CHAPTER 8 - PAYROLL ACCOUNTING: EMPLOYEE EARNINGS AND DEDUCTIONS EXAM QUESTIONS AND ANSWERS 100% CORRECT!!!

Employee - ANSWER Someone who works for an employer. Employee earnings record - ANSWER A separate record of each employee's earnings. Fair Labor Standards Act (FLSA) - ANSWER A law that requires employers to pay overtime at 1 1/2 times the regular rate to any hourly employee who works over 40 hours in a week. FICA Taxes - ANSWER Payroll taxes withheld to provide Social Security and Medicare benefits Gross pay - ANSWER An employee's total earnings Independent contractor - ANSWER Someone who performs a service for a fee and does not work under the control and direction of the company paying for the service. Manual system - ANSWER payroll system in which all records are prepared by hand Net pay - ANSWER Gross pay less mandatory and voluntary deductions. Payroll processing center - ANSWER A business that sells payroll record-keeping services. W