PAYROLL ACCOUNTING 35TH EDITION EXAM
QUESTIONS AND SOLUTIONS GRADED A+
◉ 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
QUESTIONS AND SOLUTIONS GRADED A+
◉ 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
