chapter 2: Computing Wages & Salaries.
True
In Miami, Florida the living wage rate for city employees or those who work for companies with city contracts that exceed $100,000, if employer provide health Insurance is $12.63 per hour. The wage rate if employer does not provide health insurance is $15.52. True or False
d. All of these choices are correct.
In determining the working time of employee, the principal activities of employee include: a. Those that are indispensable to the performance of productive work b. Those they must perform, including any work of consequence performed for the employer c. Those that are an integral part of a principle activity. d. All of these choices are correct.
($20 x 38hrs = $760) + ($14 x 15hrs = $210), $760 + $210 = $970 $970/53 = $18.30 regular hourly rate $18.30 x .5 = $9.15 OT rate 13 hrs. OT x $9.15 = $118.95
False 20. 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 $118.95. Round your final answer to the nearest cent.
True
1. 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 False
True
1. Under the FLSA, wages include sales commissions and bonuses paid for employee performance. True or False.
$ 200.00
10. Cecil Green is a waiter who regularly receives $90 each week in tips and works 40 hours each week. Green's employer claims the maximum weekly tip credit that is allowed in this case. The gross weekly pay, excluding tips, that the restaurant should pay Green without violating the FLSA is (40 × $7.25 = $290.00 - $90.00) ....................................... $ 200.00
b. Baptism record
10. If an employer is unable to obtain a certificate of age or a work permit for a minor employee, the employer may rely upon what document as evidence of age? a. Minor employee's statement as to date of birth b. Baptism record c. High school enrollment form showing date of birth d. Mother's statement as to date of birth e. None of these choices are correct.
True
10. Wage differentials between sexes would be allowed if the different wage rates were based on a seniority system. T/F
False
11. Blue-collar workers do not have to be paid for overtime if they have earned more than $90,000 for the year. T/F
Corson's gross earnings for the biweekly pay period are $837.96 Firs figure out hourly rate: $650/64 = $10.16 64 is from 32 x 2, first work week is 32 hours, second work week (biweekly) work week is another 32 hours. [$650 + (14 x 10.16) + (3 x 10.16 x 1.5)] = $837.96
11. Every two weeks, Linda Corson is paid $650. Corson works a 32-hour week. For overtime, she receives extra pay at the regular hourly rate up to 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. Round your answer to the nearest cent. Corson's gross earnings for the biweekly pay period are $_________
$990.24 937.50 x 26 = $ 24,375 annually earnings $24,375 /52 = $468.75 weekly earnings $468.75/40 hours =$11.72 regular hourly rate $11.72 x 1.5 = $17.58 OT rate 3 hours OT x 1.5 = $52.74 $937.50 + $52.74 = $990.24 biweekly + OT
12. 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 $_______ . Round your answer to the nearest cent.
False
12. The FLSA requires employees to be paid for a rest period of 30 minutes or less. ....T/F
False
13. All major cities have enacted ordinances establishing a so-called "living wage" at $10.25 per hour. True False
True
13. Employers are not required to pay an employee for hours not worked because of illness. .............. T/F
Method (2): ($10.50 x 35 = $367.50) +($13 x 10 = $130) , $367.50 + $130 = $497.50 $497.50/45 = $11.50 regular hourly rate $11.50 x .5 = $5.53 OT rate 5 x $5.53 =$27.65 OT earnings $497.50 + $27.65 = $525.15 earning for 45 hours worked.
14. 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 were $525.15. Round your final answer to the nearest cent.
False
14. Time spent in training sessions is never counted as working time. ....................... T/F
$680/46 = $14.78 regular hourly rate $14.78 x .5 = $7.39 OT rate 6 x $7.39 = $44.34 OT earnings $680 + $44.34 = $724.34 gross pay.
15. 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. Round your final answer to the nearest cent.
False
15. Violators of the minimum wage provisions of the FLSA must reimburse the offended employees at the rate of $15.00 per hour for the hours paid at the hourly rate below the minimum. ........... T/F
False
16. A worker who is regularly paid on a biweekly basis should receive 24 paychecks each year. ........ T/F
$10.90 x 32hrs = $348.80 $10.90 x 1.5 = $16.35 OT rate 11 hours OT (6 hours + 5 hours0 11 x $16.35 = $179.85 $348.80 + $179.85 = $528.65
16. Annette Henri is paid an hourly wage of $10.90 for a 32-hour workweek 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 workweek, Henri's total earnings are $528.65. Round your answer to the nearest cent.
$210
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
False
17. In order to qualify for the "white-collar" exemption as outside salespeople, the employees must be paid a minimum salary of at least $1,000/week. ............. T/F
True
18. Commissions are considered to be payments for hours worked and must be included in determining the regular hourly rate. ....... T/F
b. the amount of tips actually received by the employee.
18. The tips received by a tipped employee are less than $5.12 of the minimum hourly tip credit rate. The maximum permissible tip credit is: a. 50% of the employee's minimum wage. b. the amount of tips actually received by the employee. c. 45% of the employee's minimum wage. d. $5.12 an hour. e. $30 a month.
False
19. If a business does not meet the enterprise coverage test, none of its workers qualify for individual employee coverage. True False
True
19. In calculating the overtime premium pay, the overtime hours are multiplied by one-half the regular hourly rate. .............T/F
23.73
2. Charles Rollins earns $2,400 each month and works 35 hours each week. (a) His hourly rate is [($2,400 × 12) ÷ 52 ÷ 35] ................................................................. $ 15.82 (b) His overtime rate is ($15.82 × 1.5) ............................................................................... $ 23.73
False
2. Direct care workers employed by a family or individual are not covered if only performing fellowship and protection services. Direct care workers must always be paid overtime compensation in addition to the minimum wage. True or False.
True
2. The FLSA requires that workers receive overtime pay for all hours worked in excess of 40 in a workweek. True False
True
2. Under the FLSA, "mom and pop stores" are excluded from enterprise coverage. ........................... T/F
True
20. A nondiscretionary bonus is one that is either known in advance or is set up as an inducement to achieve certain goals. ............ T/F
True
3. A son working for his parents in a family-owned business is not covered under the FLSA. True or False
False
3. If a small amount of tips is turned over to the employer, the tip credit can still be applied against the minimum wage. F/T
$1,123.20
3. Ken Gorman is paid $810.00 for a 37½-hour workweek. Overtime is paid at time and one-half for hours beyond 40 in each workweek. One week, Gorman works 48 hours. If he is paid his regular hourly rate for the first 40 hours, Gorman's gross pay is $810 ÷ 37½ = $21.60/hour; [$810 + (2.5 × $21.60) + (8 × $32.40)] ................................. $1,123.20
False
3. The FLSA contains detailed specifications of the methods that employers must follow in keeping time records. True False
True
4. Bona fide meal periods when the employee is completely relieved from duty are not considered working time. True False
True
4. Employers must pay employees for working overtime hours even if the overtime was not authorized or approved. T/F
False
4. Individual employee coverage is not affected by the work of fellow employees. Individual employee coverage under the FLSA applies only if fellow employees are engaged in similar activities. True or False
$652.52
4. Susan Tate receives an hourly wage of $11.25 for a 40-hour week of 5 days, 8 hours daily. For Saturday work, she is paid 1½ times the regular rate. For Sunday work, she is paid 2 times the regular rate. One week, she worked 50 hours—4 hours of which were on Saturday and 6 hours on Sunday. Her total earnings for the week are [(40 × $11.25)+ (4 × $16.88) + (6 × $22.50)] ........................................................................................... $652.52 Note: $11.25 x 1.15 = $16.88 $11.25 x 2 = $22.50
True
5. A college may pay its own full-time students less than the minimum wage. True or False
Fasle
5. Employees who regularly work less than 20 hours a week are not covered by the minimum wage requirements. T/F
$98,660
5. Ronald Dowd receives an annual base salary of $87,500 as a salesman in the Southern region, which has an annual sales quota of $450,000. For all sales over this quota, Dowd receives a commission of 4½ percent. For the current year, sales in the Southern region total $698,000. The amount of salary and commissions due to Dowd is [$87,500 + ($248,000 × 0.045)] ............................................................................... $98,660
False
5. Under the FLSA enterprise coverage test, hospitals and nursing homes are only covered if their annual charges for services are at least $500,000. True False
True
6. A full-time student may be employed by a retail shop at 85 percent of the minimum wage. F/T
$ 1,672.00
6. Charles Geiger is a salaried employee who works fluctuating workweeks. He is paid $1,520 per workweek. This week, he worked 50 hours. Determine Geiger's total gross pay if his employer uses the special half-rate (based on total hours worked) for overtime pay. ($1,520 ÷ 50 = $30.40 × 0.5 = $15.20 × 10 = $152.00 + $1,520) .............. $ 1,672.00
e. None of these choices are correct.
6. In January 2018, the minimum hourly wage was: a. $8.15. b. $10.00. c. $12.15. d. $9.35. e. None of these choices are correct.
True
7. An employer can credit up to $5.12 of a tipped employee's minimum wage as coming from the tips received by that employee. True False
False
7. An employer may only credit up to half of a tipped employee's minimum wage as coming from the tips actually received. T/F
$579.60
7. Ron Morris earns $11.80 per hour and worked 44 hours this week. In addition, he earned a production bonus of $35.20 for the week. His gross pay for the week is (44 × $11.80 = $519.20 + $35.20 = $554.40 ÷ 44 = $12.60 × 0.5 = $6.30 × 4 = $25.20 + $554.40) ................. $579.60
True
If the overtime premium is used, overtime premium pay is calculated by multiplying the overtime hours by and overtime premium rate of one-half of the of the regular rate. True or False
False
1. An enterprise is covered under the FLSA if there are at least two employees engaged in interstate commerce and if the enterprise has a gross annual sales volume of at least $100,000. .... T/F
.. $583.15
1. Diane Duke works a standard 40-hour workweek. She is paid time and one-half for all hours over 40 in each workweek. Her regular hourly wage rate is $10.90. One week, Duke worked 49 hours. Her total gross earnings for the week are [(40 × $10.90) + (9 × $10.90 × 1.5)] ........................................................................................................ $583.15
$598.50
8. Bob Knox is paid on a piece-rate basis. He is paid 30 cents for each unit he produces. For overtime work, he receives in addition to his piece-rate earnings a sum equal to one-half the regular hourly pay multiplied by the hours worked in excess of 40 in a week. During a particular week, Knox worked 45 hours and produced 1,890 units. His total earnings for the week are (1,890 × $0.30 = $567.00 ÷ 45 = $12.60 × 0.5 = $6.30 × 5 = $31.50 + $567.00) ............................. $598.50
False
8. 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. True False
True
8. There are some states that have a higher minimum wage rate than the federal minimum. T/F
$ 903.10
9. Carson Morris worked two separate jobs for Horwath Company during the week. Job A consisted of 36 hours at $16.00 per hour; Job B entailed 14 hours at $17.50 per hour. Determine his gross pay for that week if the employer uses the average rate basis for the overtime pay. [(36 × $16.00) + (14 × $17.50) = $821 ÷ 50 = $16.42 × 0.5 = $8.21 × 10 = $82.10 + $821.00] .............. $ 903.10
False
9. The FLSA provides for the payment of "double time" for any hours worked on holidays. ............. T/F
d. 2120.
9. Under the continental system of recording time, 9:20 p.m. is recorded as: a. 2220. b. 9:20P. c. P2120. d. 2120. e. None of these choices are correct.
True
Commission are considered to be payment for hours worked and must be included in determining the regular hourly rate. True or False
Matching Quiz Answers: Biweekly - Remuneration paid every two weeks Commission - Payment to employee based on a stated percentage of revenue Statutory nonemployee - Employer has the right to control both what work will be done and how it will be done Common-law relationship -Licensed real estate agent Gross earnings - Regular earnings plus overtime earnings Individual employee coverage - Employee engages in interstate commerce or produces goods for such commerce Overtime premium - One-half the regular hourly rate Statutory employee - Full-time life insurance agents Piece-rate system - Pay system based on an amount paid to the employee per units produced Semimonthly - Remuneration paid twice a month
Matching Quiz Answers: Biweekly - Remuneration paid every two weeks Commission - Payment to employee based on a stated percentage of revenue Statutory nonemployee - Employer has the right to control both what work will be done and how it will be done Common-law relationship -Licensed real estate agent Gross earnings - Regular earnings plus overtime earnings Individual employee coverage - Employee engages in interstate commerce or produces goods for such commerce Overtime premium - One-half the regular hourly rate Statutory employee - Full-time life insurance agents Piece-rate system - Pay system based on an amount paid to the employee per units produced Semimonthly - Remuneration paid twice a month
True
The regular rate of pay for a salaried nonexempt employee is found by dividing the number of hours expected to be worked each week into weekly salary. True or False.