Payroll Chapter 2

Hall receives 18.5 cents for every unit produced. Hall produces 575 units in an 8-hour workday. Hall's daily wages are________________

$106.38 (575 x $0.185)

Under the continental system of recording time, 9:20 pm is recorded as:

2120

A stated percentage of revenue paid an employee who transacts a piece of business or performs a service is called:

A commission

Abel works a 37 1/2 hour week at $10.75 an hour. Overtime hours are paid at 1 1/2 times the regular rate.

Abel's regular weekly earnings are $403.13 (37 1/2 x $10.75)

Under the FLSA, overtime pay is required for

All hours worked in excess of 40 in a workweek

The Wage and Hour Division allows the practice of recording an employee's starting and stopping time to: a. the nearest 5 mins b. the nearest 10th of an hour c. the nearest quarter of an hr d. all of the above e. none of the above

All of the above

Under enterprise coverage, all employees of a business are covered by the FLSA if the organization is: a. a nursing home b. a public agency c. a hospital d. all of the above

All of the above

Under individual employee coverage, the worker is covered by the FLSA if: a. the worker produces goods for interstate commerce. b. the worker is a housekeeper in a private home c. the domestic receives cash wages of at least $1,800 from the employer in the calendar year. d. all of the above

All of the above

If an employer is unable to obtain a certificate of age or work permit for a minor employee, the employer may rely upon what document as evidence for age?

Baptism record

The FLSA requires that

Employers keep records that show the hours each employee worked each workday and each workweek

"Engaged to wait" and "waiting to be engaged" are both considered work time.

False

The FLSA sets no limits upon the number of hours that a 15-year old person may work so long as the overtime pay provisions are met.

False

Under no conditions may children under age 16 be employed in food service establishments.

False

Under the FLSA enterprise coverage test, hospitals and nursing homes are only covered if their annual charges for services are at least $500,000.

False

Under the FLSA, severance pay is excluded from the definition of wages.

False

When employees spend time changing clothes on the employer's premises, this time must be counted as part of their principal activities for which they are always fully compensated.

False

Employers may pay nonexempt employees who work fluctuating schedules a fixed salary. In these cases, the extra pay is: a. calculated at a time and one-half rate b. calculated at a double time rate c. calculated at the regular rate of pay d. unpaid e. none of the above

None of the above

If an employee works two jobs at two different wage rates for the same employer during the same pay week, any overtime pay must be calculated by using an overtime hourly rate of: a. one and one-half the higher of the two wage rates b. one and one-half of the lowest of the two wage rates c. one-half of the higher of the two wage rates d. one-half o the two rates combined e. none of the above

None of the above

In January 2015, the minimum hourly wage was: a. $9.35 b. $7.15 c. $10.85 d. $8.15 e. none of the above

None of the above

The tips received by a tipped employee are less than $5.12 of the minimum hourly ti[ credit rate. The maxmimum permissible tip credit is:

The amount of tips actually received by the employee

A college may employ its own full-time students at 85% of the minimum wage.

True

An employer can credit up to $5.12 of a tipped employee's minimum wage as coming form the tips received by that employee.

True

Bona fide meal periods when the employee is completely relieved from duty are not considered working time.

True

Employees paid biweekly receive their remuneration every two weeks.

True

Employees paid by the hour without a guarantee of weekly minimum salary do not qualify for the salary test for white-collar workers.

True

Employees who are receiving remedial education may work up to 10 hours overtime each week without receiving overtime pay.

True

Employers may adopt the practice of recording an employee's starting and stopping time to the nearest quarter of an hour.

True

Institutions of higher education are extended coverage under FLSA without regard to their annual sales volume.

True

Nondiscretionary bonuses are part of the determination of regular rate of pay.

True

One of the tests to be met for the white-collar exemption for an executive is to be paid a salary of at least $455 per week.

True

Payments made to a bona fide profit sharing plan that meets the standards set by the secretary of labor's regulations are not deemed wages in determining the regular rate of pay.

True

Provided employees can use the on-call time for their own purposes, this time is not compensable.

True

Public safety employees of a state can be granted compensatory time off in lieu of overtime compensation.

True

The FLSA requires that workers receive overtime pay for all hours worked in excess of 40 in a workweek.

True

To calculate the overtime pay rate for a commissioned worker, divide the total commission by the hours worked, and then take one-half of the resulting rate of pay.

True

Under the continental system of recording time, 9:00 am is recorded as 900 while 9:00 pm is recorded as 2100.

True

Under the piece-rate-system, workers are paid according to their output.

True

Under the FLSA, regular rate of pay does not include

Vacation pay

Under the Equal Pay Act

Wage differentials based on a seniority system are allowed.

To determine a pieceworker's regular hourly rate for one week:

divide the total weekly earnings from piece rates and all other sources by the hours worked in the week.

Rest periods and coffee breaks may be required by all of the following except: a. a union contract b. a state legislation c. a municipal legislations d. the FLSA e. none of the above

the FLSA

Training sessions are counted as working time when the following condition is met:

the employer requires the employee's attendance

Gates is paid a semimonthly salary of $900. Overtime is paid for hours beyond 40 in each workweek. One week, Gates works 6 3/4 hours overtime. Gates' pay for this semimonthly pay period is_________

$1,005.10 (24 x $900 = $21,600/52 = $415.38/40 = $10.38 x 1.5 = $15.57 x 6 3/4 = $105.10 + $900)

Kenneth Anderson works two separate jobs for Mesa Company. During the week, Job A consisted of 38 hours at $20 per hour; Job B involved 15 hours at $14 per hour. If Mesa uses the average rate basis for calculating overtime, Anderson's pay for that week is___________-

$1,088.95 [(38 x $20) + (15 x $14) = $970/53 = $18.30 x 0.5 = $9.15 x 13 = $118.95 + $970]

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-hr workweek is_____________

$172.76 (28 x $6.17)

Carla Maloney is a waitress who regularly receives $80 each week in tips and works 40 hours each week. The minimum gross weekly pay, excluding tips, that the restaurant could pay Maloney without violating the FLSA is________

$210.00 [(40 x $7.25) - $80]

Bakker is paid an hourly rate of $10.65. For 130 minutes on a certain job, Bakker is paid______________

$23.08 ($10.65 x 130/60)

Kerr receives an annual $25,700 base salary for working the territory in Arizona. A quota of $900,000 in sales has been set for that state. Kerr receives an 8% commission on all sales in excess of $900,000. This year, the sales are $965,000. The total earnings due Kerr this year are__________

$30,900 ($965,000 = $900,000 = $65,000 x 0.08 = $5,200 + $25,700)

Ides receives 16 cents for every unit produced. Ides produces 2,976 pieces in a 43-hour workweek. For overtime, Ides is paid a sum equal to one-half the regular hourly pay rate multiplied by the number of overtime hours. Ides' total piecework and overtime earnings are_____________

$492.78 (2,976 x $0.16 = $476.16/43 = $11.07 x 0.5 - $5.54 x 3 = $16.62 + $478.16)

Kurtz is a newly hired exempt employee who earns an annual salary of $67,600. Since he started work on Thursday (5-day week ends on Friday), his pay for the first week would be _________--

$520.00 [($67,600/52) x 2/5]

Gorman is paid $10.50 per hour for a 35-hour workweek. This past week, he worked an extra 10 hours on a job at a pay rate of $13.00 per hour. If he is only paid overtime for hours over 40 and the employer uses the average rate method, his total earnings for the 45 hours of work was ____________.

$525.15 [(35 x $10.50) = $497.50/45 = $11.06 x 0.5 = ($5.53 x 5) + $497.50]

Annette Henri is paid an hourly wage of $10.90 for a 32-hr work week of 4 days, 8 hours daily. For any work on the fifth day and on Saturdays, she is paid one and one-half times her regular hourly rate. During a certain week, in addition to her regular 32 hours, Henri worked 6 hours on the fifth day and 5 hours on Saturday. For this work week, Henri's total earnings are__________________

$528.65 [(32 x $10.90) + (11 x $10.90 x 1.5)]

Kelli England earns $12.30 per hour and has earned a production bonus this week of $37.10. If England worked 44 hours this week, her gross pay is_______________

$604.58 (44 x $12.30 = $541.20 + $37.10 = $578.30/44 = $13.14 x 0.5 = $6.57 x 4 = $26.28 + $578.30)

Jack Kenston works a 40 hr week with overtime paid at 1 1/2 times his regular rate of pay at $14.88. This week he worked 42 hours, which resulted in a gross pay of ____________

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

Elder is paid a monthly salary of $2,250. Overtime is paid for hours beyond 40 in each workweek. One week, Elder works 7 hours overtime. Elder's gross pay for the week is_________

$655.52 [(12 x $2,250)/52= $519.23/40 = $12.98] [$519.23 + (7 x $12.98 x 1.5]=655.52

Jose Cruz earns $2,275 each month and works 37.5 hours each week. His employer pays him overtime (for hours beyond 37.5) and uses the overtime premium approach. Cruz's overtime premium hourly rate is________

$7.00 ($2,275 x 12 = $27,300 / 52 = $525 / 37.5 = $14.00 x 0..5)

Stacy Fervour 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 is her employer uses the special half-rate (based on total hours worked) for overtime pay is _________

$724.34 ( $680/46 = $14.78 x 1/2 = $7.39 x 6 = $44.34 + $680)

Linda Corson is paid $650. Corson works a 32 hr week. For overtime, she receives extra pay at the regular hourly rate ups o 40 hours. For any hours beyond 40 during the workweek, she receives time and one-half. During one biweekly pay period, she worked 17 hours overtime, Only 3 hours of the overtime were beyond 40 hours in any one week. Corson's gross earnings for the biweekly pay period are__________

$837.96 [$650 + (14 x $10.16[$650/64]) + (3 x $10.16 x 1.50]

Casey Klemons' agrement (BELO plan) with his employer provides for a pay rate of $16.50 per hour with a maximum of 50 hours. How much would Klemons be paid for a week in which he worked 46 hours?

$907.50 [50 x $16.50 = $825] [ 10 x 0.5 x $16.50 = $82.50 + $825]

Fall is paid a biweekly salary of $937.50. Overtime is paid for hours beyond 40 in each workweek. One week, Fall works 3 hours overtime. Fall's pay for this biweekly pay period is ____________

$990.24 ($937.50/80 = $11.72 x 1.5 = $17.58 x 3 = $52.74 + $937.50)

A retail shop may employ a full-time student at $5.00 per hour.

False

All employers can grant compensatory time off to employees in place of overtime pay.

False

All major cities have enacted ordinances establishing a so-called "living wage" at $10.25 per hour.

False

Although commissions are considered payments for hours workers, they are excluded when determining the regular hourly rate.

False

Domestics are excluded from coverage under the FLSA individual employee coverage.

False

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

False

Hourly employees who take work home without the permission of the employer do not have to be paid for the work done at home.

False

If a business does not meet the enterprise coverage test, none of its workers qualify for individual employee coverage.

False

In May 2015 workers who receive the minimum hourly wage are paid $6.10 an hour.

False

In converting semimonthly wage rates to hourly rates, divide the semimonthly rate by 4 to arrive at the weekly rate.

False

Interns in the for-profit sector are exempt from the minimum wage and overtime requirements of the FLSA

False

The Equal Pay Act stipulates that there cannot be any wage differentials between the sexes.

False

The FLSA contains detailed specifications of the methods that employers must follow in keeping time records.

False

The FLSA defines a tipped employee as one who regularly receives tips of more than $20 a month.

False

The FLSA requires that employees be given at least two 15-minute rest periods each weekday.

False

The FLSA requires that employees be given the day off on all Monday Holidays or be paid time and one-half for those Mondays.

False

The FLSA requires that workers receive overtime pay of twice the employees' regular hourly rate for hours worked on Sunday.

False

Which of the following is not required by the FLSA? a. extra pay for work on holidays b. two weeks' vacation pay after one year of service c. restriction on hours worked by a 17-year old d. all of the above is required e. none of the above is required

None of the above

Workers exempt from all of the FLSA requirements include a. employees paid by the hour b. clerk-typists earning less than a $200 a week. c. taxicab drivers d. motion picture theater employees e. none of the above

None of the above

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

Principal Activities