Fpc module 1 UPDATED ACTUAL Exam
Questions and CORRECT Answers
Who uses economic realities factors? - CORRECT ANSWER - THE DOL USES THE
ECONOMIC REALITIES FACTORS TO DETERMINE IF A WORKER IS AN EMPLOYEE
OR AN INDEPENDENT CONTRACTOR UNDER THE "TO SUFFER OR PERMIT TO
WORK" CONCEPT.
What does an exempt w-4 mean? - CORRECT ANSWER - When an employee submits an
exempt form W-4, the employee will have no income tax withheld for the remainder of the year.
Exempt w-4s expire on February 15th of the year after it's submitted
Administrative employee's duties are: - CORRECT ANSWER - Performing non manual or
office work directly related to management of business operations of the employer or customers
Traits of an employee - CORRECT ANSWER - Has taxes withheld from wages,
reimbursed expenses, complied with employer's instructions about when, where, and how to
work, work is done personally, performs services under company's name
What is a workweek? - CORRECT ANSWER - A WORKWEEK CONSISTS OF 7
CONSECUTIVE 24-HOUR PERIODS A 168 HOUR PERIOD. EMPLOYERS SET WHEN A
WORKWEEK BEGINS. WORKWEEKS ARE INTENDED TO BE PERMANENT BUT CAN
BE CHANGED WHEN A BUSINESS NEED OCCURS.
What is Form W-4? - CORRECT ANSWER - Form W-4 employees withholding
allowance certificate, is used by employees to provide their employer their name, address, SSN,
marital status and allowances. It may also indicate exempt status
What is E-verify? - CORRECT ANSWER - E-verify is an online tool that allows
verification of a new hire's identity and eligibility to work in the U.S. government contractors
and employers in some states are required to use e-verify
, What is excluded from regular rate of pay? - CORRECT ANSWER - gifts, reimbursed
expenses, PTO, stock options, discretionary bonuses, and overtime premiums in excess of the
prem. required by the FLSA are not included in the regular rate of pay
Child labor under age 18: - CORRECT ANSWER - Restricts minors under the age of 18
from working in a job that has been declared hazardous by the DOL
When is an amended W-4 implemented? - CORRECT ANSWER - When an employee
submits an amended form w-4, it must be implemented with the first payroll no later than 30
days after the form is submitted.
What is a nondiscretionary bonus? - CORRECT ANSWER - A nondiscretionary bonus is a
contractual or agreed-upon bonus or incentive. Nondiscretionary bonuses paid to nonexempt
employees are included in the regular rate of pay in the week earned.
Child labor age 14 & 15 - CORRECT ANSWER - Child labor laws allow 14 & 15 years
olds to work 3 hours a day and 18 hours a week while school is in session and 8 hours a day and
40 hours a week when school is not in session.
Employees are covered under FLSA by: - CORRECT ANSWER - Employees are covered
by the FLSA under either the enterprise coverage test or the individual employee coverage test.
What does FLSA cover? - CORRECT ANSWER - The FLSA sets minimum wage,
overtime requirements, child labor rules, and equal pay rules.
Child labor rues under age 14: - CORRECT ANSWER - Child labor laws generally
prohibit employment of minors under age 14, unless the minor works for a parent or in some
situations, actors, batboys, or girls and ballboys or girls.
What is form SS-8 - CORRECT ANSWER - Form SS- 8, determination of worker status
for purposes of federal employment taxes and income tax withholding, is filed with the IRS to
obtain a determination of a worker's status.
Questions and CORRECT Answers
Who uses economic realities factors? - CORRECT ANSWER - THE DOL USES THE
ECONOMIC REALITIES FACTORS TO DETERMINE IF A WORKER IS AN EMPLOYEE
OR AN INDEPENDENT CONTRACTOR UNDER THE "TO SUFFER OR PERMIT TO
WORK" CONCEPT.
What does an exempt w-4 mean? - CORRECT ANSWER - When an employee submits an
exempt form W-4, the employee will have no income tax withheld for the remainder of the year.
Exempt w-4s expire on February 15th of the year after it's submitted
Administrative employee's duties are: - CORRECT ANSWER - Performing non manual or
office work directly related to management of business operations of the employer or customers
Traits of an employee - CORRECT ANSWER - Has taxes withheld from wages,
reimbursed expenses, complied with employer's instructions about when, where, and how to
work, work is done personally, performs services under company's name
What is a workweek? - CORRECT ANSWER - A WORKWEEK CONSISTS OF 7
CONSECUTIVE 24-HOUR PERIODS A 168 HOUR PERIOD. EMPLOYERS SET WHEN A
WORKWEEK BEGINS. WORKWEEKS ARE INTENDED TO BE PERMANENT BUT CAN
BE CHANGED WHEN A BUSINESS NEED OCCURS.
What is Form W-4? - CORRECT ANSWER - Form W-4 employees withholding
allowance certificate, is used by employees to provide their employer their name, address, SSN,
marital status and allowances. It may also indicate exempt status
What is E-verify? - CORRECT ANSWER - E-verify is an online tool that allows
verification of a new hire's identity and eligibility to work in the U.S. government contractors
and employers in some states are required to use e-verify
, What is excluded from regular rate of pay? - CORRECT ANSWER - gifts, reimbursed
expenses, PTO, stock options, discretionary bonuses, and overtime premiums in excess of the
prem. required by the FLSA are not included in the regular rate of pay
Child labor under age 18: - CORRECT ANSWER - Restricts minors under the age of 18
from working in a job that has been declared hazardous by the DOL
When is an amended W-4 implemented? - CORRECT ANSWER - When an employee
submits an amended form w-4, it must be implemented with the first payroll no later than 30
days after the form is submitted.
What is a nondiscretionary bonus? - CORRECT ANSWER - A nondiscretionary bonus is a
contractual or agreed-upon bonus or incentive. Nondiscretionary bonuses paid to nonexempt
employees are included in the regular rate of pay in the week earned.
Child labor age 14 & 15 - CORRECT ANSWER - Child labor laws allow 14 & 15 years
olds to work 3 hours a day and 18 hours a week while school is in session and 8 hours a day and
40 hours a week when school is not in session.
Employees are covered under FLSA by: - CORRECT ANSWER - Employees are covered
by the FLSA under either the enterprise coverage test or the individual employee coverage test.
What does FLSA cover? - CORRECT ANSWER - The FLSA sets minimum wage,
overtime requirements, child labor rules, and equal pay rules.
Child labor rues under age 14: - CORRECT ANSWER - Child labor laws generally
prohibit employment of minors under age 14, unless the minor works for a parent or in some
situations, actors, batboys, or girls and ballboys or girls.
What is form SS-8 - CORRECT ANSWER - Form SS- 8, determination of worker status
for purposes of federal employment taxes and income tax withholding, is filed with the IRS to
obtain a determination of a worker's status.
