Test bank For Payroll Accounting 7th
Edition by Alan Dryden
Circular E - ANSAlso known as Publication 15. An employer's tax guide written by the IRS.
Includes due dates for payroll forms, tables to calculate tax withholding, a summary of
regulations, and IRS contact information.
Form SS-4 - ANSUsed to obtain an Employer Identification Number (EIN)
Form SS-5 - ANSUsed to obtain a Social Security number
Personal Responsibility and Work Opportunity Act of 1996 - ANSEnables 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 - ANSIndicates 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 - ANSIntended to reduce illegal employment of
foreign workers in the U.S.
Form I-9 - ANSCompleted 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 - ANSCompares 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 - ANSContains 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? - ANSpay the minimum wage
Which groups of people are exceptions to the federal minimum wage requirement? -
ANSWorkers 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)? - ANSMay 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)? - ANSMay 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? - ANSMay 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? - ANSMay 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? - ANSMay 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? - ANSexecutive, 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 - ANSUnder 14 years of age
Which age group may work a variety of jobs outside of manufacturing and mining, but are
subject to extensive hour limitations?
- Under 14 years of age
- Ages 14 and 15
- Ages 16 and 17 - ANSAges 14 and 15
Which age group may work an unlimited number of hours?
- Under 14 years of age
- Ages 14 and 15
- Ages 16 and 17 - ANSAges 16 and 17
No child under which age may not work in any job classified as hazardous? - ANS17
, How are the premiums for workers' compensation insurance based? - ANSon the relative risk
associated with different job types
How can employers satisfy the requirement for workers' compensation? - ANSBy purchasing it
from a state-operated fund or private insurance carrier, or by becoming authorized by the state
to be self-insured.
Payroll Service - ANSCalculates employee net pay, generates paychecks, completes and files
monthly, quarterly, and annual payroll tax forms. Benefits of use include avoiding potential
penalties with mishandling payroll and reducing the amount of time spent on payroll tasks.
A workweek can differ from a ____ week. - ANSCalendar
The workweek must be ___ from one week to another. It may only be altered if the change is
intended to be permanent and is not made in order to circumvent overtime requirements. -
ANSconsistent
If an employee's state mandates a higher minimum wage than the current federal minimum
wage of $7.25/hour, the employee is required to be paid at least the ____ state rate. -
ANSHigher
Equal Pay Act of 1963 - ANSEnacted mainly to protect female employees and to prevent
companies from payer lower wages to employees of the other gender for a similar job.
Pay disparity is allowed under which circumstances? - ANSa seniority system, a merit system, a
system based on quantity or quality of input, other non-gender-based systems
Salaried employee - ANSpaid annually. Annual salary/52 weeks
Wage-earning employee - ANSpaid on an hourly basis. Regular wage rate x regular hours
worked.
A hospital employee is paid $6.95/hour. Is this compliant or non-compliant with the Fair Labor
Standards Act? - ANSNon-Compliant
A full-time student, who works for a local college, earns $7.20/hour for working four hours per
day, four days a week, during the school year. Is this compliant or non-compliant with the Fair
Labor Standards Act? - ANSCompliant
An administrative (office) employee earns an annual salary which, when divided by total hours
worked during the year, is the equivalent of $6.68/hour. Is this compliant or non-compliant with
the Fair Labor Standards Act? - ANSCompliant
Edition by Alan Dryden
Circular E - ANSAlso known as Publication 15. An employer's tax guide written by the IRS.
Includes due dates for payroll forms, tables to calculate tax withholding, a summary of
regulations, and IRS contact information.
Form SS-4 - ANSUsed to obtain an Employer Identification Number (EIN)
Form SS-5 - ANSUsed to obtain a Social Security number
Personal Responsibility and Work Opportunity Act of 1996 - ANSEnables 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 - ANSIndicates 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 - ANSIntended to reduce illegal employment of
foreign workers in the U.S.
Form I-9 - ANSCompleted 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 - ANSCompares 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 - ANSContains 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? - ANSpay the minimum wage
Which groups of people are exceptions to the federal minimum wage requirement? -
ANSWorkers 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)? - ANSMay 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)? - ANSMay 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? - ANSMay 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? - ANSMay 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? - ANSMay 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? - ANSexecutive, 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 - ANSUnder 14 years of age
Which age group may work a variety of jobs outside of manufacturing and mining, but are
subject to extensive hour limitations?
- Under 14 years of age
- Ages 14 and 15
- Ages 16 and 17 - ANSAges 14 and 15
Which age group may work an unlimited number of hours?
- Under 14 years of age
- Ages 14 and 15
- Ages 16 and 17 - ANSAges 16 and 17
No child under which age may not work in any job classified as hazardous? - ANS17
, How are the premiums for workers' compensation insurance based? - ANSon the relative risk
associated with different job types
How can employers satisfy the requirement for workers' compensation? - ANSBy purchasing it
from a state-operated fund or private insurance carrier, or by becoming authorized by the state
to be self-insured.
Payroll Service - ANSCalculates employee net pay, generates paychecks, completes and files
monthly, quarterly, and annual payroll tax forms. Benefits of use include avoiding potential
penalties with mishandling payroll and reducing the amount of time spent on payroll tasks.
A workweek can differ from a ____ week. - ANSCalendar
The workweek must be ___ from one week to another. It may only be altered if the change is
intended to be permanent and is not made in order to circumvent overtime requirements. -
ANSconsistent
If an employee's state mandates a higher minimum wage than the current federal minimum
wage of $7.25/hour, the employee is required to be paid at least the ____ state rate. -
ANSHigher
Equal Pay Act of 1963 - ANSEnacted mainly to protect female employees and to prevent
companies from payer lower wages to employees of the other gender for a similar job.
Pay disparity is allowed under which circumstances? - ANSa seniority system, a merit system, a
system based on quantity or quality of input, other non-gender-based systems
Salaried employee - ANSpaid annually. Annual salary/52 weeks
Wage-earning employee - ANSpaid on an hourly basis. Regular wage rate x regular hours
worked.
A hospital employee is paid $6.95/hour. Is this compliant or non-compliant with the Fair Labor
Standards Act? - ANSNon-Compliant
A full-time student, who works for a local college, earns $7.20/hour for working four hours per
day, four days a week, during the school year. Is this compliant or non-compliant with the Fair
Labor Standards Act? - ANSCompliant
An administrative (office) employee earns an annual salary which, when divided by total hours
worked during the year, is the equivalent of $6.68/hour. Is this compliant or non-compliant with
the Fair Labor Standards Act? - ANSCompliant
