Question 1

Vincent is a tipped employee who earns a wage of $2.13 per hour in a tip-credit state and works a standard 40-hour workweek. Last week, he earned $60 in tips. Which of the following is true?

Accepted Answer

Vincent's total earnings (wages plus tips) must at least equal the federal minimum wage. If his earnings from wages ($2.13/hour for 40 hours = $85.20) and tips ($60) do not reach the federal minimum wage for a 40-hour workweek, his employer must make up the difference.

Question 2

Gross pay is the amount of employee compensation prior to deducting any amounts for taxes or other withholdings.

Accepted Answer

Gross pay refers to the total amount of money an employee earns before any deductions like taxes, retirement contributions, or health insurance premiums are taken out.

Question 3

The payroll register is a conﬁdential company document.

Accepted Answer

The payroll register contains sensitive information about employees' wages, deductions, and net pay, making it a confidential document that should be securely handled to protect employee privacy.

Question 4

Federal policy explains clear differences between exempt and nonexempt employees.

Accepted Answer

The answer of Federal policy explains clear differences between exempt...

Question 5

The payroll register should be retained indeﬁnitely, unlike most other payroll documentation.

Accepted Answer

The payroll register does not need to be retained indefinitely; typically, it should be kept for a minimum of three to four years according to federal guidelines and the requirements of other regulatory bodies.

Question 6

The difference between the federal minimum wage and the tipped wage involves:

Accepted Answer

The difference between the federal minimum wage and the tipped wage primarily involves the type of work the employee performs, specifically whether the employee earns a significant portion of their income from tips.

Question 7

The tipped minimum wage is $2.13 per hour for all states.

Accepted Answer

The tipped minimum wage of $2.13 per hour is a federal standard, but many states have set higher minimum wages for tipped employees.

Question 8

A ﬁrm is always exempt from FLSA provisions if it has fewer than 5 employees.

Accepted Answer

The Fair Labor Standards Act (FLSA) applies to enterprises that have an annual gross volume of sales made or business done of at least $500,000, regardless of the number of employees. Additionally, employees may be covered individually if they are engaged in interstate commerce or in the production of goods for commerce, among other criteria, regardless of the size of the business.

Question 9

Cole is a minimum wage employee in Santa Fe, NM, where the minimum wage is $11.80 per hour. His employer claims that since the federal minimum wage is $7.25 per hour, Cole should only receive the federal amount. What is the correct answer in this situation?

Accepted Answer

When federal and state laws differ, employers must pay their employees the higher of the two minimum wages. In this case, since Santa Fe's minimum wage is higher than the federal minimum wage, Cole must be paid at least $11.80 per hour.

Question 10

Piece-rate pay is used for employees who participate materially in the sale of manufacturing components.

Accepted Answer

Piece-rate pay is a system where employees are paid based on the quantity of items they produce or complete, not specifically for participation in sales activities.

Question 11

Which of the following automatically exempts an employer from FLSA provisions? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.)

Accepted Answer

The answer of Which of the following automatically exempts an...

Question 12

Which of the following is always true about tipped employees?

Accepted Answer

Tipped employees are defined by their opportunity to earn tips from patrons as a regular part of their job, such as servers in restaurants or bellhops in hotels. This is a consistent characteristic of tipped employment across various contexts.

Question 13

To rule the payroll register means that the payroll accountant establishes procedures about the payroll register.

Accepted Answer

To rule the payroll register means to calculate and record the totals of the various columns in the payroll register, not to establish procedures about it.

Question 14

Nonexempt employees are usually workers who:

Accepted Answer

Nonexempt employees are typically those who perform operative level tasks and are eligible for overtime pay under the Fair Labor Standards Act (FLSA), unlike those in supervisory, executive, or certain professional roles who are usually exempt.

Question 15

To compute the hourly rate for an employee with a 40-hour standard workweek, you would divide the annual salary by 2,080.

Accepted Answer

To compute the hourly rate, you divide the annual salary by 2,080 because a standard work year is considered to be 52 weeks long, and 52 weeks times 40 hours per week equals 2,080 hours.

Question 16

Any employee may request a payroll draw against future earnings.

Accepted Answer

The ability for an employee to request a payroll draw against future earnings is typically subject to the policies of the specific employer and is not universally available to all employees.

Question 17

Paloma is a 16-year-old who babysits for a local family on an occasional basis. During a calendar year, she earned $1,250 in babysitting wages. What is true about Paloma's wages?

Accepted Answer

CPaloma's earnings of $1,250 in a year from babysitting do not meet the threshold for her to be considered a domestic employee under the Fair Labor Standards Act (FLSA), which means the family does not have to treat her as such and abide by all FLSA regulations. However, certain provisions of the FLSA, such as those related to child labor, may still apply to her situation, indicating that not all aspects of the FLSA are irrelevant in her case.

Question 18

Compensatory time is only federally mandated for public salaried exempt employees.

Accepted Answer

Compensatory time, or "comp time," is federally mandated only for public sector employees under the Fair Labor Standards Act (FLSA), allowing them to receive time off in lieu of overtime pay. Private sector salaried exempt employees are not covered by this provision.

Question 19

The hundredth-hour system promotes more accuracy in employee time collection than the quarter-hour system.

Accepted Answer

The hundredth-hour system, which divides an hour into 100 parts, allows for more precise time tracking compared to the quarter-hour system, which rounds time to the nearest quarter hour, potentially leading to less accurate time collection for employees.

Question 20

Salaried employees may be classiﬁed as nonexempt.

Accepted Answer

Salaried employees can be classified as nonexempt if they meet certain criteria such as earning less than a specified amount or performing duties that do not qualify for exempt status under the Fair Labor Standards Act (FLSA), meaning they are eligible for overtime pay.

Quiz 3: Social Security Taxes