Question 1

The U.S.v.Windsor case repealed an Act and affected payroll tax withholdings for certain employees.Which Act did Windsor repeal?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

The U.S. v. Windsor case repealed the Defense of Marriage Act (DOMA), which had denied federal recognition of same-sex marriages. This affected the payroll tax withholdings for employees in same-sex marriages who were now recognized under federal law.

Question 2

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

Accepted Answer

While outsourcing payroll can relieve employers of some payroll processing responsibilities, they still retain overall responsibility for the accuracy of their payroll tax filings and other compliance requirements.

Question 3

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), which regulates employee benefit plans. The other Acts listed (HIPAA, PRWORA, and DOMA) are not related to ERISA violations and are not referenced in the Sarbanes-Oxley Act.

Question 4

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 5

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 6

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 can include regulations related to minimum wage, overtime pay, and fair treatment of employees. It is not meant to increase complexity, generate increased tax revenue, or promote governmental involvement in business activities.

Question 7

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

Accepted Answer

Generally, payroll volume is greater for larger businesses as they have more employees. Small companies typically have fewer employees and thus, a smaller payroll volume.

Question 8

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 9

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

The answer of Within how many days after initially commencing...

Question 10

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

Accepted Answer

Internal payroll reports provide information about employee salaries, wages, benefits, and other labor costs. This information is important for managers to make informed decisions about budgeting, hiring, promotion, and compensation.

Question 11

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

Accepted Answer

The Worker's Compensation Act was actually passed in 1911, not 1935.

Question 12

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 discrimination in employment practices for workers who are older than age 40, not 50.

Question 13

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

Accepted Answer

Payroll-related legislation is affected by societal trends such as changes in technology, demographics, and labor market dynamics. For example, legislation related to pay equity, minimum wage laws, and paid family leave are all reflective of societal changes and emerging issues.

Question 14

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, allowing them to temporarily continue under their employer's group health plan. ADEA (Age Discrimination in Employment Act) prohibits age discrimination against employees who are 40 years and older. OSHA (Occupational Safety and Health Act) ensures safe working conditions for employees. ERISA (Employee Retirement Income Security Act) sets minimum standards for retirement, health, and other welfare benefit plans in the private sector.

Question 15

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

USERRA legislation requires that military members be granted reemployment rights, and that they receive the same promotions and pay that they would have received if they had not left to serve in the military. Therefore, Option A and Option B are incorrect. Option D is also incorrect, as employers cannot reduce the salary of returning service members based on their disabilities.

Question 16

The Lilly Ledbetter Act of 2009 mandated equal pay for men and women who perform identical tasks.

Accepted Answer

The Lilly Ledbetter Fair Pay Act of 2009 extended the time limit for filing pay discrimination claims, but it did not mandate equal pay for men and women who perform identical tasks. The Equal Pay Act of 1963 already prohibited gender-based pay discrimination for equal work in the same establishment.

Question 17

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

According to FMLA, the employer is responsible for alerting the employee to any changes in processes and benefits. This includes any changes that may occur while the employee is on family leave. The employer must keep the employee informed so they can make informed decisions about their employment. Therefore, option D is the correct answer.

Question 18

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

Accepted Answer

Some payroll accounting systems have an integrated software package that includes business-planning tools.

Question 19

The IRS uses EINs to track employers for tax purposes.

Accepted Answer

Yes, the IRS uses Employer Identification Numbers (EINs) to track employers for tax purposes. EINs are unique nine-digit numbers assigned to businesses by the IRS for tax identification purposes.

Question 20

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...

Quiz 1: Payroll Practices and System Fundamentals

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

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

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

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

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.

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

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

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

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

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.

Which Act extended medical benefits for certain terminated employees?

The USERRA legislation provided the following:

The Lilly Ledbetter Act of 2009 mandated equal pay for men and women who perform identical tasks.

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

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

The IRS uses EINs to track employers for tax purposes.

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

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