FPC Book questions
What taxes, if any, must be withheld from an employee's pay? - ANS--federal income
-social security
-medicare
-state taxes
-local taxes
What taxes, if any, must be withheld from an independent contractor's pay who provides a TIN?
- ANS-1099 EE who are provided a TIN do not have taxes withheld and must pay them on their
own
Who has the responsibility to determine if the worker is an employee or independent contractor -
ANS-Hiring entity is held responsible even though IRS and SSA lay out guidelines
Prior to beginning work for a company, a chemical engineer signed a contract stating that she
agreed to work as a 1099. She performs all her duties in the company labs, where she has full
access to their testing equiptment. She works under the companys direction and maintains her
regular office hours. What is her status? - ANS-Employee - do not assume that the ER has
fulfilled its responsibilites and is free from penalty simply by having a worker sign a contract
stating he or she is an 1099. Indivduals do not have a right to waive their EE status in a contract
A retired safety inspector for the company was rehired as a consultant when they company
expanded its plant operations. The reitred EE was a natural choice, the tasks he undertook as a
consultant were the same as the ones he performed before retirement. Paid monthly, he has
agreed to work under the direction of his old boss until the new plant facilities are fully
operational. What is his status? - ANS-Employee - consultants are generally treated as
contractors. However, when an ex employee is performing the same or a similar job as before
retirement/termination. It is unlikely that he or she qualifies as a 1099 after termination
A receptionist has agreed to work afternoons at the company until the company can find a
full-time replacement. What is the receoptionist stauts? - ANS-Employee- it doesnt matter if she
is full time or part time.
What are exempt employees exempt from ? - ANS-minimum wage and overtime - they must be
paid a fixed salary for each workweek
All of the following types of employees are classified as exempt from FLSA minimum wage and
overtime requirements except - ANS-computer repairman
A waitress is paid $2.25 per hour and she recieves $255 in tips during the week. She works 40
hours a week. Do you have to alter her base pay ?
, Check: 7.25 x per hour = answer - ANS-2.25 x 40 = 90
90 + 255 = 345
= 8.62 per hour
8.62 is greater than the federal minimum wage, so her employer is allowd to reduce her cash
wage to no less than 2.13 per hour
A nonexempt EE works in a state with minumum wage of 7.35 per hour, while living in a state
with a minimum wage of 8.05 what is the rate that must be paid - ANS-7.35 you pay the federal
rate of the state that you work in
If a state sets the minimum wage at a rate greater than the federal minimum wage, the state
minimum wage must be paid to workers in that state. - ANS-true
Tips can be counted towards the employees minimum wage - ANS-True
An employee works 40 hours per week as a fry cook. During the week, she substitues for one of
the waitresses and reports 5 per week in tips. Can her employeer over pay her 2.13 per hour? -
ANS-No - the tip credit can be used to reduce the minimum wage only if the EE regulary
recieves tips and documents recieving more than 30 per month in tips
Employers who provide paid vacation leave must count the hours of PTO when determining if
the EE must recieve an overtime preimum when the total hours worked in a week exceed 40 ? -
ANS-False - PTO doesnt count towards a work week
The FLSA requries immediate payment of an employees final paycheck upon termination -
ANS-False - however, most states impose time limits governing when an employees final
paycheck must be paid to the employee
The FLSA requires that time worked on Saturday be paid at OT rates and time worked on
Sunday be paid at double time rates - ANS-False - OT is determined by 40 hours in a workweek
If a state wage and hour law requires that a nonexempt employee be apid an OT premium when
the EE works more than 8 hours in a day and the EE works the following schedule of
- 5, 7, 6, 8, 10, 8, 6 - ANS-10 hours - he worked 50 hours in a week
Last week a high school teacher spent 40 hours in the classroom, worked 10 hours grading
papers and was required to put in another 8 hours on saturday at the school-sponsored science
fair. Under the FLSA, what overtime hours, if any, must the teacher be paid? - ANS-Time and
one-half for 0 hours - teachers are exempt under the professional exemption. Only non-exempt
EE must be paid OT
What taxes, if any, must be withheld from an employee's pay? - ANS--federal income
-social security
-medicare
-state taxes
-local taxes
What taxes, if any, must be withheld from an independent contractor's pay who provides a TIN?
- ANS-1099 EE who are provided a TIN do not have taxes withheld and must pay them on their
own
Who has the responsibility to determine if the worker is an employee or independent contractor -
ANS-Hiring entity is held responsible even though IRS and SSA lay out guidelines
Prior to beginning work for a company, a chemical engineer signed a contract stating that she
agreed to work as a 1099. She performs all her duties in the company labs, where she has full
access to their testing equiptment. She works under the companys direction and maintains her
regular office hours. What is her status? - ANS-Employee - do not assume that the ER has
fulfilled its responsibilites and is free from penalty simply by having a worker sign a contract
stating he or she is an 1099. Indivduals do not have a right to waive their EE status in a contract
A retired safety inspector for the company was rehired as a consultant when they company
expanded its plant operations. The reitred EE was a natural choice, the tasks he undertook as a
consultant were the same as the ones he performed before retirement. Paid monthly, he has
agreed to work under the direction of his old boss until the new plant facilities are fully
operational. What is his status? - ANS-Employee - consultants are generally treated as
contractors. However, when an ex employee is performing the same or a similar job as before
retirement/termination. It is unlikely that he or she qualifies as a 1099 after termination
A receptionist has agreed to work afternoons at the company until the company can find a
full-time replacement. What is the receoptionist stauts? - ANS-Employee- it doesnt matter if she
is full time or part time.
What are exempt employees exempt from ? - ANS-minimum wage and overtime - they must be
paid a fixed salary for each workweek
All of the following types of employees are classified as exempt from FLSA minimum wage and
overtime requirements except - ANS-computer repairman
A waitress is paid $2.25 per hour and she recieves $255 in tips during the week. She works 40
hours a week. Do you have to alter her base pay ?
, Check: 7.25 x per hour = answer - ANS-2.25 x 40 = 90
90 + 255 = 345
= 8.62 per hour
8.62 is greater than the federal minimum wage, so her employer is allowd to reduce her cash
wage to no less than 2.13 per hour
A nonexempt EE works in a state with minumum wage of 7.35 per hour, while living in a state
with a minimum wage of 8.05 what is the rate that must be paid - ANS-7.35 you pay the federal
rate of the state that you work in
If a state sets the minimum wage at a rate greater than the federal minimum wage, the state
minimum wage must be paid to workers in that state. - ANS-true
Tips can be counted towards the employees minimum wage - ANS-True
An employee works 40 hours per week as a fry cook. During the week, she substitues for one of
the waitresses and reports 5 per week in tips. Can her employeer over pay her 2.13 per hour? -
ANS-No - the tip credit can be used to reduce the minimum wage only if the EE regulary
recieves tips and documents recieving more than 30 per month in tips
Employers who provide paid vacation leave must count the hours of PTO when determining if
the EE must recieve an overtime preimum when the total hours worked in a week exceed 40 ? -
ANS-False - PTO doesnt count towards a work week
The FLSA requries immediate payment of an employees final paycheck upon termination -
ANS-False - however, most states impose time limits governing when an employees final
paycheck must be paid to the employee
The FLSA requires that time worked on Saturday be paid at OT rates and time worked on
Sunday be paid at double time rates - ANS-False - OT is determined by 40 hours in a workweek
If a state wage and hour law requires that a nonexempt employee be apid an OT premium when
the EE works more than 8 hours in a day and the EE works the following schedule of
- 5, 7, 6, 8, 10, 8, 6 - ANS-10 hours - he worked 50 hours in a week
Last week a high school teacher spent 40 hours in the classroom, worked 10 hours grading
papers and was required to put in another 8 hours on saturday at the school-sponsored science
fair. Under the FLSA, what overtime hours, if any, must the teacher be paid? - ANS-Time and
one-half for 0 hours - teachers are exempt under the professional exemption. Only non-exempt
EE must be paid OT
