The Fair Labor Standards Act is commonly known as the Federal Wage and Hour Law?
T/F -CORRECT ANSWER- True
All states have set their minimum wage to
... [Show More] be the same as the federal government.
T/F -CORRECT ANSWER- False
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 -CORRECT ANSWER- D. Individual who performs services in a covered employment
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 -CORRECT ANSWER- A. Self- Employment Contributions Act
The amount of Federal Income Taxes (FIT) to be withheld is determined after subtracting from the employee's gross wages and state taxes.
T/F -CORRECT ANSWER- False
FIT=Gross- Pretax- 401(k)
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 -CORRECT ANSWER- D. Corporate Officer, such as CEO and CFO
Form 941 is used by employers to make their quarterly return of FICA taxes and withheld income taxes.
T/F -CORRECT ANSWER- True
Under the FLSA, wages include sales commissions and bonuses paid for employee performance
T/F -CORRECT ANSWER- True
Which workers are exempt from all FLSA requirements?
A. Line Cooks earning less than $200 a week
B. Taxicab drivers
C. Fast-food restaurant employees
D. None of the above -CORRECT ANSWER- D. None of the above
Which of the following is a factor considered in determining coverage of interstate employees?
A. Location of employee's residence
B. Place where work is localized
C. Both A and B
D. None of the above -CORRECT ANSWER- C. Both A and B
Which of the following CAN be included in a cafeteria plan?
A. Educational Assistance
B. Health savings account
C. Group term life-insurance ($50,000 of coverage)
D. Dependent group term life-insurance -CORRECT ANSWER- B. Health savings accounts
What taxes are imposed under the Social Security Act? A: Three Taxes on employers
B: One taxes on employees
C: Taxes on the gross earnings of the self-employed
D: None of the above -CORRECT ANSWER- D. None of the above
Employees paid semi-monthly receive earnings every two weeks. T/F -CORRECT ANSWER- False
What does SECA do?
A. Social security taxes done on employees on a state level
B. Social security taxes done on self-employee's net total
C. Social security taxes done on self-employee's gross total
D. Social security taxes done on employers on a state level -CORRECT ANSWER- B. Social security taxes done on self-employee's net total
What does From W-3 accomplish?
A. Transactions of Wage and Tax Statements
B. Transmittal of tipped employee's statements
C. Transmittal of Wage and Tax Statement
D. Corrected Transmittal of Wage Statements -CORRECT ANSWER- C. Transmittal of Wage and Tax Statement
Which of the following is NOT protected under the Civil Rights Act of 1964?
A. National Origin
B. Age
C. Sex
D. Religion -CORRECT ANSWER- B. Age
A "living wage" is passed through a particular state's law T/F -CORRECT ANSWER- False
What does the IRCA acronym stand for?
A. Insurance Reemployment Contribution Act
B. Immigration Reform and Contribution Act
C. Immigration Reemployment and Control Act
D. Immigration Reform and Control Act -CORRECT ANSWER- D. Immigration Reform and Control Act
What rights does USERRA protect?
A. Unemployment for returning military personnel
B. Maternity or Paternity leave for returning military personnel
C. Security of seniority and employment for returning military personnel
D. Security for temporary jobs for returning military personnel -CORRECT ANSWER- C. Security of seniority and employment for returning military personnel
How many years are employers required to retain W-2 information after an employee leaves? -CORRECT ANSWER- 4 years
What does a Time Sheet do?
A. Records arrival and departure times of employees
B. Records rate of pay of employees
C. Records hours worked and deductions of employees
D. Both B and C -CORRECT ANSWER- A. Records arrival and departure times of employees
Which of the following is not a method of calculating overtime pay for an employee working 2 different jobs with 2 different pay rates for the same employer?
A. An employer can pay an employee the higher pay rate
B. An employer can pay an employee the rate of the job worked after the 40th hour if the employee has agreed to this in advance
C. An employer can pay an employee a rate equal to the total earnings divided by the total hours worked multiplied by 0.5
D. An employer can pay an employee a rate equal to the total earnings divided by the total hours worked multiplied by 1.5 -CORRECT ANSWER-
D. An employer can pay an employee a rate equal to the total earnings divided by the total hours worked multiplied by 1.5
Under FICA, which of the following is NOT a consideration to consider an individual for coverage?
A. If the service the individual renders is employment defined by FICA tax law
B. If the service the individual renders is determined as domestic work under FLSA tax law
C. If the compensation the individual receives is defined as taxable wages
D. If the individual is defined by the common-law relationship of an employer and employee -CORRECT ANSWER- B. If the service the individual renders is determined as domestic work under FLSA tax law
Which of the following are coverage exceptions under FUTA?
A. Members of partnerships
B. Insurance agents paid solely on a commission basis
C. Governmental employees of international organizations
D. Directors of corporations who participate in daily operating procedures - CORRECT ANSWER- D. Directors of corporations who participate in daily operating procedures
A son working for his parents in his family-owned business is not covered under FLSA
T/F -CORRECT ANSWER- True
FICA and FUTA deposits are deposited separately T/F -CORRECT ANSWER- True
Which of the following is NOT a penalty of wage theft under FLSA law
A. Severance Pay
B. "Hot Goods" injunctions
C. Back Pay
D. Court and attorney fees -CORRECT ANSWER- A. Severance Pay
What is the percentage of total wages of fringe benefits that are subject to federal income tax withholding?
A. 15%
B. 22%
C. 46%
D. 34% -CORRECT ANSWER- B. 22%
In the example of a form W-2c, what does the "c" stand for?
A. Contributions
B. Corrected
C. Corporate
D. Controlled -CORRECT ANSWER- B. Corrected
Which of the following forms would an employer file when completing FUTA taxes?
A. Form 941
B. Form 941 Schedule B
C. Form 940
D. From 4070 -CORRECT ANSWER- C. Form 940
Which best describes the form W-2?
A. Transmittal of corrected wage and tax statements
B. Report of the amount of wages paid to each worker
C. Identification and verification of employment eligibility
D. Report of employees taxability based on their marital status, dependents, and other factors -CORRECT ANSWER- B. Report of the amount of wages paid to each worker
How many states do NOT have State Income Taxes (SIT)? -CORRECT ANSWER- 9 States
What does the acronym FICA stand for? -CORRECT ANSWER- Federal Insurance Contributions Act
Which form is used to report the amount of distributions from pension and retirement plans?
A. Form 1099-R
B. Form W-3p
C. Form W-4
D. Form W-2c -CORRECT ANSWER- A. Form 1099-R
How is the Social Security taxable wage base defined?
A. The maximum amount of wages paid during a calendar year that is subject to the Social Security Tax
B. All amounts either earned by or paid to an employee during a calendar year
C. All amounts paid to an employee during a calendar year
D. All amounts earned by an employee during a calendar year -CORRECT ANSWER- A. The maximum amount of wages paid during a calendar year that is subject to the Social Security Tax
By the use of executive orders, the federal government has banned discrimination in employment on government contracts.
T/F -CORRECT ANSWER- True
Each state imposes an income tax on employees that is 2% of gross wages.
T/F -CORRECT ANSWER- False
Which law establishes the minimum wage?
A. Fair Labor Standards Act
B. Federal Income Tax
C. Federal Insurance Contributions Act
D. Federal Unemployment Tax Act -CORRECT ANSWER- A. Fair Labor Standards Act
What is the current federal minimum wage? -CORRECT ANSWER- $7.25
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 -CORRECT ANSWER- D. Equal Employment Opportunity Act
Which 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 -CORRECT ANSWER- B. Verification of employment eligibility
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 -CORRECT ANSWER- D. Employment eligibility of new hires
What is the definition of an applicable larger employer according to the Affordable Care Act?
A. 15 or more full-time employees during the previous year
B. 1 or more full-time employee 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 -CORRECT ANSWER- D. 50 or more full-time employees during the previous year
Domestics, which includes cooks, butlers, caretakers, are excluded from coverage under the FLSA.
T/F -CORRECT ANSWER- False
Employees paid biweekly receive earnings every two weeks. T/F -CORRECT ANSWER- True
The FLSA requires that workers receive overtime pay for all hours worked in excess of 40 in a workweek.
T/F -CORRECT ANSWER- True
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. Nursing home
B. Public Agency
C. A hospital
D. All of the Above -CORRECT ANSWER- D. All of the Above
One of the tests to be met for the white-collar exemption for an executive is to be paid a salary of at least $1000 per week
T/F -CORRECT ANSWER- False
Which workers are exempt from all Fair Labor Standards Act requirements?
A. Clerk-typists earning less than $200 a week
B. Taxi-cab drivers
C. Motion picture theater employees
D. None of the above -CORRECT ANSWER- D. None of the above
Which of the following is true according to the Equal pay act?
A. Employers must pay a married male a higher wage rate than a single female 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 pay differential, employers may reduce the higher rate to equal the lower rate -CORRECT ANSWER- C. Wage differentials based on a seniority system are allowed
Which of the following is true according to FLSA?
A. That employers use time cards to record the employees' time worked
B. That employers use the continental time system to record all time worked by employees
C. That employers keep records that show the hours each employee worked each workday and each workweek
D. That employees sign each clock card -CORRECT ANSWER- C. That employers keep records that show the hours each employee worked each workday and each workweek
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 rates
B. One and one half the lower of the two rates
C. One- half the higher of the two rates
D. None of the above -CORRECT ANSWER- D. None of the above
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 -CORRECT ANSWER- C. All hours worked in excess of 40 in a workweek
The highest paid executives of a firm are excluded from coverage under the Federal Insurance Contributions Act (FICA)
T/F -CORRECT ANSWER- False
Severance pay is considered taxable under FICA T/F -CORRECT ANSWER- True
Form 941 is used by employers to make their quarterly return of FICA taxes and withheld income taxes
T/F -CORRECT ANSWER- True
Under FICA, only cash tips of more than $100 in a month are defined as taxable wages
T/F -CORRECT ANSWER- False , the correct answer is $20 in a month
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 -CORRECT ANSWER- C. Total cash tips of $15 received by a tipped employee in May
How is the OASDI (social security) taxable wage based 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 -CORRECT ANSWER- B. The maximum amount of wages paid during a calendar year that is subject to the OASDI tax
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 y/o child in the employ of the mother
C. Babysitting service performed by a 35 y/o person who receives $40 cash during the calendar quarter
D. Federal government secretaries hired in 1990 -CORRECT ANSWER- D. Federal government secretaries hired in 1990
Which is not a taxable wage under FICA?
A. Value of meals furnished employees for the employer's convenience
B. Commissions
C. Severance pay
D. All of the above -CORRECT ANSWER- A. Value of meals furnished employees for the employer's convenience
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 -CORRECT ANSWER- B. Wage supplements to cover difference between employees' salaries and their military pay
What taxes are imposed under the Social Security Act?
A. Two taxes on employers
B. Two taxes on employees
C. Taxes on the net earnings of the self-employed
D. All of the above -CORRECT ANSWER- D. All of the above
Not-for-profit corporations exempt from federal income taxes are employers under the federal income tax withholding law
T/F -CORRECT ANSWER- True
The amount of federal income taxes to be withheld is determined after subtracting from the employee's gross wages and state taxes
T/F -CORRECT ANSWER- False
All taxable, non-cash fringe benefits received during the year can only be added to the employees' taxable pay on the last payday of the year
T/F -CORRECT ANSWER- False
For state income tax purposes, all states treat 401(K) plan payroll deductions as nontaxable
T/F -CORRECT ANSWER- False
Under the federal income tax withholding law, which worker is not an employee?
A. Partner who draws compensation for services rendered the partnership
B. General manager, age 66
C. Payroll clerk hired one week ago
D. Governor of the state of Florida -CORRECT ANSWER- A. Partner who draws compensation for services rendered the partnership
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. Minister of Presbyterian church -CORRECT ANSWER- B. Tipped employee's monthly tips of $120
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 -CORRECT ANSWER- D. All of the above are taxable
Which cannot be included in a cafeteria plan?
A. Group-term life insurance (first 50,000 of coverage)
B. Dependent care assistance (first $5000)
C. Self insured medical reimbursement plan
D. Educational assistance -CORRECT ANSWER- D. Educational assistance
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 -CORRECT ANSWER- D. Payments made under workers' compensation law
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. -CORRECT ANSWER- 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.
Insurance agents paid solely on a commission basis are not considered employees under FUTA?
T/F -CORRECT ANSWER- True
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.
T/F -CORRECT ANSWER- False
FUTA and SUTA coverages extend to U.S. citizens working abroad for American employers.
T/F -CORRECT ANSWER- True
Retirement pay is taxable wages for FUTA purposes. T/F -CORRECT ANSWER- False
An employer must pay the quarterly FUTA tax liability, how much is it?
A. $3000
B. $500
C. $1000
D. $1 -CORRECT ANSWER- B. $500
Which payments are taxable payments for federal unemployment tax?
A. Christmas gifts, excluding noncash gifts of nominal value
B. Caddy fees
C. Courtesy discounts to employees and their families
D. Workers' compensation payments -CORRECT ANSWER- 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 month after quarter
D. End of the following quarter -CORRECT ANSWER- A. End of the month after the quarter
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 -CORRECT ANSWER- 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 -CORRECT ANSWER- C. Location of company's payroll department
What position is included under the definition of employees for FUTA purposes?
A. Independent contractor.
B. Insurance agents paid solely on commission
C. Student nurses
D. Officers of a corporation -CORRECT ANSWER- D. Officers of a corporation
Which wages for FUTA are taxable in any calendar year? -CORRECT ANSWER- The first $7000 of remuneration paid by the employer to an employee
Independent Contractors -CORRECT ANSWER- People who follow independent trade, business, or profession where services are offered to the public.
Annualizing Wages -CORRECT ANSWER- Method of determining the amount of income taxes to be withheld by multiplying the wages for one payroll period by the number of payroll periods in the year.
Voluntary Contributions -CORRECT ANSWER- Payments deliberately made by employers to their state funds in order to qualify for a lower unemployment compensation tax rate
Who imposes SUTA and what is it used for? -CORRECT ANSWER- The state imposes in (State Unemployment Tax Act) and it's used to pay for the unemployment benefits. The person has to actively be seeking employment
FICA (Federal Insurance Contributions Act) -CORRECT ANSWER- Social Security and Medicare
According to the ADA (Americans with Disabilities Act), what does the employer have to provide? -CORRECT ANSWER- Accommodations for the disabled, wheelchair ramps, handicap parking, etc...
What must be determined before coverage under FICA? -CORRECT ANSWER- There has to be an employee-employer relationship
When are W-4 forms supposed to be completed? -CORRECT ANSWER- Employee must complete upon hire
If vacation pay is withheld from a payroll, how is it done? -CORRECT ANSWER- Treat as regular supplemental wage then calculate the tax on the total as a single payment
FICA and FIT are always deposited together T/F -CORRECT ANSWER- True [Show Less]