Question 1

Within how many days after initially commencing work must an employer report a new employee, according to PRWOR?
A) 7
B) 10
C) 20
D) 30

Accepted Answer

C

Question 2

The Age Discrimination in Employment Act (ADEA) prohibits discrimination in employment practices for workers who are older than age 50.

Accepted Answer

The Age Discrimination in Employment Act (ADEA) prohibits employment discrimination against persons 40 years of age or older.

Question 3

Payroll-related legislation often reflects emerging issues in societal evolution.

Accepted Answer

Payroll-related legislation is impacted by changing societal norms, such as increasing diversity in the workforce, changes in employment practices, and evolving labor laws. As society changes, so too do the laws and regulations that govern payroll and employment practices.

Question 4

The IRS uses EINs to track employers for tax purposes.

Accepted Answer

The IRS uses Employer Identification Numbers (EINs) to identify businesses and other entities for tax purposes. EINs are also used to track employment taxes, including Social Security, Medicare, and federal income tax withholdings. Each employer is assigned a unique EIN that helps the IRS keep track of their tax obligations and compliance.

Question 5

Employment legislation during the 1930s included which of the following Acts:
A) FLSA, FUTA, and FICA.
B) ADEA, Davis-Bacon Act, and FLSA.
C) Walsh-Healey Act, FICA, and ERISA.
D) FUTA, ADA, and FLSA.

Accepted Answer

The answer of Employment legislation during the 1930s included which...

Question 6

According to FMLA, during the time that an employee is on family leave:
A) The employer must not contact the employee during the leave.
B) The employee is responsible for staying in touch with the employer.
C) The employer may make changes to the employee's benefits.
D) The employer is responsible for alerting the employee to changes in processes and benefits.

Accepted Answer

The employer is responsible for communicating any changes in processes and benefits to the employee while they are on family leave. The employer should also ensure that the employee knows how to stay in touch if any issues arise during the leave. Therefore, option D is the correct answer.

Question 7

Internal payroll reports are used to inform a firm's managers and decision-makers about labor costs.

Accepted Answer

Internal payroll reports are essential for providing information about labor costs, including employee wages, benefits, and taxes. This information is crucial for managers and decision-makers to make informed decisions about budgeting, staffing levels, and resource allocation.

Question 8

The Age Discrimination in Employment Act of 1967 prevented mandatory retirement for workers over the age of:
A) 55.
B) 50.
C) 45.
D) 40.

Accepted Answer

The answer of The Age Discrimination in Employment Act of...

Question 9

The purpose of payroll legislation is to:
A) Increase the complexity involved in compensating employees.
B) Protect the rights of employees by legislating workplace equity.
C) Generate increased tax revenue for governmental entities.
D) Promote governmental involvement in business activities.

Accepted Answer

The purpose of payroll legislation is to protect the rights of employees by legislating workplace equity. This includes ensuring fair compensation, preventing discrimination, and establishing worker protections such as minimum wage and overtime laws. It is not intended to increase complexity or promote governmental involvement in business activities, although it may generate tax revenue for governmental entities as a side effect.

Question 10

The payroll volume tends to be greater for small companies than for large businesses.

Accepted Answer

Typically, large businesses have more employees and therefore a larger payroll volume compared to small companies.

Question 11

Payroll taxes were instituted by the 16^th Amendment to the United States Constitution: A) To pay for governmental salaries. B) To make money from businesses that had employees. C) To fund infrastructure improvements of booming cities. D) To penalize people who needed employment.

Accepted Answer

The answer of Payroll taxes were instituted by the 16^th...

Question 12

The U.S. v. Windsor case repealed an Act and affected payroll tax withholdings for certain employees. Which Act did Windsor repeal?
A) OSHA
B) ARRA
C) ATRA
D) DOMA

Accepted Answer

Windsor repealed the Defense of Marriage Act (DOMA), which defined marriage as between one man and one woman for the purpose of federal law. This affected payroll tax withholdings for certain employees because it allowed same-sex spouses to be recognized under federal law for tax purposes.

Question 13

The USERRA legislation provided the following:
A) Military service members receive mandatory priority during the hiring process.
B) Military service members receive preferential treatment for promotions and raises during the normal course of business.
C) Military members must receive the same promotions and compensation that they would have received when they return from active duty.
D) Injured military veterans must be allowed to return to work, but their compensation may be reduced based on their disability.

Accepted Answer

The USERRA legislation requires that military members must receive the same promotions and compensation that they would have received had they not been on active duty. This is to ensure that military service members are not penalized for their service and have a fair opportunity to advance in their civilian careers. Options A and B are not accurate as the legislation does not mandate preferential treatment in hiring or promotions. Option D is also incorrect as the compensation of injured military veterans cannot be reduced based on their disability.

Question 14

Payroll accounting systems may involve an integrated software package that contains business-planning tools.

Accepted Answer

Payroll accounting systems can include a range of business-planning tools and integrations.

Question 15

The Sarbanes-Oxley Act legislated penalties for violations of which Act?
A) HIPAA
B) ERISA
C) PRWOR
D) DOMA

Accepted Answer

The Sarbanes-Oxley Act legislated penalties for violations of the Employee Retirement Income Security Act (ERISA). The Sarbanes-Oxley Act itself was created in response to the corporate accounting scandals of the early 2000s, such as Enron and WorldCom, and was aimed at improving corporate governance and financial reporting. While it has no direct relationship with HIPAA, PRWORA, or DOMA, these Acts all address important social and legal issues in their own right.

Question 16

Which Act extended medical benefits for certain terminated employees?
A) ADEA
B) COBRA
C) OSHA
D) ERISA

Accepted Answer

COBRA (Consolidated Omnibus Budget Reconciliation Act) extended medical benefits for certain terminated employees. It requires employers with 20 or more employees to offer continued health benefits for up to 18 months to employees who lose their job or have their work hours reduced.

Question 17

The Lilly Ledbetter Act of 2009 was the first act that mandated equal pay for men and women who perform identical tasks.

Accepted Answer

The Lilly Ledbetter Fair Pay Act of 2009 extended the time period for individuals to file pay discrimination claims, but it did not mandate equal pay for identical tasks. The Equal Pay Act of 1963 remains the law that mandates equal pay for men and women who perform substantially equal work in the same establishment.

Question 18

The ethical principle of due care pertains to the upholding of rights and justice of stakeholders.

Accepted Answer

The ethical principle of due care primarily focuses on the obligation to prevent harm and ensure the safety of products or services, rather than directly on upholding rights and justice of stakeholders.

Question 19

The Worker's Compensation Act of 1935 legislated the payment of worker's compensation insurance.

Accepted Answer

The correct year for the Worker's Compensation Act is 1915, not 1935.

Question 20

The use of outsourced payroll relieves employers of the responsibility for payroll accuracy.

Accepted Answer

Although outsourced payroll services can assist with payroll processing, employers remain ultimately responsible for ensuring payroll accuracy and compliance with regulations.

Quiz 1: Payroll Practices and System Fundamentals

Within how many days after initially commencing work must an employer report a new employee, according to PRWOR?

The Age Discrimination in Employment Act (ADEA) prohibits discrimination in employment practices for workers who are older than age 50.

Payroll-related legislation often reflects emerging issues in societal evolution.

The IRS uses EINs to track employers for tax purposes.

Employment legislation during the 1930s included which of the following Acts:

According to FMLA, during the time that an employee is on family leave:

Internal payroll reports are used to inform a firm's managers and decision-makers about labor costs.

The Age Discrimination in Employment Act of 1967 prevented mandatory retirement for workers over the age of:

The purpose of payroll legislation is to:

The payroll volume tends to be greater for small companies than for large businesses.

Payroll taxes were instituted by the 16th Amendment to the United States Constitution:

The U.S. v. Windsor case repealed an Act and affected payroll tax withholdings for certain employees. Which Act did Windsor repeal?

The USERRA legislation provided the following:

Payroll accounting systems may involve an integrated software package that contains business-planning tools.

The Sarbanes-Oxley Act legislated penalties for violations of which Act?

Which Act extended medical benefits for certain terminated employees?

The Lilly Ledbetter Act of 2009 was the first act that mandated equal pay for men and women who perform identical tasks.

The ethical principle of due care pertains to the upholding of rights and justice of stakeholders.

The Worker's Compensation Act of 1935 legislated the payment of worker's compensation insurance.

The use of outsourced payroll relieves employers of the responsibility for payroll accuracy.

Payroll taxes were instituted by the 16^th Amendment to the United States Constitution: