Question 1

Adrienne is a nonexempt employee who works for a ﬁrm that has an elected workweek composed of four 10-hour days and pays overtime after 40 hours worked per week. What is the rule about overtime for her work situation?
A)She must be compensated for all hours worked past 8 in a single day.
B)She will receive overtime pay when working more than 10 hours during a shift.
C)She is not eligible for overtime pay.
D)She receives overtime only when she works past 40 hours in any given week.

Accepted Answer

Under the Fair Labor Standards Act (FLSA), nonexempt employees are typically entitled to overtime pay when they work more than 40 hours in a workweek, regardless of how those hours are distributed across the days. Therefore, Adrienne would receive overtime only when she works more than 40 hours in a week, not simply for working more than 8 or 10 hours in a day.

Question 2

Jeremiah is a salaried exempt worker whose standard workday consists of eight-hour shifts. During a workweek, he exceeded eight hours of work on two separate days but did not exceed 40 hours during the work week. What is the FLSA provision for the time that he worked past eight hours in a single day?
A)He will receive no additional compensation for the extra time worked.
B)He must alert his manager of the extra time on the next business day.
C)He must be compensated at overtime rates for any hours past eight in a single day.
D)He must reduce the time he works on subsequent days.

Accepted Answer

Under the Fair Labor Standards Act (FLSA), salaried exempt employees are not entitled to overtime pay regardless of the number of hours they work beyond their standard workday, as long as they do not exceed 40 hours in a workweek.

Question 3

Form I-9 is issued by the ____ to verify employment eligibility in the United States.
A)Internal Revenue Service
B)Department of Homeland Security
C)Federal Bureau of Investigation
D)Department of Labor

Accepted Answer

Form I-9 is issued by the Department of Homeland Security. It is used by employers to verify an individual's identity and employment authorization to work in the United States.

Question 4

Which of the following is an example of a typical exempt salaried employee?
A)Operations Manager.
B)Machine Operator.
C)Accounting Clerk.
D)Administrative Assistant.

Accepted Answer

Operations Managers are typically classified as exempt salaried employees because they often have managerial roles that include supervising other employees and making decisions about operations, which qualifies them for exempt status under the Fair Labor Standards Act (FLSA).

Question 5

What is the difference in pay practices between salaried exempt and salaried nonexempt workers?
A)Salaried nonexempt workers must not work overtime hours.
B)Salaried nonexempt workers are eligible for overtime pay.
C)Salaried exempt workers must work between 45 and 50 hours per week.
D)Salaried exempt workers may only work eight hours per day.

Accepted Answer

Salaried nonexempt workers are eligible for overtime pay, distinguishing them from salaried exempt workers who are not entitled to overtime regardless of the hours worked.

Question 6

Payroll records that contain evidence of fraud or other illegal action must be ____.
A)retained for two years
B)destroyed immediately
C)retained indeﬁnitely
D)released to law enforcement oﬃcials

Accepted Answer

Payroll records that contain evidence of fraud or other illegal actions must be retained indefinitely to ensure they are available for any legal investigations or proceedings that may arise.

Question 7

Leased employees must have the following characteristics: (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.)
A)The recipient company must substantially direct their work activities.
B)They must work part-time.
C)A formal agreement between the employee and employer must exist.
D)They must work full-time.

Accepted Answer

The answer of Leased employees must have the following characteristics:...

Question 8

According to the Fair Labor Standards Act, nonexempt workers receive overtime for:
A)Hours worked in excess of 8 per day and 30 per week.
B)Hours worked in excess of 40 per week.
C)Hours worked in excess of employer-determined rules.
D)Hours worked in excess of 9 per day or 35 per week.

Accepted Answer

The Fair Labor Standards Act (FLSA) mandates that nonexempt workers receive overtime pay for hours worked over 40 in a workweek.

Question 9

FATCA enforcement has been diﬃcult because the Internal Revenue Service relies on  ____ for reporting purposes.
A)personal income tax returns
B)employers and employees
C)intermediaries (e.g., banks)
D)foreign countries

Accepted Answer

FATCA (Foreign Account Tax Compliance Act) enforcement is challenging because it relies on intermediaries, such as banks, to report on the foreign financial accounts of U.S. taxpayers. These institutions are responsible for identifying U.S. account holders and reporting their account information to the IRS.

Question 10

A ____ employee is eligible for company beneﬁts whereas a ____employee is not.
A)independent contractor; temporary
B)temporary; part-time
C)leased; temporary
D)temporary; leased

Accepted Answer

A leased employee is eligible for company benefits, whereas a temporary employee typically is not.

Question 11

IRS Regulation 26 CFR 1.6001 mandates ____ procedures as they pertain to payroll records, noting that it is the responsibility of the ____ .
A)employee time review; department manager
B)ﬁle maintenance; employer
C)payroll review; payroll supervisor
D)check authorization; controller

Accepted Answer

IRS Regulation 26 CFR 1.6001 mandates file maintenance procedures as they pertain to payroll records, noting that it is the responsibility of the employer to maintain these records.

Question 12

____ pay is based on sales revenue, while ____ pay is based on manufacturing.
A)Exempt; nonexempt
B)Piece-rate; commission
C)Commission; overtime
D)Commission; piece-rate

Accepted Answer

Commission pay is typically based on sales revenue, meaning employees earn a percentage of the sales they make. Piece-rate pay, on the other hand, is based on the amount of product an employee manufactures or completes, paying them a fixed rate for each unit produced.

Question 13

Personnel in certain full-time occupations are classiﬁed as ____ instead of independent contractors.
A)statutory employees
B)executive workers
C)contract employees
D)non-statutory workers

Accepted Answer

Personnel in certain full-time occupations are classified as statutory employees instead of independent contractors. This classification allows for different tax implications and benefits.

Question 14

Upon termination from a ﬁrm, the employer must disburse the former employee's ﬁnal pay____
.
A)in accordance with state law
B)immediately
C)within 24 hours
D)at the next scheduled payday

Accepted Answer

The timing of the final paycheck is governed by state law, which varies from state to state.

Question 15

Veriﬁcation of hours worked and pay accuracy is part of the ____.
A)accounts payable reconciliation
B)payroll review process
C)disbursement cycle
D)CEO's responsibility

Accepted Answer

Verification of hours worked and pay accuracy is a fundamental aspect of the payroll review process, ensuring that employees are paid correctly for their time and work.

Question 16

The IRS stipulates that no more than ____ percent of a company's employees may be leased employees.
A)10
B)20
C)30
D)40

Accepted Answer

The IRS stipulates that no more than 20 percent of a company's employees may be leased employees.

Quiz 2: Computing Wages and Salaries

Adrienne is a nonexempt employee who works for a ﬁrm that has an elected workweek composed of four 10-hour days and pays overtime after 40 hours worked per week. What is the rule about overtime for her work situation?

Form I-9 is issued by the ____ to verify employment eligibility in the United States.

Which of the following is an example of a typical exempt salaried employee?

What is the difference in pay practices between salaried exempt and salaried nonexempt workers?

Payroll records that contain evidence of fraud or other illegal action must be ____.

According to the Fair Labor Standards Act, nonexempt workers receive overtime for:

FATCA enforcement has been diﬃcult because the Internal Revenue Service relies on ____ for reporting purposes.

A employee is eligible for company beneﬁts whereas a employee is not.

IRS Regulation 26 CFR 1.6001 mandates procedures as they pertain to payroll records, noting that it is the responsibility of the .

pay is based on sales revenue, while pay is based on manufacturing.

Personnel in certain full-time occupations are classiﬁed as ____ instead of independent contractors.

Upon termination from a ﬁrm, the employer must disburse the former employee's ﬁnal pay____ .

Veriﬁcation of hours worked and pay accuracy is part of the ____.

The IRS stipulates that no more than ____ percent of a company's employees may be leased employees.