Payroll CH3
Nonexempt employees who work more than the FLSA maximum hours per week must be compensated at a rate of _____ times the regular hourly rate.
1.5
Under the 8 and 80 rule, what is the number of consecutive workdays considered?
14
Employees who are over age _____ are not subject to a maximum number of hours worked per week.
16
An employee must be paid different rates when working in how many separate functions?
2
The standard FLSA-stipulated overtime includes hours worked in excess of _____ during a 7-day, 168-hour week.
40
An employee who earns $11.50 per hour works 38.5 hours during a weekly period. What is the employee's gross pay?
442.75 38.5*11.5
A piece-rate employee who completes 150 pieces at a rate of $3.50 per piece has a gross pay of
525
For the hundredth hour method, you divide the number of minutes worked by
60
In which of the following situations would hourly wage calculations be appropriate?
A nonexempt salaried worker who works more than 40 hours during a weekly period. A nonexempt employee who works 75 hours during a biweekly pay period.
The payroll register contains which of the following?
A separate row for each employee.
What should be obtained from an employee who requests a draw?
A written, signed authorization specifying repayment terms
An employee with a ____ pay method may perform two or more different jobs for the same employer with different ____ bases.
Combination & Compensation
If the employee is not restricted to performing on-call time on the employer's premises, which of the following is true?
Compensation is not required
What is the standard work week for salaried nonexempt workers?
Depends on the hiring agreement
Which of the following is true about employee draw?
Employees are expected to generate enough sales to cover draws. The employee may draw against future earnings (which will be reduced) if sales goals are not met.
Employees in highly technical or qualification-driven positions are generally classified as _____from FLSA provisions.
Exempt
For employees who work in more than one separate function within a company, the payroll accountant should refer to the ____ overtime calculator advisor published by the U.S. Department of Labor.
FLSA
True or false: Outside sales representatives are subject to FLSA minimum wage provisions
False
Which of the following jobs may compensate employees on a salary plus commission basis?
Farm worker, retail sales, district manager
Retired employees who receive pension payments are subject to
Federal income tax
Which of the following conditions exempt an employer from paying the federal minimum wage?
Firms with less than $500,000 of annual business volume
Travel Time
For employees who drive or commute at the employer's convenience
Which of the following are columns used in the payroll register?
Gross pay, marital status & Retirement plan deductions
FLSA uses the Eight and Eighty (8 and 80) rule for overtime pay for which of the following classifications of workers?
Hospitals and Residential care facilities
Which of the following is true about an ISO?
It is a pay method that allows employee to receive company stock in lieu of salary.
When an employee serves as a jury member for court cases, how much is the employer required to pay them?
It is at the discretion of the employer
Which of the following is true of piece-rate pay?
It is more difficult to track and to administer than other types of pay. It encourages employee production.
Which of the following types of workers is specifically allowed by section 13(a)(17) of the Fair Labor Standards Act to be classified as a salaried exempt employee?
Network Administrator
Among sales consultants, ____ ____ ____ are excluded from minimum wage requirements under the Fair Labor Standards Act.
Outside, sales & representatives
When an employee works more than one job classification, the payroll accountant is notified to ensure accurate ____ ,____ , and ______.
Pay, classification & reporting
Who is responsible for rounding employee time consistently?
Payroll Accountant
The ____ ____is the internal document used for accurate preparation of payroll.
Payroll register
Rounding an employee's hours to the nearest 15-minute interval is called the
Quarter-hour system
Sleep Time
Required time for an employee who works 24-hour shifts
According to the FLSA, which of the following is true about compensatory time?
Salaried exempt workers must receive comp time equal to 1.5 times the overtime hours.
Which types of employees are protected by Fair Labor Standards Act minimum wage provisions?
Salaried nonexempt & Hourly Nonexempt
Which of the following are examples of combination pay methods?
Salary plus commission & Hourly Plus piece rate
In a payroll draw situation, the employee may draw _____ against ____ ____.
Salary, future, commissions
What is an important consideration regarding the minimum wage provision of the Fair Labor Standards Act?
Separate tiers
Wait Time
Staying at a site for a defined time for the employer's benefit
In which of the following situations may an employee receive less than the FLSA minimum wage?
Student learners in vocational education programs. An employee below age 20 during the first 90 days of employment.
According to the FLSA, what are methods for receiving retroactive pay (select all that apply)?
The Department of Labor's Wage and Hour Division may provide supervision for the payment. The employee may sue the employer for the back pay plus damages, court costs, and lawyer's fees.
Which of the following are potential issues with payroll draws?
The draw may affect legal salary deductions like garnishments. Correct amounts of payroll taxes may not be collected.
What is true about on-call time at the employer's premises?
The number of on-call hours must be added to the employee's gross pay. The employee's freedom is limited.
Why is the tipped minimum wage lower than the non-tipped minimum wage?
Tipped workers may earn tips from patrons.
What is the purpose of a payroll draw?
To allow certain employees to draw against future earnings.
What are purposes of the salary plus commission pay method? (Check all that apply).
To meet minimum wage requirements. To recognize employee contribution to sales.
Which of the following is true about travel time?
Travel to and from a single office is not compensable
True or false: Employers should notify employees in advance if the employee's tip earnings will be included in their overtime pay calculation.
True
True or false: Hourly workers may be skilled or unskilled employees.
True
Full-time students may receive less than the FLSA minimum wage if they work for which type of employer?
University
IRS guidelines stipulate that ____ ____ prior to the employee's death must accurately reflect the work performed.
Wages earned
The payroll register is:
a tool to accurately prepare payroll
The payroll register is used by accountants to ensure the ____ ____ of employee compensation.
accurate tracking
Nonqualified deferred compensation is taxed
at the time it is earned
An employer with a disabled employee must obtain a ____ to pay ____ than the minimum wage.
certificate & lower
Computation of the pay for fractions of hours worked depends on
company policy
Many job types have a combination pay method because it boosts ____ ____ and maintains ____ ____.
employee productivity & FLSA compliance
The purpose of an ISO is to defer taxes and salary liabilities for the _____ and ____ .
employer & employee
Pension payments are subject to ____ ____ tax but not ____ tax.
federal income & FICA
Unless specifically designated by a ____ ____, private sector employers may not offer compensatory time.
firm's policy
During jury duty, some employers pay the employee ____ compensation, while others pay a(n) ____ amount.
full & alternate
Employees whose positions are ____, ____or ____ ____ may find their job classified as salaried.
highly technical or qualification driven
An ____ _____ ____ is a payroll option that allows an employee to report a small base salary for tax purposes.
incentive stock options
Nonqualified deferred compensation refers to pay earned in one period and received in a ____ ____ .
later period
Wages for tipped employees are lower than those for _____ employees.
nontipped
Wages for tipped employees are lower than those for _____employees.
nontipped
Non-exempt employee pay is based on the ____of ____ worked.
numbers, hours
Employers may consider the amount earned in tips by employees when computing _____ pay.
overtime
The hundredth-hour system is similar to the quarter-hour system because it calculates ____ hours of work performed.
partial
Overtime pay for piece-rate employees is based on the number of ____and the total number of productive ____worked.
pieces & hours
The two categories of hourly wages are ____and ____.
regular and overtime
Situations exist in which nonexempt employees must be compensated at more than the ____ ____premium.
standard overtime
If the wages for a deceased employee are paid in a check, it must be made to out to
the employee's estate
The difference between the tipped employee minimum wage and the federal minimum wage is known as the _____ _______.
tip credit
