PAYROLL ACCOUNTING 35TH EDITION
EXAMINATION TEST COMPLETE QUESTIONS
AND ANSWERS
◉ Which age group may work a variety of jobs outside of
manufacturing and mining, but are subject to extensive hour
limitations?
- Under 14 years of age
- Ages 14 and 15
- Ages 16 and 17.
Answer: Ages 14 and 15
◉ Which age group may work an unlimited number of hours?
- Under 14 years of age
- Ages 14 and 15
- Ages 16 and 17.
Answer: Ages 16 and 17
◉ No child under which age may not work in any job classified as
hazardous?.
Answer: 17
,◉ How are the premiums for workers' compensation insurance
based?.
Answer: on the relative risk associated with different job types
◉ How can employers satisfy the requirement for workers'
compensation?.
Answer: By purchasing it from a state-operated fund or private
insurance carrier, or by becoming authorized by the state to be self-
insured.
◉ Payroll Service.
Answer: Calculates employee net pay, generates paychecks,
completes and files monthly, quarterly, and annual payroll tax forms.
Benefits of use include avoiding potential penalties with
mishandling payroll and reducing the amount of time spent on
payroll tasks.
◉ A workweek can differ from a ____ week..
Answer: Calendar
◉ The workweek must be ___ from one week to another. It may only
be altered if the change is intended to be permanent and is not made
in order to circumvent overtime requirements..
,Answer: consistent
◉ If an employee's state mandates a higher minimum wage than the
current federal minimum wage of $7.25/hour, the employee is
required to be paid at least the ____ state rate..
Answer: Higher
◉ Equal Pay Act of 1963.
Answer: Enacted mainly to protect female employees and to prevent
companies from payer lower wages to employees of the other
gender for a similar job.
◉ Pay disparity is allowed under which circumstances?.
Answer: a seniority system, a merit system, a system based on
quantity or quality of input, other non-gender-based systems
◉ Salaried employee.
Answer: paid annually. Annual salary/52 weeks
◉ Wage-earning employee.
Answer: paid on an hourly basis. Regular wage rate x regular hours
worked.
, ◉ A hospital employee is paid $6.95/hour. Is this compliant or non-
compliant with the Fair Labor Standards Act?.
Answer: Non-Compliant
◉ A full-time student, who works for a local college, earns
$7.20/hour for working four hours per day, four days a week, during
the school year. Is this compliant or non-compliant with the Fair
Labor Standards Act?.
Answer: Compliant
◉ An administrative (office) employee earns an annual salary which,
when divided by total hours worked during the year, is the
equivalent of $6.68/hour. Is this compliant or non-compliant with
the Fair Labor Standards Act?.
Answer: Compliant
◉ An employee at a local bakery begins working on June 1. He turns
20 on October 14 and earns $4.25/hour during his first six months
of employment. Is this compliant or non-compliant with the Fair
Labor Standards Act?.
Answer: Non-compliant
◉ A student learner in a qualified vocational program earns
$5.50/hour. The employer has not yet applied for an authorizing
EXAMINATION TEST COMPLETE QUESTIONS
AND ANSWERS
◉ Which age group may work a variety of jobs outside of
manufacturing and mining, but are subject to extensive hour
limitations?
- Under 14 years of age
- Ages 14 and 15
- Ages 16 and 17.
Answer: Ages 14 and 15
◉ Which age group may work an unlimited number of hours?
- Under 14 years of age
- Ages 14 and 15
- Ages 16 and 17.
Answer: Ages 16 and 17
◉ No child under which age may not work in any job classified as
hazardous?.
Answer: 17
,◉ How are the premiums for workers' compensation insurance
based?.
Answer: on the relative risk associated with different job types
◉ How can employers satisfy the requirement for workers'
compensation?.
Answer: By purchasing it from a state-operated fund or private
insurance carrier, or by becoming authorized by the state to be self-
insured.
◉ Payroll Service.
Answer: Calculates employee net pay, generates paychecks,
completes and files monthly, quarterly, and annual payroll tax forms.
Benefits of use include avoiding potential penalties with
mishandling payroll and reducing the amount of time spent on
payroll tasks.
◉ A workweek can differ from a ____ week..
Answer: Calendar
◉ The workweek must be ___ from one week to another. It may only
be altered if the change is intended to be permanent and is not made
in order to circumvent overtime requirements..
,Answer: consistent
◉ If an employee's state mandates a higher minimum wage than the
current federal minimum wage of $7.25/hour, the employee is
required to be paid at least the ____ state rate..
Answer: Higher
◉ Equal Pay Act of 1963.
Answer: Enacted mainly to protect female employees and to prevent
companies from payer lower wages to employees of the other
gender for a similar job.
◉ Pay disparity is allowed under which circumstances?.
Answer: a seniority system, a merit system, a system based on
quantity or quality of input, other non-gender-based systems
◉ Salaried employee.
Answer: paid annually. Annual salary/52 weeks
◉ Wage-earning employee.
Answer: paid on an hourly basis. Regular wage rate x regular hours
worked.
, ◉ A hospital employee is paid $6.95/hour. Is this compliant or non-
compliant with the Fair Labor Standards Act?.
Answer: Non-Compliant
◉ A full-time student, who works for a local college, earns
$7.20/hour for working four hours per day, four days a week, during
the school year. Is this compliant or non-compliant with the Fair
Labor Standards Act?.
Answer: Compliant
◉ An administrative (office) employee earns an annual salary which,
when divided by total hours worked during the year, is the
equivalent of $6.68/hour. Is this compliant or non-compliant with
the Fair Labor Standards Act?.
Answer: Compliant
◉ An employee at a local bakery begins working on June 1. He turns
20 on October 14 and earns $4.25/hour during his first six months
of employment. Is this compliant or non-compliant with the Fair
Labor Standards Act?.
Answer: Non-compliant
◉ A student learner in a qualified vocational program earns
$5.50/hour. The employer has not yet applied for an authorizing
