payroll fundamentals
Comprehensive Questions
(Frequently Most Tested) with
Verified Answers
Which of the following regulations is governed by both the state and the federal governments?
1 Method of payment
2 Final pay to a terminated employee
3 Exempt/nonexempt status
4 Breaks - Answer: 3 (Both federal and state wage and hour laws govern minimum wage, overtime and
an employee's exempt status.)
Which of the following amounts are included in the calculation of an employee's regular rate of pay?
1 Pay for hours not worked
2 Shift premiums
3 Employer benefit plan contributions
4 De minimis holiday gifts - Answer: 2 (The FLSA defines regular rate of pay as the total regular pay for all
hours work divided by the hours worked in the workweek. The FLSA exempts the following types of pay
from the regular rate of pay - gifts, paid time off, reimbursed expenses, discretionary bonuses, benefit
plan contributions, and others.)
For more information, refer to Module 1, Lesson 4
All of the following items are covered by the Fair Labor Standards Act EXCEPT:
1 defining equal pay for equal work.
2 defining when escheat laws apply.
3 setting child labor restrictions.
4 setting the minimum age for work. - Answer: 2 (The FLSA regulates overtime, minimum wage, child
labor, and equal pay.)
For more information, refer to Module 1, Lesson 4
,Under the FLSA, an employee under the age of 20 can be paid the opportunity wage for a maximum of:
1. 30 calendar days.
2. 60 calendar days.
3. 90 calendar days.
4. 120 calendar days. - Answer: 3 (Under the FLSA, an employee under the age of 20 can be paid the
opportunity wage of $4.25 per hour for a maximum of 90 calendar days.)
RATIONALE
For more information, refer to Module 1, Lesson 4
Under the FLSA, when a nonexempt employee receives a retroactive pay increase, over what period of
time, if any, will the new pay rate impact the employee's overtime premium?
• The entire period of the retroactive increase
b. Only the current workweek
c. Only the current pay period
d. It does not have to be considered in the overtime premium - Answer: 1 (Under the FLSA, when a
nonexempt employee receives a retroactive pay increase, the new pay rate impacts the employee's
overtime premium for the entire period of the retroactive increase.)
SSN stands for - Answer: Social Security Number
What does an I-9 Form stands for? - Answer: The Employment Eligibility Verification Form
What is the Employement Eligibility Verication Form code? - Answer: I-9
What does the Employment Verification Form do? - Answer: This proves that the employee can work in
the United States.
What does the I-9 form do? - Answer: This proves that the employee can work in the United States.
What does a W-4 form stands for? - Answer: The Employee's Witholding Allowance Certificate
,What is the code form for The Employee's Witholding Allowance Certificate? - Answer: W-4
What does the W-4 form do? - Answer: It is used to calculate the federal income taxeach emloyee owes
each pay period. These taxes are subtracted from each paycheck
What does the Employee's Withholding Allance Certificate do? - Answer: It is used to calculate the
federal income taxeach emloyee owes each pay period. These taxes are subtracted from each paycheck
Do all states have State taxes? - Answer: NO
Employees who work in a state with a State Income Tax may have to fill out another form ? - Answer:
Yes, another W-4 but for the State Witholding Allowance Certificate.
Does depending where the employess work and live, they may be asked to fill out form for local, county,
or city income tax withholdong. - Answer: Yes
The employee's SSN sets up an account for the employee with the ________? - Answer: SSA Social
Security Administration
Each year the employer (The BOSS)reports wages that are recorded in the account at SSA. - Answer:
TRUE
Each month the employer (The BOSS)reports wages that are recorded in the account at SSA. - Answer:
FALSE
When the employee retires or becomes disabled, SS benefits are paid based on the total earnings
reported by the employee's employers. - Answer: TRUE
When the employee retires or becomes disabled, SS benefits are paid based on half of the earnings
reported by the employee's employers. - Answer: FALSE
, IRS stands for? - Answer: Internal Revenue Service
Who are the Internal Revenue Service? - Answer: The United States' Tax Collector
The IRS uses ________as your personal taxpayer identification number when wages and taxes are
reported each year. - Answer: Social Security Number
The employees yearly wages and tax information that are reported to the Social Security Administration
is shared with the IRS for income tax purposes. - Answer: TRUE
The employees yearly wages and tax information that are reported to the Social Security Administration
can not be shared with the IRS for income tax purposes. - Answer: FALSE
Methods of paying Employees name them: - Answer: check,direct deposit, cash
Direct deposit is - Answer: an electronic fund transfer of their pay directly into their bank account.
Paycard is - Answer: is a Debit payroll card to pay employees, especially when they don't have a bank
account.
All employees working in the United States must pay Federal Income and Employment taxes on their
wages. - Answer: TRUE
Employers collects withholds money (federal income taxes and empoyment taxes depending other taxes
city ect) from your paycheck to the federal state, and or local governments - Answer: TRUE
A resently divoresed e,ployee is required to file a new form W-4 - Answer: TRUE
What is the feeral minimum hourly rate an employer can pay to tipped employees who received at least
30 $ per month in tips? - Answer: 2.13
Comprehensive Questions
(Frequently Most Tested) with
Verified Answers
Which of the following regulations is governed by both the state and the federal governments?
1 Method of payment
2 Final pay to a terminated employee
3 Exempt/nonexempt status
4 Breaks - Answer: 3 (Both federal and state wage and hour laws govern minimum wage, overtime and
an employee's exempt status.)
Which of the following amounts are included in the calculation of an employee's regular rate of pay?
1 Pay for hours not worked
2 Shift premiums
3 Employer benefit plan contributions
4 De minimis holiday gifts - Answer: 2 (The FLSA defines regular rate of pay as the total regular pay for all
hours work divided by the hours worked in the workweek. The FLSA exempts the following types of pay
from the regular rate of pay - gifts, paid time off, reimbursed expenses, discretionary bonuses, benefit
plan contributions, and others.)
For more information, refer to Module 1, Lesson 4
All of the following items are covered by the Fair Labor Standards Act EXCEPT:
1 defining equal pay for equal work.
2 defining when escheat laws apply.
3 setting child labor restrictions.
4 setting the minimum age for work. - Answer: 2 (The FLSA regulates overtime, minimum wage, child
labor, and equal pay.)
For more information, refer to Module 1, Lesson 4
,Under the FLSA, an employee under the age of 20 can be paid the opportunity wage for a maximum of:
1. 30 calendar days.
2. 60 calendar days.
3. 90 calendar days.
4. 120 calendar days. - Answer: 3 (Under the FLSA, an employee under the age of 20 can be paid the
opportunity wage of $4.25 per hour for a maximum of 90 calendar days.)
RATIONALE
For more information, refer to Module 1, Lesson 4
Under the FLSA, when a nonexempt employee receives a retroactive pay increase, over what period of
time, if any, will the new pay rate impact the employee's overtime premium?
• The entire period of the retroactive increase
b. Only the current workweek
c. Only the current pay period
d. It does not have to be considered in the overtime premium - Answer: 1 (Under the FLSA, when a
nonexempt employee receives a retroactive pay increase, the new pay rate impacts the employee's
overtime premium for the entire period of the retroactive increase.)
SSN stands for - Answer: Social Security Number
What does an I-9 Form stands for? - Answer: The Employment Eligibility Verification Form
What is the Employement Eligibility Verication Form code? - Answer: I-9
What does the Employment Verification Form do? - Answer: This proves that the employee can work in
the United States.
What does the I-9 form do? - Answer: This proves that the employee can work in the United States.
What does a W-4 form stands for? - Answer: The Employee's Witholding Allowance Certificate
,What is the code form for The Employee's Witholding Allowance Certificate? - Answer: W-4
What does the W-4 form do? - Answer: It is used to calculate the federal income taxeach emloyee owes
each pay period. These taxes are subtracted from each paycheck
What does the Employee's Withholding Allance Certificate do? - Answer: It is used to calculate the
federal income taxeach emloyee owes each pay period. These taxes are subtracted from each paycheck
Do all states have State taxes? - Answer: NO
Employees who work in a state with a State Income Tax may have to fill out another form ? - Answer:
Yes, another W-4 but for the State Witholding Allowance Certificate.
Does depending where the employess work and live, they may be asked to fill out form for local, county,
or city income tax withholdong. - Answer: Yes
The employee's SSN sets up an account for the employee with the ________? - Answer: SSA Social
Security Administration
Each year the employer (The BOSS)reports wages that are recorded in the account at SSA. - Answer:
TRUE
Each month the employer (The BOSS)reports wages that are recorded in the account at SSA. - Answer:
FALSE
When the employee retires or becomes disabled, SS benefits are paid based on the total earnings
reported by the employee's employers. - Answer: TRUE
When the employee retires or becomes disabled, SS benefits are paid based on half of the earnings
reported by the employee's employers. - Answer: FALSE
, IRS stands for? - Answer: Internal Revenue Service
Who are the Internal Revenue Service? - Answer: The United States' Tax Collector
The IRS uses ________as your personal taxpayer identification number when wages and taxes are
reported each year. - Answer: Social Security Number
The employees yearly wages and tax information that are reported to the Social Security Administration
is shared with the IRS for income tax purposes. - Answer: TRUE
The employees yearly wages and tax information that are reported to the Social Security Administration
can not be shared with the IRS for income tax purposes. - Answer: FALSE
Methods of paying Employees name them: - Answer: check,direct deposit, cash
Direct deposit is - Answer: an electronic fund transfer of their pay directly into their bank account.
Paycard is - Answer: is a Debit payroll card to pay employees, especially when they don't have a bank
account.
All employees working in the United States must pay Federal Income and Employment taxes on their
wages. - Answer: TRUE
Employers collects withholds money (federal income taxes and empoyment taxes depending other taxes
city ect) from your paycheck to the federal state, and or local governments - Answer: TRUE
A resently divoresed e,ployee is required to file a new form W-4 - Answer: TRUE
What is the feeral minimum hourly rate an employer can pay to tipped employees who received at least
30 $ per month in tips? - Answer: 2.13
