Solutions for Payroll Accounting |
Latest version 2024/2025
Circular E - ANSWER -Also known as Publication 15. An employer's tax guide written by the IRS.
Includes due dates for payroll forms, tables to calculate tax withholding, a summary of regulations,
and IRS contact information.
Form SS-4 - ANSWER -Used to obtain an Employer Identification Number (EIN)
Form SS-5 - ANSWER -Used to obtain a Social Security number
Personal Responsibility and Work Opportunity Act of 1996 - ANSWER -Enables better enforcement of
child-support laws. Employers can satisfy the provisions of this act by submitting the newly hired
employee's W-4 Form to the state.
Form W-4 - ANSWER -Indicates the number of tax allowances being claimed. This provides the
employer with information necessary to calculate both federal income tax withholding and
applicable state income tax withholding.
Immigration Reform and Control Act of 1986 - ANSWER -Intended to reduce illegal employment of
foreign workers in the U.S.
Form I-9 - ANSWER -Completed by the employee; acceptable documents are verified by the
employer This document verifies that the employee is permitted to work in the United States.
E-verify - ANSWER -Compares information from employee with that possessed by various
government agencies such as the Social Security Administration and the United States Department of
Homeland Security.
Employee Earnings Record - ANSWER -Contains key employee and payroll information.
Summarizes annual payroll figures.
Facilitates completion of payroll tax forms.
People employed by large businesses with revenues greater than $500,000, governmental agencies
(local, state, or federal), hospitals, schools, and domestic workers and employees working for
interstate commerce businesses must do what? - ANSWER -pay the minimum wage
Which groups of people are exceptions to the federal minimum wage requirement? - ANSWER -
Workers with disabilities, full-time students, young workers, tipped employees, student learners.
What are the pay restrictions for a full-time student when working for specific employers (colleges
and universities, agriculture, and retail or service stores)? - ANSWER -May be paid 85% of the current
minimum wage rate, and are limited to a maximum of 8 hours/day, 20/hours/week while school is in
session.
What are the pay restrictions for a young worker (under 20 years old)? - ANSWER -May be paid
$4.25/hour for the first 90 days of employment, as long as they do not replace another employee.
The pay then reverts to the federal minimum after 90 days or after the employee turns 20, whichever
occurs first.
,What are the pay restrictions for a tipped employee? - ANSWER -May be paid $2.13/hour, as long as
their tips, when added to this amount, equal or exceed the federal minimum wage. They must
receive at least $30 in tips per month. Any deficit will be made up by the employer.
What are the pay restrictions for a student learner enrolled in a vocational school? - ANSWER -May
be paid 75% of the federal minimum wage, as long as they remain in the educational program while
employed. Employers must obtain an authorizing certificate from the U.S. Department of Labor to
pay these reduced wages.
What are the pay restrictions for a person with a disability? - ANSWER -May be paid a percentage of
the current prevailing wage rate for a comparable position and is based on the productivity level of
the employee with the disability.
Who is exempt from overtime wages? - ANSWER -executive, administrative, and professional
workers.
Which age group may only perform specific activities, such as newspaper delivery and working for
their parents' sole proprietorships?
- Under 14 years of age
- Ages 14 and 15
- Ages 16 and 17 - ANSWER -Under 14 years of age
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 certificate. Is this compliant or non-compliant with the Fair Labor
Standards Act? - ANSWER -Non-compliant
A federal government employee earns $7.48/hour. Is this compliant or non-compliant with the Fair
Labor Standards Act? - ANSWER -Compliant
How long should an employer retain records of employment taxes?
2 years
3 years
4 years
5 years - ANSWER -4 years
By what date should the W-2 be furnished to employees and filed with the IRS?
January 31st
March 15th
April 15
Latest version 2024/2025
Circular E - ANSWER -Also known as Publication 15. An employer's tax guide written by the IRS.
Includes due dates for payroll forms, tables to calculate tax withholding, a summary of regulations,
and IRS contact information.
Form SS-4 - ANSWER -Used to obtain an Employer Identification Number (EIN)
Form SS-5 - ANSWER -Used to obtain a Social Security number
Personal Responsibility and Work Opportunity Act of 1996 - ANSWER -Enables better enforcement of
child-support laws. Employers can satisfy the provisions of this act by submitting the newly hired
employee's W-4 Form to the state.
Form W-4 - ANSWER -Indicates the number of tax allowances being claimed. This provides the
employer with information necessary to calculate both federal income tax withholding and
applicable state income tax withholding.
Immigration Reform and Control Act of 1986 - ANSWER -Intended to reduce illegal employment of
foreign workers in the U.S.
Form I-9 - ANSWER -Completed by the employee; acceptable documents are verified by the
employer This document verifies that the employee is permitted to work in the United States.
E-verify - ANSWER -Compares information from employee with that possessed by various
government agencies such as the Social Security Administration and the United States Department of
Homeland Security.
Employee Earnings Record - ANSWER -Contains key employee and payroll information.
Summarizes annual payroll figures.
Facilitates completion of payroll tax forms.
People employed by large businesses with revenues greater than $500,000, governmental agencies
(local, state, or federal), hospitals, schools, and domestic workers and employees working for
interstate commerce businesses must do what? - ANSWER -pay the minimum wage
Which groups of people are exceptions to the federal minimum wage requirement? - ANSWER -
Workers with disabilities, full-time students, young workers, tipped employees, student learners.
What are the pay restrictions for a full-time student when working for specific employers (colleges
and universities, agriculture, and retail or service stores)? - ANSWER -May be paid 85% of the current
minimum wage rate, and are limited to a maximum of 8 hours/day, 20/hours/week while school is in
session.
What are the pay restrictions for a young worker (under 20 years old)? - ANSWER -May be paid
$4.25/hour for the first 90 days of employment, as long as they do not replace another employee.
The pay then reverts to the federal minimum after 90 days or after the employee turns 20, whichever
occurs first.
,What are the pay restrictions for a tipped employee? - ANSWER -May be paid $2.13/hour, as long as
their tips, when added to this amount, equal or exceed the federal minimum wage. They must
receive at least $30 in tips per month. Any deficit will be made up by the employer.
What are the pay restrictions for a student learner enrolled in a vocational school? - ANSWER -May
be paid 75% of the federal minimum wage, as long as they remain in the educational program while
employed. Employers must obtain an authorizing certificate from the U.S. Department of Labor to
pay these reduced wages.
What are the pay restrictions for a person with a disability? - ANSWER -May be paid a percentage of
the current prevailing wage rate for a comparable position and is based on the productivity level of
the employee with the disability.
Who is exempt from overtime wages? - ANSWER -executive, administrative, and professional
workers.
Which age group may only perform specific activities, such as newspaper delivery and working for
their parents' sole proprietorships?
- Under 14 years of age
- Ages 14 and 15
- Ages 16 and 17 - ANSWER -Under 14 years of age
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 certificate. Is this compliant or non-compliant with the Fair Labor
Standards Act? - ANSWER -Non-compliant
A federal government employee earns $7.48/hour. Is this compliant or non-compliant with the Fair
Labor Standards Act? - ANSWER -Compliant
How long should an employer retain records of employment taxes?
2 years
3 years
4 years
5 years - ANSWER -4 years
By what date should the W-2 be furnished to employees and filed with the IRS?
January 31st
March 15th
April 15
