Quizzes
The Age Discrimination in Employment Act provides protection to almost all workers over the age of:
40
Which law establishes the minimum wage? A) Fair Labor Standards Act B) Federal Income Tax Act C) Federal Insurance Contributions Act D) Federal Unemployment Tax Act
A) Fair Labor Standards Act (FLSA)
Under the federal income tax withholding law, which worker is not an employee? A) Partner who draws compensation for services rendered for the partnership B) General manager, age 66 C) Payroll clerk hired one week ago D) Governor of the state of Florida
A) Partner who draws compensation for services rendered for the partnership
What does the abbreviation SECA stand for? A) Self-Employment Contributions Act B) Self-Employed Contributions Act C) Self-Established Contributions Act D) Self-Entertainment Contributions Act
A) Self-Employment Contributions Act
For which payments is an employer required to withhold federal income taxes? A) Advances made to sales personnel for traveling expenses B) Tipped employee's monthly tips of $120 C) Deceased person's wages paid to the estate D) Memberships in social or country clubs
B) Tipped employee's monthly tips of $120
What information is included on Form I-9, a form completed by each employee? A) Contributions to individual retirement accounts B) Verification of employment eligibility C) Eligibility for unemployment benefits D) Eligibility for Medicare benefits
B) Verification of employment eligibility
Which payments are not taxable for FICA? A) Back pay awards B) Wage supplements to cover difference between employees' salaries and their military pay C) Severance pay D) Difference between employees' regular wages and the amount received for jury duty
B) Wage supplements to cover difference between employees' salaries and their military pay
For which kind of employment does FICA include coverage? A) Domestic service performed in a college sorority by a student B) Service performed by a 16-year-old child in the employ of the mother C) Babysitting service performed by a 35-year-old person who receives $40 in cash during the calendar quarter D) Federal government secretaries hired in 1990
D) Federal government secretaries hired in 1990
Under FICA, which of the following definitions describes an employee in an employee-employer relationship? A) A person who provides a service as an independent trade or business B) 1099 employee C) Employs workers D) Individual who performs services in a covered employment
D) Individual who performs services in a covered employment
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 what overtime hourly rate? A) One and one-half the higher of the two wage rates B) One and one-half the lower of the two wage rates C) One-half of the higher of the two wage rates D) None of the above
D) None of the above: they have three options
Which is not a wage subject to federal income tax withholding? A) Kitchen appliances given by manufacturer in lieu of cash wages B) Dismissal payment C) Vacation pay D Payments made under workers' compensation law
D) Payments made under workers' compensation law
The individual with the right to control what work will be done and how it will be done is the _________.
Employer
What type of employee is not entitled to overtime?
Exempt
All states have set their minimum wage to be the same as the federal government.
False
All taxable, non cash fringe benefits received during the year can only be added to an employee's taxable pay on the last payday of the year.
False
Domestics, which includes cooks, butlers and caretakers, are excluded from coverage under the FLSA individual employee coverage.
False
For state income tax purposes, all states treat 401(k) plan payroll deductions as nontaxable.
False
If an employee works in more than one state, the employer must pay a separate SUTA tax to each state in which an employee earns wages.
False
Noncash fringe benefits that employees are provided are treated as nontaxable income and thus are excluded from federal income tax withholding.
False
Not for profit corporations exempt from federal income taxes are employers under the federal income tax withholding law.
False
Retirement pay is taxable wages for FUTA purposes.
False
Statutory nonemployees are subject to income tax withholding.
False
The amount of federal income taxes to be withheld is determined after subtracting from the employee's gross wages and state taxes.
False
The amount of wages paid by employers to their employees during the calendar year determines the amount paid for Social Security and FUTA.
False
The highest paid executives of a firm are excluded from coverage under the Federal Insurance Contributions Act (FICA).
False
Under FICA, only cash tips of more than $100 in a month are defined as taxable wages.
False: Cash tips of more than $20 in a month are defined as taxable
Each state imposes an income tax on employees that is 2% of gross wages.
False: Each state can have their own income tax. 8 don't have any at all.
One of the tests to be met for the white-collar exemption for an executive is to be paid a salary of at least $1,000 per week.
False: They must be paid at least $684 per week
Which of the follow is not part of the Social Security program?
Federal Income Tax Law
What law funds the Social Security and Medicare programs?
Federal Insurance Contributions Act (FICA)
What does the acronym FUTA stand for?
Federal Unemployment Tax Act
What form should employers use to file their income and FICA taxes?
Form 941
Employers who fail to make their FICA Tax deposits are subject to a fine. What is the maximum percentage of the fine?
15%
Which of the following states has no personal income tax?
Texas These could also be options: Alaska, Florida, Nevada, South Dakota, Tennessee, Washington, Wyoming
Before any federal income taxes may be withheld, there must be, or must have been, an employer-employee relationship.
True
By the use of executive orders, the federal government has banned discrimination in employment on government contracts.
True
Employees must be given Form W-2 on or before Jan. 31 following the close of the calendar year.
True
Employees paid biweekly receive earnings every two weeks.
True
FICA and income taxes are always deposited together.
True
FUTA and SUTA coverages extend to U.S. citizens working abroad for American employers.
True
Form 941 is used by employers to make their quarterly return of FICA taxes and withheld income taxes.
True
Insurance agents paid solely on a commission basis are not considered employees under FUTA
True
Severance pay is considered taxable under FICA.
True
The FLSA requires that workers receive overtime pay for all hours worked in excess of 40 in a workweek.
True
The Fair Labor Standards Act is commonly known as the Federal Wage and Hour Law.
True
The Federal Old-Age and Survivors Trust Funds is also referred to as Social Security.
True
What is the term for when an employer doesn't pay an employee in accordance with statutory or contractual requirements?
Wage Theft
Which payments are taxable payments for federal unemployment tax? A) Christmas gifts, excluding noncash gifts of nominal value B) Caddie fees C) Courtesy discounts to employees and their families D) Workers' compensation payments
A) Christmas gifts, excluding noncash gifts of nominal value
When making FUTA payment, the employer must make the deposit by what time? A) End of the month after the quarter B) 15th of every month C) 10th of the month after the quarter D) End of the following quarter
A) End of the month after the quarter
How long must an employer retain an employees' Form W-4?
As long as it is in effect, followed by four years after the last filing date
What is the quarterly tax liability threshold for FUTA? A) $3,000 B) $500 C) $1,000 D) $1
B) $500
How is the OASDI taxable wage base defined? A) All amounts earned by an employee during a calendar year B) The maximum amount of wages paid during a calendar year that is subject to the OASDI tax C) All amounts paid to an employee during a calendar year D) All amounts either earned by or paid to an employee during a calendar year
B) The maximum amount of wages paid during a calendar year that is subject to the OASDI tax
When is overtime pay required under FLSA? A) Any hours worked in excess of 8 in one day B) All work on Sunday C) All hours worked in excess of 40 in a workweek D) All hours worked on Christmas
C) All hours worked in excess of 40 in a workweek
What is a stated percentage of revenue paid to an employee who transacts a piece of business that forms a service?
Commission
Which workers are exempt from all Fair Labor Standards Act requirements? A) Clerk-typists earning < $200 a week B) Taxicab drivers C) Motion picture theater employees D) None of the above
D) None of the above
Most employers use which system to make their FICA tax deposits?
Electronic Federal Tax Payment System (EFTPS)
How do you compute the total gross earnings of an employee?
regular earnings + overtime earnings
1. What is the minimum amount of tips per hour an employee should receive before an employer must increase their hourly rate of pay so that the hourly wage plus the equivalent hourly rate of tips received equals, at a minimum, $7.25 per hour?
$5.12
What is the current federal minimum wage?
$7.25
Which of the following is true according to FLSA? A) Employers use time cards to record the employees' time worked B) Employers use the continental time system to record all time worked by employees C) Employers keep records that show the hours each employee worked each workday and each workweek D) Employees sign each clock card
C) Employers keep records that show the hours each employee worked each workday and each workweek
If an employer has made timely deposits that pay the FUTA tax liability in full, the filing of Form 940 can be delayed until: A) December 31 B) October 15 C) February 10 D) March 31
C) February 10
Which is not a factor considered in determining coverage of interstate employees? A) Location of base of operations B) Place where work is localized C) Location of company's payroll department D) Location of employee's residence
C) Location of company's payroll department
Which statement correctly describes the withholding of federal income taxes and Social Security taxes on tips? A) Tips amounting to $10 or more in a calendar month must be reported by tipped employees to their employers. B) The withholding of federal income taxes on employees' reported tip income is made from the amount of tips reported by employees. C) Taxes on the net earnings of the self-employed. When employees report taxable tips in connection with employment in which they also receive regular wages, the amount of tax to be withheld on the tips is computed as if the tips were a supplemental wage payment. D) Employers do not withhold FICA taxes on the tipped employees' reported tip income.
C) Taxes on the net earnings of the self-employed. When employees report taxable tips in connection with employment in which they also receive regular wages, the amount of tax to be withheld on the tips is computed as if the tips were a supplemental wage payment.
Which is not considered a wage according to FICA? A) Year-end bonuses B) Standby payments C) Total cash tips of $15 received by a tipped employee in May D) Employees' Social Security taxes paid for by the employer
C) Total cash tips of $15 received by a tipped employee in May
Which of the following is true according to the Equal Pay Act? A) Employers must pay married males a higher wage rate then single females if both are performing equal work B) White-collar workers are exempt from its requirements C) Wage differentials based on a seniority system are allowed D) If there is an unlawful paw differential, employers may reduce the higher pay rate to equal the lower rate
C) Wage differentials based on a seniority system are allowed
Title VII of the Civil Rights Act is also referred to as which of the following? A) Wage and Hour Act B) Social Security Act C) Age Discrimination Act D) Equal Employment Opportunity Act
D) Equal Employment Opportunity Act (EEO)
What is the definition of an applicable lager employer according to the Affordable Care Act? A) 15 or more full-time employees during the previous year B) 1 or more full-time employees during the previous year C) 200 or more full-time employees during the previous year D) 50 or more full-time employees during the previous year
D) 50 or more full-time employees during the previous year
Under enterprise coverage, all employees of a business are covered by the Fair Labor Standards Act if the organization is which of the following? A) A nursing home B) A public agency C) A hospital D) All of the above
D) All of the above
Which non-cash fringe benefit is not subject to federal income tax withholding? A) Personal use of company car B) Sick pay C) Employer-paid membership to a country club D) All of the above are taxable
D) All of the above are taxable
What position is included under the definition of employees for FUTA purposes? A) Independent contractors B) Insurance agents paid solely on commission C) Student nurses D) Corporate Officer, such as CEO and CFO
D) Corporate Officer, such as CEO and CFO
Which cannot be included in a cafeteria plan? A) Group-term life insurance (first $50,000 of coverage) B) Dependent care assistance (first $5,000) C) Self-insured medical reimbursement plan D) Educational assistance
D) Educational assistance
What information does the E-Verify program check against existing Social Security information? A) Age of new hires B) Vesting status of all employees C) Health status of employees on medical leave D) Employment eligibility of new hires
D) Employment eligibility of new hires
How do you compute the amount of each tax to be withheld?
Multiply the employee's taxable wages of that pay period by the tax rate in effect at the time that the wages are received.
What is the rate of overtime?
One and one-half times the regular rate of pay
Which states are most commonly known to have local income taxes? (There are 3)
Pennsylvania, Ohio, Indiana
1. Select all that apply: Which of the following are forms of remuneration that may be included in an employee's regular rate of pay? (There are 3)
a. Cash b. Tips over $20 in a calendar month c. Fair market value of noncash compensation
Select all that apply: What needs to be determined in order to be covered by FICA? (There are 3)
a. If an individual is an employee, as defined by the common-law relationship of employer and employee b. If the service rendered is employment, as defined by FICA tax law c. If the compensation received is taxable wages, as defined by FICA tax law
Select all that apply: Which employee groups are excluded from the FUTA criteria? (There are 3)
a. Independent contractors b. Casual laborers c. Insurance agents paid solely on commission
What are some examples of compensation that are excluded from FICA taxes? (There are 3)
a. Meals and lodging for employer's convenience b. Payments after the first six months of sick pay c. Employer contribution to retirement plan
1. Select all that apply: Which of the following are the main types of state income tax returns, statements or reports? (There are 3)
a. Periodic withholding returns b. Annual statements c. Reconciliation returns
Select all that apply: What are some recommended options for timekeeping? (There are 3)
a. Timecard b. Computerize time and attendance recording systems c. Time sheet
Select all that apply: Which of the following examples of employee compensation are subject to withholding? (There are 3)
a. Vacation allowances b. Bonuses c. Tips
