FPC: Payroll Fundamentals - Questions With
Proven Solutions
Payroll Challenges Correct Answer - Complexity,
communication, technology, accuracy
Common Law Test Correct Answer - Test that measures the
control/direction that an ER has the authority to exercise over a
worker; where ER has right to direct the worker as to how, where,
and when the work will be completed, in addition to controlling the
result of the work
Reasonable Basis Test Correct Answer - Standard used to
determine whether and employee can be treated as a 1099 whether
or not the CLT is met
These workers are classified as NEITHER a W2 or 1099 Correct
Answer - Temporary service agencies, leasing companies or
PEO's
Immigration Reform and Control Act (IRCA) Correct Answer -
Requires employer's to verify an employee's eligibility to work in
the USA
Employer Sanctions Correct Answer - illegal to hire/recruit
aliens, including temp agencies
Antidiscrimination Correct Answer - Law prohibiting
discrimination in hiring/recruiting
Social Security Administration (SSA) Correct Answer - This
agency encourages the employer's verify employee's name/SSN on
, W4 as part of the hiring process for tax withholding and reporting
purposes
Form SS-5 Correct Answer - Application for a Social Security
Card; form can be used to request a SSC
Fair Labor Standards Act Correct Answer - Establishes
minimum wage, overtime pay, record keeping, and youth
employement standards affecting employee's in the private sector
and in federal/state/local governments
Minimum Wage Correct Answer - $7.25
Exempt Employees Correct Answer - Employee's who meet
certain criteria are not subject to minimum wage, OT, and some
record keeping regulations; minimum weekly salary is $455
Exempt Employee Examples Correct Answer - Executives;
Administrative employee's; Professionals; Outside Sales People
Federal Minimum Wage Correct Answer - This minimum wage
applies to hourly compensation not net pay
Tip Credit Correct Answer - Amount presented by customers
as a gift/gratuity; Credit can be applied to lower EE hourly rate
ONLY if EE regularly receives more than $30/month
Shift Premiums Correct Answer - Additional pay provided for
working split shifts or evening and night shift; those eligible have
majority of hours scheduled between 6pm and 6am
Paid Time Off Correct Answer - Either accrue 1 hour for every
30 hours worked or flat 56 hours; FLSA does not require pay for
hours not worked
Proven Solutions
Payroll Challenges Correct Answer - Complexity,
communication, technology, accuracy
Common Law Test Correct Answer - Test that measures the
control/direction that an ER has the authority to exercise over a
worker; where ER has right to direct the worker as to how, where,
and when the work will be completed, in addition to controlling the
result of the work
Reasonable Basis Test Correct Answer - Standard used to
determine whether and employee can be treated as a 1099 whether
or not the CLT is met
These workers are classified as NEITHER a W2 or 1099 Correct
Answer - Temporary service agencies, leasing companies or
PEO's
Immigration Reform and Control Act (IRCA) Correct Answer -
Requires employer's to verify an employee's eligibility to work in
the USA
Employer Sanctions Correct Answer - illegal to hire/recruit
aliens, including temp agencies
Antidiscrimination Correct Answer - Law prohibiting
discrimination in hiring/recruiting
Social Security Administration (SSA) Correct Answer - This
agency encourages the employer's verify employee's name/SSN on
, W4 as part of the hiring process for tax withholding and reporting
purposes
Form SS-5 Correct Answer - Application for a Social Security
Card; form can be used to request a SSC
Fair Labor Standards Act Correct Answer - Establishes
minimum wage, overtime pay, record keeping, and youth
employement standards affecting employee's in the private sector
and in federal/state/local governments
Minimum Wage Correct Answer - $7.25
Exempt Employees Correct Answer - Employee's who meet
certain criteria are not subject to minimum wage, OT, and some
record keeping regulations; minimum weekly salary is $455
Exempt Employee Examples Correct Answer - Executives;
Administrative employee's; Professionals; Outside Sales People
Federal Minimum Wage Correct Answer - This minimum wage
applies to hourly compensation not net pay
Tip Credit Correct Answer - Amount presented by customers
as a gift/gratuity; Credit can be applied to lower EE hourly rate
ONLY if EE regularly receives more than $30/month
Shift Premiums Correct Answer - Additional pay provided for
working split shifts or evening and night shift; those eligible have
majority of hours scheduled between 6pm and 6am
Paid Time Off Correct Answer - Either accrue 1 hour for every
30 hours worked or flat 56 hours; FLSA does not require pay for
hours not worked
