FPC Chapter 1 Quiz

Paryoll's chief product -- the payrcheck or the pay statement -- must be:

What taxes, if any, must be withheld from an employee's pay?

What taxes, if any, must be withheld from an independent contractor's pay who provides a TIN?

Who has the responsibility to determine if the worker is an employee or an independent contractor?

Prior to beginning work for a company, a chemical engineer signed a contract stating that she agreed to work as an independent contractor. She performs all her duties in the company's laboratories, where she has full access to the company's testing equipment. She works under their direction and maintains regular office hours. What is her status?

A retired safety inspector for the company was rehired as a consultant when the company expanded its plant operations. The retired employee was a natural choice. The tasks he undertook as a consultant were the same as the ones he performed before retirement. Paid monthly, he has agreed to work under the direction of his old boss until the new plant facilities are fully operational. What is his status?

A receptionist has agreed to work afternoons at the company until they can find a full-time replacement. What is the receptionist's status?

Which of the following workers is an independent contractor?

What are exempt employees exempt from?

All of the following types of employees are classified as exempt from the FLSA's minimum wage and overtime requirements except:

A waitress is paid $2.25 per hour, and she received $225.00 in tips during the week. She works 40 hours per week. Which of the following is true?

What is the Federal minimum wage?

If a state sets the minimum wage at a rate greater than the federal minimum wage the state minimum wage must be paid to workers in that state.

A nonexempt employee works in a state with a minimum wage of $7.35 per hour, while living in a state with a minimum wage of $8.05. What is the minimum rate he must be paid?

Tips can be counted toward the employee's minimum wage.

An employee works 40 hours per week as a fry cook. During the week, she substitutes for one for one of the waitresses and reports $5.00 per week in tips. Can her employer pay her $2.13 per hour?

Employers who provide paid vacation leave must count the hours of paid time off when determining if the employee must receive an overtime premium when the total hours worked in a week exceed 40.

A nonexempt employee works the night shift (midnight to 8:00 a.m.) and works 45 hours during the week. Under the FLSA, what must his employer pay him?

The FLSA requires that time worked on Saturday be paid at overtime rates and time worked on Sunday be paid at double time rates.

If a state wage ad hour law requires that a nonexempt employee be paid an overtime premium when the employee works more than 8 hours in a day and the employee works the following schedule, how many overtime hours must the employee be paid? Sun: 5, Mon: 7, Tues: 6, Wed: 8, Thurs: 10, Fri: 8, Sat: 6

Last week a high school teacher spent 40 hours in the classroom, worked 10 hours grading papers and was required to put in another 8 hours on Saturday at the school-sponsored science fair. Under the FLSA, what overtime hours, if any, must the teacher be paid?

When must overtime be paid?

A nonexempt employee working at a hospital can work more than 40 hours in a week and not be paid overtime.

An employer pays semimonthly on the 15th and last day of each month. Their workweek is Sunday through Saturday. Memorial day is May 31. A nonexempt employee worked the following hours. How many hours of overtime, if any, did the employee work during this pay period?

During Thanksgiving week, a nonexempt employee was paid for the following hours. How many hours, if any, of overtime did the employee work?

All of the following types of compensation are included in calculating an employee's regular rate of pay for overtime purposes except:

What type of pay is included in the regular rate of pay calculation?

All of the following types of payments are included in the regular rate of pay calculation except:

An employee worked for 30 hours on his regular shift at $10.00 per hour and 16 hours on the late-night shift at $12.00 per hour. In addition, he earned a production bonus of $50.00. What is his total weekly compensation[blank_start]?[blank_end]

All of the following are reasons payroll keeps records except:

An employer maintains the following information in their employee master file: Hire date Termination date Payment date Regular rate of pay Additions/Deductions from pay Frequency of payment Name two other records that must be kept in order to calculate overtime pay[blank_start]:[blank_end]

An employer maintains their employee master file in computer files. Which of the following statements is true?

All of the following types of records can be combined with payroll data in an integrated system except:

How long must you retain each of the following records in your files? -Proof of tax deposit[blank_start]s[blank_end] -Form I-[blank_start]9[blank_end] -Copies of your quarterly tax return[blank_start]s[blank_end] -Wage and hour record[blank_start]s[blank_end] -Employee time card[blank_start]s[blank_end] -Canceled check[blank_start]s[blank_end] -Name/address/occupation of each employe[blank_start]e[blank_end] -Work time schedule[blank_start]s[blank_end] -Form W-[blank_start]4[blank_end] -Total wages and tip[blank_start]s[blank_end] -Overtime informatio[blank_start]n[blank_end] -Log of inquiries on the jo[blank_start]b[blank_end]

How long should employers keep payroll records beyond legal requirements?

The amount of federal income tax that is withheld from an employee's regular wages is determined by a formula that uses all of the following items except:

When does an employee first complete Form W-4?

When must an employee amend their Form W-4?

Which of the following events would require an employee to fill our an amended Form W-4 within 10 days of its occurrence?

An employee was recently married. The employer pays on the 15th and last day of the month. On June 10th, the employee submitted a revised Form W-4, changing his marital status and number of allowances from one to four. When must you change the amount of his withholding?

An employee is married with one child. His beginning salary is $1,000 semimonthly. Because of an unexpected business trip, the employee fails to submit Form W-4 by his first payday. What withholding status must the employer use for his first paycheck?

Under what conditions can an employee claim exemption from withholding on the Form W-4?

A full time student works a few hours each week as a receptionist. She is claimed as a dependent on her parents' tax return. Last year, she paid no income tax. This year, her anticipated total income is less than $500 and she expects to receive no unearned income. Which of the following statements is true?

All employees must complete a new Form W-4 each year

The personnel of the payroll department must assist employees in determining their marital status and number of allowances for Form W-4.

An employee claims exempt from withholding on his Form W-4. To continue the exempt status for the next year, a new Form W-4: