ACC. 132 Chapter 1 & 2

Carolyn Clark, a full-time student at Atlanta State University, works at the Barclay Dress Shop. In order not to violate the FLSA, the least salary that Barclay could pay Clark for her 28-hour workweek is

$ 172.76 (6.17 x 28)

Jack Kenston works a 40-hour week with overtime paid at 1½ times his regular rate of pay of $14.88. This week he worked 42 hours, which resulted in a gross pay of

$ 639.84 (40 x $14.88)+(14.88 x 1.5 x 2)

Stacy Forvour is a salaried employee who works fluctuating workweeks. She is paid $680 per workweek. This week, she worked 46 hours. Forvour's total gross pay if her employer uses the special half-rate (based on total hours worked) for overtime pay is

$ 724.34 (680 / 46 = 14.78 14.78 x 0.5 = 7.39 7.39 x 6 = 44.34 44.34 + 680 = 724.34)

The Fair labor Standards Act has set the current minimum hourly rate of pay at:

$7.25

Under the Affordable Care Act, what are the minimum essential coverage tests that the insurance provided by the employer must satisfy?

1. Affordability test—employee's premium contribution for self-only coverage for the lowest cost plan cannot exceed 9.5 percent of employee's household income. 2. Value test—plan that pays at least 60 percent of medical expenses on average for a standard population.

Carson Beck works at the local Worst Buy Shop. As a full-time student at the local university, he is being paid an hourly rate of $4.20 an hour. One week, Beck worked 37 hours.

1. Beck's earnings for the week are: $155.40 (37 hours × $4.20 = $155.40) 2. Hourly rate in violation of FLSA (less than 6.17) 3. Amount shop needs to pay for week: $228.29 (37 hours × $6.17 = $228.29)

Which of the following are processes that occur in most payroll accounting systems?

1. Computation of gross pay, deductions and net pay 2. Recording hours worked or units produced 3. Preparation of payroll reports

Which basic records are generated in most payroll accounting systems?

1. Payroll register 2. Employee's earnings record"

Which of following steps should be taken by the Human Resources Department when hiring new employees?

1. Personnel files should be prepared 2. Tests may be administered 3. References should be checked

What information is commonly provided by a job-seeker on the application for employment form?

1. References 2. Employment and experience history 3. Educational background, including a summary of the schools attended, whether the applicant graduated, and degrees conferred

Under the FLSA, what information concerning employees' wages must be maintained by the employer?

1. The amount and nature of exempt pay 2. The total additions to or deductions from wages 3. The payroll period

Ben Lieber is a waiter at Harbor House, where he receives a weekly wage of $80 plus tips for a 40-hour workweek. Lieber's weekly tips usually range from $280 to $400.

1. Under the Fair Labor Standards Act, the minimum amount of wages that Lieber must receive for a 40-hour workweek is: $85.20 ($2.13 × 40 = $85.20* minimum weekly wages. *In order to be able to pay just the minimum ($85.20) for a 40-hour week, the employee must receive at least $204.80 in tips ($290.00 - $85.20).) 2. Since Harbor House is in violation of the FLSA, the additional amount it should pay Lieber each week to meet the minimum wage requirement for a tipped employee is: $5.20 ($ 85.20 min weekly wages - 80.00 wkly wage reg. paid $ 5.20 additional weekly wage due)

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?

1. What is your race? 2. What is your gender? 3. What is your religion?

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?

12

Protection under the provisions of the Age Discrimination in Employment Act begins at what age?

40

The Age Discrimination in Employment Act provides protection to virtually all workers over the age of:

40

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?

Age

Who pays the social security taxes that are levied by the Federal Insurance Contributions Act?

Both employee & employer

What is the primary purpose of the Employee Retirement Income Security Act (ERISA)?

ERISA ensures that workers covered by private pension plans receive benefits from those plans in accordance with their credited years of service with their employers.

Which of the following statements is not a provision of ERISA?

ERISA requires each employer to establish a pension plan.

Which of the following acts covers employee pension and welfare plans?

Employee Retirement Income Security Act

Which of the following forms is used to complete each employee's Form W-2, Wage and Tax Statement?

Employee's earnings record

Title VII of the Civil Rights Act is referred to as the:

Equal Employment Opportunity Act

Which of these employee types is an allowable exception to the protection of the Age Discrimination in Employment?

Executive employees who are 65 years or older and have held high policymaking positions during the two-year period prior to retirement

How are the funds used which are provided by FUTA and SUTA?

FUTA funds are used to pay the state and federal administrative expenses and SUTA funds are used to pay the unemployment compensation benefits to the qualified unemployed workers.

Which of the following laws establishes the minimum wage?

Fair Labor Standards Act

Exempt professional employees are exempt from all provisions of the FLSA—minimum wages, overtime pay, and equal pay.

False

Which of the following acts deals with the unpaid leave for a family or medical emergency?

Family and Medical Leave Act of 1993

Which of the following is not part of the social security program?

Federal Income Tax Law

Medicare is a two-part health insurance program that was part of an amendment to what act?

Federal Insurance Contributions Act

Which of the following acts levies a tax on employers and employees that is credited to the Federal Old-Age and Survivors' Trust Fund and the Federal Disability Insurance Trust Fund?

Federal Insurance Contributions Act

What tax act levies a tax on employers to pay state and federal administrative expenses of the unemployment program?

Federal Unemployment Tax Act

Which of the following is not a provision of the Fair Labor Standards Act (FLSA)?

Forbids discrimination in hiring

Who is covered by the Walsh-Healey Public Contract Act?

Laborers for contractors who furnish materials, supplies, articles, and equipment to any agency of the United States, provided the minimum contract amount is $10,000

Which of the following is a part of the social security program?

Medicare

In January 2017, the minimum hourly wage was:

None of these choices are correct.

At a minimum, how often should an administrator furnish a statement of total benefits accrued and accrued benefits that are vested under ERISA?

Once in 12 month period

Which of the following acts prohibits discriminating in hiring, firing, promoting, compensating, or in any other condition of employment on the basis of race, color, religion, gender, or national origin?

The Civil Rights Act of 1964

Which act sets the minimum wage, and what is the current wage rate?

The Fair Labor Standard Act sets the minimum wage and the current minimum wage rate is $7.25 per hour.

What obligations are imposed upon the employer by the Fair Credit Reporting Act of 1968?

They must disclose to the job applicant that they are seeking an investigative report.

How can the information shown in the employees' earnings record be used?

To prepare period reports and complete Form W-2 for each employee

What is the purpose of the Age Discrimination in Employment Act (ADEA)?

To prohibit discrimination on the basis of age in the employment practices of employer

What is vesting?

Vesting conveys to employees the right to share in the retirement fund in the event they are terminated before the normal retirement age.

Which of the following laws protect employees against losses due to work-related injury:

Workers' Compensation

Under the FLSA, overtime pay is required for:

all hours worked in excess of 40 in a workweek

Those tasks that employees must perform and which include any work of consequence performed for the employer are known as:

principal activities

ERISA provides for full vesting of the employer's contribution to an employee's pension fund in three years or gradually over:

six years

Pre-hire questions pertaining to religion, gender, national origin, or age are allowed if:

these factors are bona fide occupational qualifications for the job

Form I-9, which is completed by each employee, deals with:

verification of employment eligibility.