Solutions for Payroll Accounting Terms &
Definitions with Answers
Circular E - CORRECT ANSWER ✅✅✅Also 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 - CORRECT ANSWER ✅✅✅Used to obtain an Employer
Identification Number (EIN)
Form SS-5 - CORRECT ANSWER ✅✅✅Used to obtain a Social Security
number
Personal Responsibility and Work Opportunity Act of 1996 - CORRECT ANSWER
✅✅✅Enables 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 - CORRECT ANSWER ✅✅✅Indicates 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 - CORRECT ANSWER
✅✅✅Intended to reduce illegal employment of foreign workers in the U.S.
Form I-9 - CORRECT ANSWER ✅✅✅Completed 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 - CORRECT ANSWER ✅✅✅Compares 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 - CORRECT ANSWER ✅✅✅Contains 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? - CORRECT ANSWER ✅✅✅pay the minimum wage
Which groups of people are exceptions to the federal minimum wage
requirement? - CORRECT ANSWER ✅✅✅Workers 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)? -
CORRECT ANSWER ✅✅✅May 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)? -
CORRECT ANSWER ✅✅✅May 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? - CORRECT ANSWER
✅✅✅May 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? - CORRECT ANSWER ✅✅✅May 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? - CORRECT
ANSWER ✅✅✅May 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? - CORRECT ANSWER
✅✅✅executive, 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 - CORRECT ANSWER ✅✅✅Under 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 - CORRECT ANSWER ✅✅✅Ages 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 - CORRECT ANSWER ✅✅✅Ages 16 and 17
No child under which age may not work in any job classified as hazardous? -
CORRECT ANSWER ✅✅✅17
How are the premiums for workers' compensation insurance based? -
CORRECT ANSWER ✅✅✅on the relative risk associated with different job
types
How can employers satisfy the requirement for workers' compensation? -
CORRECT ANSWER ✅✅✅By purchasing it from a state-operated fund or
private insurance carrier, or by becoming authorized by the state to be self-
insured.
Payroll Service - CORRECT ANSWER ✅✅✅Calculates 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. - CORRECT ANSWER
✅✅✅Calendar
Definitions with Answers
Circular E - CORRECT ANSWER ✅✅✅Also 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 - CORRECT ANSWER ✅✅✅Used to obtain an Employer
Identification Number (EIN)
Form SS-5 - CORRECT ANSWER ✅✅✅Used to obtain a Social Security
number
Personal Responsibility and Work Opportunity Act of 1996 - CORRECT ANSWER
✅✅✅Enables 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 - CORRECT ANSWER ✅✅✅Indicates 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 - CORRECT ANSWER
✅✅✅Intended to reduce illegal employment of foreign workers in the U.S.
Form I-9 - CORRECT ANSWER ✅✅✅Completed 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 - CORRECT ANSWER ✅✅✅Compares 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 - CORRECT ANSWER ✅✅✅Contains 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? - CORRECT ANSWER ✅✅✅pay the minimum wage
Which groups of people are exceptions to the federal minimum wage
requirement? - CORRECT ANSWER ✅✅✅Workers 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)? -
CORRECT ANSWER ✅✅✅May 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)? -
CORRECT ANSWER ✅✅✅May 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? - CORRECT ANSWER
✅✅✅May 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? - CORRECT ANSWER ✅✅✅May 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? - CORRECT
ANSWER ✅✅✅May 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? - CORRECT ANSWER
✅✅✅executive, 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 - CORRECT ANSWER ✅✅✅Under 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 - CORRECT ANSWER ✅✅✅Ages 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 - CORRECT ANSWER ✅✅✅Ages 16 and 17
No child under which age may not work in any job classified as hazardous? -
CORRECT ANSWER ✅✅✅17
How are the premiums for workers' compensation insurance based? -
CORRECT ANSWER ✅✅✅on the relative risk associated with different job
types
How can employers satisfy the requirement for workers' compensation? -
CORRECT ANSWER ✅✅✅By purchasing it from a state-operated fund or
private insurance carrier, or by becoming authorized by the state to be self-
insured.
Payroll Service - CORRECT ANSWER ✅✅✅Calculates 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. - CORRECT ANSWER
✅✅✅Calendar
