FPC - Chapter 1 Exam Questions and
Answers
What taxes, if any, must be withheld from an employee's pay? - Answer-Federal income, social security
and Medicare
What taxes, if any, must be withheld from an independent contractor's pay who provides a TIN? -
Answer-No taxes are withheld
Who has the responsibility to determine if the worker is an employee or independent contractor? -
Answer-Employer
Prior to beginning work for a company, a chemical engineer signed a contract stating she agreed to work
as an independent contractor. She performs all her duties in the company laboratories, where she has
full access to the company's testing equipment. She works under the company's direction and maintains
regular office hours. What is her status? - Answer-Employee
A retired safety inspector for the company was rehired as a consultant when the company expanded its
plant operations. The retired employee 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? -
Answer-Employee
, A receptionist has agreed to work afternoons at the company until the company can find a full-time
replacement. What is the receptionist's status? - Answer-Employee
What are exempt employees exempt from? - Answer-minimum wage and overtime
All of the following types of employees are classified as exempt from FLSA's minimum wage and
overtime requirements except: Professional, Outside salesperson, Administrative, Computer repairman.
- Answer-Computer repairman
A waitress is paid $2.25 per hour, and she receives $225.00 in tips during the week. She works 40 hours
per week. Which of the following is true? - Answer-Her employer is allowed to reduce her cash wage to
no less than $2.13 per hour.
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. True or False - Answer-True
A nonexempt employee works in a state with a minimum wage of $7.35 per hour, while living in a state
with a minimum wage of $8.05. What is the minimum rate he must be paid? - Answer-$7.35
Tips can be counted toward the employee's minimum wage. True or False - Answer-True
An employee works 40 hours per week as a fry cook. During the week, she substitutes for one of the
waitresses and reports $5.00 per week in tips. Can her employer pay her $2.13 per hour? Y or N -
Answer-No
Employers who provide paid vacation leave must count the hours of paid time off when determining if
the employee must receive an overtime premium when the total hours worked in a week exceed 40. T
or F - Answer-False
Answers
What taxes, if any, must be withheld from an employee's pay? - Answer-Federal income, social security
and Medicare
What taxes, if any, must be withheld from an independent contractor's pay who provides a TIN? -
Answer-No taxes are withheld
Who has the responsibility to determine if the worker is an employee or independent contractor? -
Answer-Employer
Prior to beginning work for a company, a chemical engineer signed a contract stating she agreed to work
as an independent contractor. She performs all her duties in the company laboratories, where she has
full access to the company's testing equipment. She works under the company's direction and maintains
regular office hours. What is her status? - Answer-Employee
A retired safety inspector for the company was rehired as a consultant when the company expanded its
plant operations. The retired employee 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? -
Answer-Employee
, A receptionist has agreed to work afternoons at the company until the company can find a full-time
replacement. What is the receptionist's status? - Answer-Employee
What are exempt employees exempt from? - Answer-minimum wage and overtime
All of the following types of employees are classified as exempt from FLSA's minimum wage and
overtime requirements except: Professional, Outside salesperson, Administrative, Computer repairman.
- Answer-Computer repairman
A waitress is paid $2.25 per hour, and she receives $225.00 in tips during the week. She works 40 hours
per week. Which of the following is true? - Answer-Her employer is allowed to reduce her cash wage to
no less than $2.13 per hour.
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. True or False - Answer-True
A nonexempt employee works in a state with a minimum wage of $7.35 per hour, while living in a state
with a minimum wage of $8.05. What is the minimum rate he must be paid? - Answer-$7.35
Tips can be counted toward the employee's minimum wage. True or False - Answer-True
An employee works 40 hours per week as a fry cook. During the week, she substitutes for one of the
waitresses and reports $5.00 per week in tips. Can her employer pay her $2.13 per hour? Y or N -
Answer-No
Employers who provide paid vacation leave must count the hours of paid time off when determining if
the employee must receive an overtime premium when the total hours worked in a week exceed 40. T
or F - Answer-False
