FPC Chapter 1
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
If a state wage and hour law requires an employee be paid an overtime premium when the employee works more than 8 hours in a day and the employee works the following schedule, calculate the employee's overtime hours. Sunday Monday Tuesday Wednesday Thursday Friday Saturday 5 8 9 9 10 7 7
answer 15 State Overtime Requirements Even though the FLSA requires that overtime be paid to nonexempt employees who work over 40 hours in a workweek, each state can set its own overtime requirements. Some states require that a 50% overtime premium be paid on a daily basis after a nonexempt employee works 8 hours in a day or that a 100% overtime premium be paid when the employee works more than 12 hours in a day.
A hospital employee working under the 8/80 provision works 5 days, 8 hours a day in the first week and 4 days at 10 hours a day in the second week. Calculate the overtime hours, if any, the employee must be paid.
answer: 8 Example: Jack, a nonexempt hospital employee, has agreed with the hospital to work on a 14-day work period basis, and his regular rate of pay is $12 an hour. Jack works 5 days at 8 hours each and 4 days at 10 hours each during the 14-day period. Total hours worked: (5 x 8) + (4 x 10) = 80 Hours over 8 per day: (10 - 8) x 4 = 8 Jack is required to be paid overtime pay for his 8 hours worked over 8 per day during the 14-day period. Even though Jack's total hours for the 14-day work period did not exceed 80, he must be paid overtime pay for the 8 hours worked over 8 in a day. Jack's total earnings are determined as follows:
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.
A manager, supervising four full-time employees, is paid a monthly salary of $4,000.00. He worked 35 hours during week one, 55 hours during week two, 40 hours during week three, and 50 hours during week four. Under the FLSA, how many hours of overtime, if any, must he be paid?
0 he is an exempt ee
A payroll department manager, supervising five full-time employees, is paid a monthly salary of $2,500.00. One month, the employee works 35 hours during week one, 55 hours during week two, 40 hours during week three, and 50 hours during week four. Under the FLSA, how many hours of overtime, if any, must the employee be paid?
0 they are an exempt ee
An advertising department manager, supervising five full-time employees, is paid a monthly salary of $3,500.00. Last month, the employee worked 35 hours the first week, 55 hours week two, 40 hours week three, and 50 hours week four. Under the FLSA, how many hours of overtime, if any, must the employee be paid?
0-exempt ee
A nonexempt employee is paid monthly. Last month, the employee worked 30 hours during week one, 60 hours during week two, 40 hours during week three, and 45 hours during week four. Under the FLSA, calculate the employee's overtime hours for the month.
25
If the federal minimum wage is $7.25 per hour and the state minimum wage is $8.00 per hour, what is the minimum amount an employer, covered by both the FLSA and state minimum wage law, must pay nonexempt employees?
8.00
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**
A 15-year-old employee works part-time while school is in session. Under the FLSA, which of the following hours can the employee work? A. From 4:00 p.m. to 7:00 p.m. B. From 6:00 a.m. to 7:00 p.m. C. Until 10:00 p.m. on Monday D. After 9:00 p.m. on Saturday
A. From 4:00 p.m. to 7:00 p.m.
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**
Under the FLSA, when a nonexempt employee receives a retroactive pay increase, over what period of time, if any, will the new pay rate impact the employee's overtime premium? A. The entire period of the retroactive increase B. Only the current workweek C. Only the current pay period D. It does not have to be considered in the overtime premium
A. The entire period of the retroactive increase
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
An employee works from midnight to 8:00 a.m. on a company paid holiday but does not work more than 40 hours during the workweek. Under the FLSA, the employee must be paid: A. at least the federal minimum wage for all hours worked. B. time and one-half for working the holiday. C. double time for working the holiday. D. a shift differential for working the late-night shift.
A. at least the federal minimum wage for all hours worked.
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.
Under the FLSA white-collar exemption rules, an exempt outside sales employee must meet all of the following requirements EXCEPT: A. being paid a salary of at least $455.00 a week. B. regularly working away from the employer's place of business. C. obtaining orders as the employee's primary duty. D. making sales as the employee's primary duty.
A. being paid a salary of at least $455.00 a week.
Under the FLSA's white collar exemptions rules, an exempt administrative employee must meet all of the following requirements EXCEPT:
A. being paid a weekly salary of at least $455.00. B. managing a customarily recognized department.** C. exercising discretion on matters of significance. D. performing non-manual work relating to the general business operations.
Employees provide their employer with their marital status and withholding allowances by:
A. completing Form W-4.
Under the FLSA, rounding of recorded employee work time must be: A. consistent. B. at the employer's discretion. C. at the employee's discretion. D. done in 30 minute increments.
A. consistent.
Under the FLSA, an employee is engaged to be waiting when the employer:
A. does not restrict the employee's behavior and permits personal business. B. does not restrict the employee's behavior and does not permit personal business. C. restricts the employee's behavior and does not permit personal business.** D. restricts the employee's behavior and permits personal business.
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.
Employees can file an exempt Form W-4 when they: A. had no tax liability last year and expect to have no tax liability this year. B. expect to owe no taxes this year. C. owed taxes last year and expect to owe taxes this year. D. do not want taxes withheld this year.
A. had no tax liability last year and expect to have no tax liability this year.
Under the FLSA's white collar exemptions rules, an exempt professional employee must meet all of the following requirements EXCEPT: A. having authority to hire and fire employees. B. having knowledge acquired through prolonged study. C. consistently exercising discretion and judgment. D. being paid a weekly salary of at least $455.00.
A. having authority to hire and fire employees.
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 managing employees' Forms W-4 the employer must: A. remind employees by December 1 to submit new Forms W-4 if their marital status or number of allowances has changed. B. file all new Forms W-4 with the IRS every year. C. advise employees about the number of allowances they can claim. D. verify that an employee's withholding allowances are accurate.
A. remind employees by December 1 to submit new Forms W-4 if their marital status or number of allowances has changed.
All of the following items are covered by the Fair Labor Standards Act EXCEPT:
A. setting the minimum age for work. B. setting child labor restrictions. C. defining the minimum interval between paydays.** D. setting the minimum wage.
An employee must complete a new Form W-4: A. when the employee's marital status changes from married to single. B. upon receiving overtime pay. C. when allowances increase. D. every other year.
A. when the employee's marital status changes from married to single.
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
Under the FLSA, the primary duties of an exempt computer professional employee include the following duties EXCEPT: A. application of systems analysis techniques. B. non-manual work related to management. C. design of computer systems. D. design of computer programs.
B. non-manual work related to management.
Under the FLSA, a nonexempt employee's regular rate of pay includes all of the following EXCEPT: A. shift premiums. B. reimbursed expenses. C. cost-of-living adjustments. D. nondiscretionary bonuses.
B. reimbursed expenses.
An employee is required to file a new Form W-4 in all the following situations EXCEPT: A. with the death of a dependent in the previous year. B. with the birth of twins. C. when a child is no longer claimed as a dependent. D. when a divorce is finalized.
B. with the birth of twins.
Under the FLSA, when determining whether a nonexempt employee is to be paid overtime, the employer uses the hours worked in a:
B. workweek.
Under the FLSA, an employee under the age of 20 can be paid the opportunity wage for a maximum of: A. 30 calendar days. B. 60 calendar days. C. 90 calendar days. D. 120 calendar days.
C. 90 calendar days.
Which of the following workers is an exempt employee? A. A purchasing assistant shelving received materials B. An assistant office manager who is paid a $400.00 weekly salary C. A production supervisor responsible for hiring, reviewing, and scheduling employees who is paid an $800.00 weekly salary D. A laboratory technician responsible for cleaning and maintaining the facilities
C. A production supervisor responsible for hiring, reviewing, and scheduling employees who is paid an $800.00 weekly salary
A tipped employee is paid $3.50 per hour. During the first week of 2016, the employee works 40 hours and receives $125.00 in tips. Under the FLSA, the tipped employee's total compensation must be a minimum of: A. $5.12 per hour. B. $2.13 per hour. C. $7.13 per hour. D. $7.25 per hour.
D. $7.25 per hour.
Under the FLSA, as of January 1, 2016, which of the following situations satisfies federal minimum wage requirements? A. A college student signs a contract agreeing to work for $6.65 per hour B. An employer covered under the FLSA pays a state minimum wage that is lower than the federal minimum wage C. A part-time employee in shipping paid $6.75 per hour D. An employee with ten years seniority receives the federal minimum wage
D. An employee with ten years seniority receives the federal minimum wage
What method may an employer use to pay shift differentials? A. Flat amount per hour only B. Percentage of gross per hour only C. Flat dollar amount only D. Any method the employer chooses
D. Any method the employer chooses
Which of the following regulations is governed by both the state and the federal governments? A. Final pay to a terminated employee B. Method of payment C. Breaks D. Exempt/nonexempt status
D. Exempt/nonexempt status
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.
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
When a nondiscretionary bonus is included in a nonexempt employee's regular rate of pay, the bonus is allocated to: A. the workweek the bonus is paid. B. the pay period the bonus is paid. C. all workweeks in the last 12 months. D. all workweeks during the period in which the bonus was earned
D. all workweeks during the period in which the bonus was earned
All of the following statements about the FLSA overtime requirements are true EXCEPT: A. the week's regular rate of pay must include shift premiums. B. a shift differential paid under a union contract is included in the regular rate of pay. C. a production bonus is included in the regular rate of pay. D. employers must pay overtime when employees work more than eight hours in a workday.
D. employers must pay overtime when employees work more than eight hours in a workday.
Employees can file an exempt Form W-4 when they: A. do not want taxes withheld this year. B. owed taxes last year and expect to owe taxes this year. C. expect to owe no 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.
Form SS-5 is used to:
D. obtain a new social security card or have a card reissued.
Employers have the following responsibilities for Form W-4 EXCEPT: A. withholding based on the marital status and number of allowances claimed. B. responding when the IRS requests an employee's W-4 form. C. ensuring that Form W-4 is complete. D. requesting new Forms W-4 from each employee each year.
D. requesting new Forms W-4 from each employee each year.
An employee must complete a new Form W-4: A. when the spouse is no longer employed. B. upon receiving a pay increase. C. upon receiving overtime pay. D. when allowances decrease.
D. when allowances decrease.
An employee's Form W-4 claiming single with 2 allowances expires: A. on the last day of each month. B. on February 15 of the next year. C. on the last day of each quarter. D. when the employee submits a new Form W-4.
D. when the employee submits a new Form W-4.
What taxes, if any, must be withheld from payments to an independent contractor?
No federal employment taxes are required to be withheld
A hospital employee works the following hours in a biweekly pay period. Under the FLSA 8/80 rule, calculate the employee's overtime hours. Sunday Monday Tuesday Wednesday Thursday Friday Saturday Week 1 0 8 8 8 10 12 0 Week 2 0 6 6 4 10 8 0
OT hours: 8 (any day worked over 8 hrs is eligible for OT
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.
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.
The Immigration Reform and Control Act of 1986:
makes it illegal for an employer to hire an unauthorized worker.
A 16-year-old employee works part-time during the summer. Under the FLSA, what is the maximum hours, if any, the employee can work during a workweek?
there is no limitation on the number of hours that can be worked during the week.
Under the FLSA, the minimum weekly salary an exempt executive can be paid is:
$455.00 weekly.
As of January 1, 2016, the federal minimum wage per hour is:
$7.25
f an employee lives in a state with a minimum wage of $8.00 and works in a state with a minimum wage of $7.75, what is the minimum wage that must be paid the employee?
$7.75
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
Under the FLSA, a workweek consists of how many hours?
168 hours. 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.
Which of the following workers is classified as a nonexempt employee?
A. An electrical engineer earning $1,200.00 a week, designing computer software systems B. A laboratory assistant responsible for duties which are reviewed by the supervisor** C. A production supervisor responsible for scheduling employees and handling employee complaints D. A salesperson soliciting orders at the clients' locations
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
A company with a Sunday-Saturday workweek has a nonexempt employee working 8 hours on Sunday, 12 hours on Monday, 9 hours on Tuesday, 8 hours on Wednesday, calls in sick on Thursday and receives 8 hours of sick pay for the week. Under the FLSA, calculate the overtime hours, if any, the employee must be paid. A. 0 B. 4 C. 5 D. 8
A. 0 OT is paid on hours physically worked, sick time isn't "physically worked" hours
Which of the following payments is a discretionary bonus?
A. Attendance B. Project C. Quality **D. Holiday**
A change in the company workweek may be necessary to: A. reduce paying overtime. B. meet changing business needs. C. comply with the calendar week. D. adjust pay schedules during holidays.
B. meet changing business needs.
An employee's spouse died on July 1. When must the employee file a new Form W-4 with the employer? A. By December 1 B. Before the first pay period of the next year C. By July 31 D. By the end of the quarter
B. Before the first pay period of the next year
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. If the employee does not provide a new Form W-4 before it expires on February 15, the employer will use the marital status and allowances found on the most recent valid W-4 form received before the form claiming exemption.
Under the FLSA for a Sunday to Saturday workweek, in which of the following situations must a nonexempt employee be paid an overtime premium? A. An employee worked five eight-hour shifts per week not including commute time of two hours a day. B. Over the last two weeks, a hospital employee under an 8/80 agreement worked 70 hours which included one 10-hour shift. C. A hospital employee under an 8/80 agreement worked five 6-hour shifts one week and six 8-hour shifts the next week. D. An employee worked 40 hours during the week, including ten hours on a holiday.
B. Over the last two weeks, a hospital employee under an 8/80 agreement worked 70 hours which included one 10-hour shift.
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.
Both state and federal governments regulate: A. frequency of pay. B. child labor. C. method of payment. D. timing of payment.
B. child labor.
A nondiscretionary bonus is a: A. gift provided at a holiday. B. contractual bonus paid based on the employee's production, efficiency or other measure of performance. C. non-contractual profit-sharing bonus. D. benefit plan provided to all employees.
B. contractual bonus paid based on the employee's production, efficiency or other measure of performance.
Under the FLSA's white collar exemptions rules, an exempt executive employee must meet all of the following requirements EXCEPT: A. being paid a weekly salary of at least $455.00. B. having an advanced type of knowledge in a field of science. C. directing the work of two or more full-time employees. D. managing a customarily recognized department.
B. having an advanced type of knowledge in a field of science
An employer's responsibilities with Form W-4 include: A. advising employees about the number of allowances they can claim. B. implementing the Form W-4 within the time allowed. C. notifying the IRS when an employee claims more than ten allowances. D. filing all new Forms W-4 with the IRS every year.
B. implementing the Form W-4 within the time allowed.
Under the FLSA, an exempt executive's primary duty must include: A. supervising two part-time employees. B. managing an enterprise, department, or subdivision. C. working under direction. D. working no more than 20% of the employee's time in nonexempt duties
B. managing an enterprise, department, or subdivision.
Which of the following workers is a nonexempt employee? A. An executive assistant paid a $900.00 salary per week exercising discretion when handling confidential tasks B. An outside salesperson making sales away from the employer's business location C. An assistant office manager paid a $400.00 salary per week whose primary duties do not include supervision D. An electrical engineer paid a $750.00 salary per week designing computer software systems who has no supervisory responsibilities
C. An assistant office manager paid a $400.00 salary per week whose primary duties do not include supervision
Under the FLSA, which of the following statements is true? A. An employer's workweek must coincide with the calendar week. B. Employers must pay overtime when employees work more than eight hours in a workday. C. An employer may establish one workweek for clerical employees and another for assembly workers. D. Employers must pay overtime for hours worked on federal holidays.
C. An employer may establish one workweek for clerical employees and another for assembly workers.
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 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 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.
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. Consult with the employee as to the number of allowances that should be claimed B. Tell the employee to claim single with zero allowances if confused C. Provide the employee with IRS publications on filing Form W-4 D. Complete a Form W-4 for the employee
C. Provide the employee with IRS publications on filing Form W-4
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.
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.
Under the FLSA, an exempt employee is exempt from: A. minimum wage only. B. all recordkeeping requirements. C. both minimum wage and overtime. D. overtime payments only.
C. both minimum wage and overtime.
Employers must remind employees to complete an amended Form W-4 if they have any changes in status: A. it is not the employer's responsibility. B. by December 31 of each year. C. by December 1 of each year. D. whenever notified of a change in marital status.
C. by December 1 of each year
An employee is required to file a new Form W-4 after the: A. itemized deductions increase. B. birth of a child. C. death of a dependent child in the previous year. D. adoption of a child.
C. death of a dependent child in the previous year.
An employee's primary job duties include managing a department with three full-time employees. Under the FLSA, the employee is an exempt: A. outside sales employee. B. administrative employee. C. executive employee. D. professional employee.
C. executive employee.
if a Form W-4 is incomplete, the employer must: A. tell the employee the form is incomplete. B. implement the form and ask the employee to complete another form. C. reject the form. D. ask the employee to provide the missing information on the form.
C. reject the form.
All of the following types of compensation are included in the calculation of a nonexempt employee's regular rate of pay EXCEPT: A. retroactive pay. B. nondiscretionary bonuses. C. stock options. D. cost-of-living adjustments.
C. stock options.
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.
Who has the responsibility to verify the eligibility to work in the U.S.? A. Employer B. U.S. Citizenship and Immigration Services C. SSA D. Employee
Employer
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).
For more information on this topic, refer to Module 1, Lesson 2. Related Information Which of the following workers is classified as an exempt employee?
For more information on this topic, refer to Module 1, Lesson 2. Related Information Which of the following workers is classified as an exempt employee? A. A purchasing assistant performing clerical functions B. A laboratory assistant responsible for duties which are reviewed by the supervisor C. A department manager supervising five full-time employees** D. A trainee soliciting orders for the company's products
A Taxpayer Identification Number and name reported on Form 1099-MISC can be checked by using the:
IRS's TIN Matching System
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.
Under the FLSA, which of the following types of pay is included in the calculation of the regular rate of pay?
Shift differential
8/80 rule
The FLSA contains an exemption to the workweek standard for hospitals and nursing homes that is designed to give them more flexibility in scheduling. The law allows such employers to use a 14-day period, rather than a workweek, for determining overtime compensation. Additionally, this extended period can be used for different groups of employees as the employer sees fit. The following three conditions must be met for the exemption to apply. There must be an agreement or understanding between the employer and the employees that the 14-day period will be used before work is performed, and there must be a record of the agreement. If the agreement or understanding is not in writing, the employer must keep special record of it. The employer must pay employees covered by the agreement or understanding at least 1½ times their regular rate of pay for all hours worked over eight in a day or 80 in the 14-day period, whichever would result in higher pay for the employee.
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
Under the FLSA, a nonexempt employee must be paid overtime for which of the following situations?
Under the FLSA, a nonexempt employee must be paid overtime for which of the following situations? A. An employee worked five eight-hour shifts in a week and commutes two hours a day. B. An employee worked 10 hours on Sunday, 10 hours on Monday, 10 hours on Tuesday and 10 hours on Wednesday. C. An employee worked 30 hours during the week, called in sick Thursday and Friday, and received 16 hours of sick pay for the week. D. An employee worked 10 hours on Monday, 8 hours on Tuesday, 12 hours on Wednesday, 8 hours on Friday and reported to work and remained for 4 hours on Saturday but no work was performed** **worked over 4o hours in the work week
In which situation would the employer set an employee's withholding status to single and zero allowances? A. When the employee has requested more federal taxes be withheld B. When a new employee has submitted an incomplete Form W-4 C. When an employee has not submitted a new Form W-4 at the beginning of the calendar year D. When the employer has received a tax levy on the employe
When a new employee has submitted an incomplete Form W-4
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
Which of the following statements regarding FLSA requirements is true?
Which of the following statements regarding FLSA requirements is true? A. Employers must pay overtime to employee's working on federal holidays. B. An employer's workweek must coincide with the calendar week. C. A holiday bonus, paid at the discretion of the employer, is excluded from the regular rate of pay.** D. An employee must be paid overtime when working more than eight hours in a workday
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.
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.
An employee first completes Form W-4 when:
first hired
An employee provides a new Form W-4 on August 15. The employer must retain the prior Form W-4 until:
four years after the last tax return was filed using the information on the Form W-4.
An employee who files an exempt Form W-4 in 2016 must have:
had no tax liability in 2015 and expect to have no tax liability in 2016.
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:
single with 0 allowances.
