Payroll Accounting 2025 (36th Edition) by Bernard J. Bieg and Bridget Stomberg — Test Bank for Chapters 1–6 with Practice Questions and Answers

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Test Bank For
Payroll Accounting 2026 36th Edition by Bernard J. Bieg, Bridget Stomberg
Chapter 1-6 Answers are at the End of Each Chapter

Chapter 1

Indicate whether the statement is true or false.

1. Employers not subject to Title VII coverage may come within the scope of the Civil Rights Act by reason of a contract
or subcontract involving federal funds.
a. True
b. False

2. The Self-Employment Contributions Act imposes a tax on the net earnings from self-employment derived by an
individual from any trade or business.
a. True
b. False

3. An exception to the protection that the Age Discrimination in Employment Act provides for all workers over 40
involves executives who are 65 or older and who have held high policy-making positions during the two-year period prior
to retirement.
a. True
b. False

4. The requisition for personnel form is sent to the payroll department so that the new employee can be properly added to
the payroll.
a. True
b. False

5. Workers’ compensation insurance premiums for employers vary according to the different degrees of danger in various
classes of jobs and the employers’ accident experience rate.
a. True
b. False

6. Under the Civil Rights Act of 1964, the U.S. government is classified as an exempt employer.
a. True
b. False

7. Under FMLA, the time off must be used in one uninterrupted period of time.
a. True
b. False

8. Each state imposes an income tax on employees that is 2% of gross wages.
a. True
b. False

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9. The employer is required by the FLSA to display a poster that informs employees of the provisions of the law.
a. True
b. False

10. If an investigative consumer report is being issued, the applicant must be given a written notice that the information
obtained will be used in the employment decision.
a. True
b. False

11. All states have set their minimum wage to be the same as the federal government.
a. True
b. False

12. ERISA provides for full vesting of the employer’s contributions at the end of the fifth year of service or after the third
year of service with another 20% vesting in each subsequent year until full vesting is reached at the end of the 7th year.
a. True
b. False

13. Under ERISA, vesting conveys to employees the right to share in a retirement fund in the event they are terminated
before the normal retirement age.
a. True
b. False

14. Under the Family and Medical Leave Act, employers can exempt an employee who has not worked for the employer
for at least one year and has worked for the company for at least 1,250 hours in the last year.
a. True
b. False

15. There are no states that allow employees to access their personnel files.
a. True
b. False

16. A payroll register lists all employees who have earned remuneration, the amount of remuneration, the deductions, and
the net amount paid for each pay period.
a. True
b. False

17. Under the Federal Personal Responsibility and Work Opportunity Reconciliation Act, every employer is required to
report the name, address, and social security number of each new employee to the appropriate state agency.
a. True
b. False

18. The FLSA imposes no recordkeeping requirements on employers.
a. True
b. False

19. Asking applicants for their arrest records is illegal.
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a. True
b. False

20. Under the Affordable Care Act, employers with 50 or more full-time employees during the previous year are required
to provide health insurance coverage for all full-time employees.
a. True
b. False

21. The amounts needed for the payroll entries in the journal come from the employee’s earnings record.
a. True
b. False

22. The payroll register is a separate payroll record that is kept on each employee.
a. True
b. False

23. Questions pertaining to religion, sex, national origin, or age are allowed on application forms when these are bona fide
occupational qualifications for a job.
a. True
b. False

24. Form I-9 must be completed by each new hire.
a. True
b. False

25. The trend toward outsourcing of payroll operations has weakened in recent years.
a. True
b. False

26. By the use of executive orders, the federal government has banned discrimination in employment on government
contracts.
a. True
b. False

27. In order for the Walsh-Healey Public Contracts Act to protect laborers for contractors who furnish materials to any
agency of the United States, the contract amount must be at least $15,000.
a. True
b. False

28. The FLSA provides health insurance for the aged and disabled (Medicare).
a. True
b. False

29. Employers are now required to photocopy new employees’ Form I-9 documents.
a. True
b. False

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30. The Affordable Care Act does not make a distinction between large and small employers.
a. True
b. False

31. All states have partial-wage-replacement disability programs, that cover injuries away from the worker's place of
employment.
a. True
b. False

32. The Fair Labor Standards Act is commonly known as the Federal Wage and Hour Law.
a. True
b. False

33. Under the Federal Insurance Contributions Act, the Medicare portion of the tax is only paid by the
employer.
a. True
b. False

34. Title VII of the Civil Rights Act protects all employees from arbitrary dismissal.
a. True
b. False

35. One of the provisions of coverage of the Civil Rights Act is that the employer must have 15 or more workers.
a. True
b. False

36. The tax paid to the federal government for unemployment taxes is used for paying state and federal administrative
expenses of the unemployment program.
a. True
b. False

37. Only six states do not impose a state unemployment tax on employers in their state.
a. True
b. False

38. The total cost of workers’ compensation insurance is borne by the employees.
a. True
b. False

39. FUTA was designed to ensure that workers who are covered by pension plans receive benefits from those plans.
a. True
b. False

40. Employment application forms are usually discarded when the applicant is hired.
a. True
b. False
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