PAYROLL COMPLIANCE LEGISLATION
CERTIFICATION EVALUATION QUESTIONS
AND FULL SOLUTION GRADED A+
⩥ Payroll Compliance.
Answer: The process of following federal, state, and local wage, tax, and
employment regulations when paying employees
⩥ Federal Payroll Taxes.
Answer: Taxes required by the federal government including income tax
withholding, Social Security, Medicare, and FUTA
⩥ State Payroll Taxes.
Answer: State-specific employment taxes such as income tax
withholding and State Unemployment Tax (SUTA)
⩥ Wage and Hour Laws.
Answer: Laws that govern minimum wage, overtime pay, hours worked,
and employee classification
⩥ Exempt vs Non-Exempt.
Answer: Employee classification determining eligibility for overtime
pay under wage and hour laws
, ⩥ W-2 Employee.
Answer: A worker classified as an employee with taxes withheld and
employer-paid payroll taxes
⩥ 1099 Contractor.
Answer: A non-employee responsible for their own taxes;
misclassification can cause penalties
⩥ Employee Misclassification.
Answer: Incorrectly labeling workers as contractors instead of
employees, creating compliance risk
⩥ New Hire Reporting.
Answer: Requirement to report newly hired employees to state agencies
within a required timeframe
⩥ Payroll Garnishments.
Answer: Court-ordered deductions from employee wages such as child
support or tax levies
⩥ Paid Leave Laws.
Answer: State or local laws requiring paid sick leave, family leave, or
medical leave
CERTIFICATION EVALUATION QUESTIONS
AND FULL SOLUTION GRADED A+
⩥ Payroll Compliance.
Answer: The process of following federal, state, and local wage, tax, and
employment regulations when paying employees
⩥ Federal Payroll Taxes.
Answer: Taxes required by the federal government including income tax
withholding, Social Security, Medicare, and FUTA
⩥ State Payroll Taxes.
Answer: State-specific employment taxes such as income tax
withholding and State Unemployment Tax (SUTA)
⩥ Wage and Hour Laws.
Answer: Laws that govern minimum wage, overtime pay, hours worked,
and employee classification
⩥ Exempt vs Non-Exempt.
Answer: Employee classification determining eligibility for overtime
pay under wage and hour laws
, ⩥ W-2 Employee.
Answer: A worker classified as an employee with taxes withheld and
employer-paid payroll taxes
⩥ 1099 Contractor.
Answer: A non-employee responsible for their own taxes;
misclassification can cause penalties
⩥ Employee Misclassification.
Answer: Incorrectly labeling workers as contractors instead of
employees, creating compliance risk
⩥ New Hire Reporting.
Answer: Requirement to report newly hired employees to state agencies
within a required timeframe
⩥ Payroll Garnishments.
Answer: Court-ordered deductions from employee wages such as child
support or tax levies
⩥ Paid Leave Laws.
Answer: State or local laws requiring paid sick leave, family leave, or
medical leave