Minimum Wage (EOMW).
A Taxpayer Identification Number and name reported on Form 1099-MISC can be checked by using the:
IRS's TIN Matching System
What taxes, if any, must be withheld from payments to an independent contractor?
No federal employment taxes are required to be withheld
A 15-year-old employee works part-time. Under the FLSA, when school is not in session, what hours can the employee work?
Only until 9:00 p.m.
Regular Rate of pay
Payments in a form other than cash are payments to an employee in the form of goods or services. The reasonable cost to the employer or the fair market value of the goods or services must be included when determining the regular rate of pay. For example, an employer may provide an employee room and board that is included in the regular rate of pay calculation. Retroactive pay is pay for time worked in a previous workweek. Retroactive pay must be applied to both regular and overtime hours. This is true when the retroactive pay is in the form of an hourly increase, or in the form of a lump-sum payment that must be allocated to weeks or hours worked in the same way as a nondiscretionary bonus. On-call pay is pay received for compensated "on-call" time worked. In some organizations, call-in pay is paid as an incentive to encourage employees to be available for emergencies. In both cases, the payment is included in the regular rate of pay calculation. A supplemental disability payment is a payment to bring the wage of a partially disabled worker up to the employee's pre-disability wage level.
The job description has the title of a supervisor. When determining if a position is exempt or nonexempt, the entire job needs to be reviewed and not just the title. In this case, the title does not match the job description. Though the title would indicate a potential job description of an exempt employee, the actual job duties and salary requirements do not allow this job to be recognized as an exempt position. This is a nonexempt job. The regulations provide that, in general, any employee earning less than $455 a week ($23,660 a year) will be a nonexempt employee entitled to overtime pay, whether the employee is paid on an hourly or salary basis. A supervisory job like this, in order to be considered under the executive employee's exemption, must also include the following standard duties: 1.has the primary duty of managing the enterprise in which he or she is employed, or of a customarily recognized department or subdivision of it; 2.customarily and regularly directs the work of two or more other employees; and 3.has the authority to hire or fire other employees, or whose suggestions and recommendations on the hiring, firing, advancement, promotion, or any other change of status of other employees are given "particular weight."
Person performs a variety of routine office/clerical duties such as: •filing, •coding, •posting, and •typing. May require keyboard skills and elementary knowledge of word processing, spreadsheet, or database programs. Generally requires 6 months to 1 year of office experience. Does not require payroll or accounting knowledge. Works under close supervision. Maximum salary is $400 per week.
George Great has provided a Form W-4 timely in order to process it for the first pay period. However, in completing Form W-4, he has not followed the instructions properly and his Form W-4 is invalid. George's employer must ask him to complete a new form before his first payroll is processed. If he fails to timely complete a valid Form W-4, George's employer should withhold federal income tax as if he had filed a Form W-4—claiming Single with zero allowances until a new Form W-4 is correctly completed and given to the employer
The corrections to this form include: Correction 1: Employees must check the appropriate box in Line 3 indicating their marital status for withholding purposes. Correction 2: Line 5 asks for a total number of allowances and George wrote in a flat amount to be withheld per week. If he would like a flat amount withheld in addition to the federal taxes withheld based on the number of allowances claimed, the additional dollar amount would go on Line 6. Correction 3: Each employee must sign and date the Form W-4. George did not do this.
Under the FLSA, when is a bonus considered a discretionary bonus?
The employer retains the discretion to pay and determine the amount of the bonus.
A company contracts with a temporary service agency for workers. An employee of the temporary agency is sent to work at the company. The company sets the worker's hours and provides the tools necessary to perform the job. Who, if anyone, has the responsibility of withholding employment taxes from the worker?
The temporary service agency
What is a workweek
The workweek does not have to be the same as a calendar week or begin at the start of a day. However, the workweek must include seven consecutive 24-hour periods. The workweek may also differ from the pay period. The workweeks can also vary between employees. Example: The Early Morning Bagel Company has shifts that begin at 2:00 a.m. To accommodate its production schedule, the company established a workweek that begins at 2:00 a.m. Wednesday and ends at 2:00 a.m. the following Wednesday. This workweek is allowed under the FLSA.
A restaurant pays tipped employees $5.38 per hour. In January 2016, a tipped employee at the restaurant works 36 hours in the workweek and receives $87.00 in tips. Calculate the employee's total pay (including the tips) for the week.
When calculating total pay (wages paid by the restaurant and tips) for a tipped employee, figure the employee's hourly rate and compare it to the minimum wage as of January 1, 2016, to determine if supplemental pay is also required. Step 1. Pay: 36 hours x $5.38/hour = $193.68 Step 2. Regular pay: $87.00 (tips) + $193.68 = $280.68 Step 3. Regular rate of pay: $280.68 ÷ 36 hours = $7.80/hour (Regular pay rate is equal to or greater than the minimum wage of $7.25/hour.) Step 4. Total pay (including tips): $193.68 (regular pay) + $87.00 (tips) = $280.68
A company is required to withhold taxes from an independent contractor when:
a TIN is not provided.
All of the following situations satisfy federal minimum wage requirements, EXCEPT:
a part-time employee is paid $6.60 per hour.
To satisfy the Reasonable Basis test and treat a worker as an independent contractor, a company can rely on all of the following methods EXCEPT:
a private letter ruling issued to another company in the same industry indicating similarly situated workers are independent contractors.
A nonexempt employee worked the following hours in a biweekly pay period: WEEK 1 Sunday Monday Tuesday Wednesday Thursday Friday Saturday 3 9 6 10 8 5 7 WEEK 2 Sunday Monday Tuesday Wednesday Thursday Friday Saturday 2 8 7 9 8 5 0 Calculate the total hours to be paid for the two-week period.
ans: 87
Under the FLSA, a workweek starts on:
any day at any time.
Under the FLSA, a nonexempt employee must be compensated for attending a meeting when:
attendance is required by the employer.
All of the following actions are requirements of the common law test for determining a worker's status EXCEPT when the:
employer has treated the worker or similar workers as employees.
The initial determination of whether a worker is an employee or an independent contractor is made by the:
employer.