Test Bank for Payroll Accounting Exam
1 (9th Edition by Jeanette Landin)
Federal Wage and Hour Law - ANSThe fair labor standards act, is commonly known as the
Enterprise and Individual Employee - ANSThe FLSA provides for two bases of coverage
Enterprise Coverage - ANSa. At least 2 employees engage in interstate commerce or product
goods for interstate commerce.
b. The business has annual gross sales of at least $500,000.
c. Coverage extends without regard to annual sales volume to:
-Hospital
-Nursing Home
-Institute for mentally ill
-School for mentally/physically handicapped/ gifted children
-preschool, elementary, or secondary school
-Institute of higher education
-Public Agency
Individual Employee Coverage - ANSemployee engages in interstate commerce or produces
goods for such commerce.
Employer - ANSFLSA defines as any person acting directly or indirectly in the interest of an
employer in relations to an employee.
Employee - ANShe/she preforms service in a covered employment.
Common-law Relationship - ANSExist when the employer has the right to control both what
work will be done and how it will be done.
Wages Include - ANSThe remuneration or compensation of paid employees.
Wages refer to - ANSRemuneration paid on an hourly or piecework basis.
Salary refers to - ANSRemuneration paid on a weekly, biweekly, semimonthly, monthly, or yearly
basis.
FLSA Minimum Wage of 1983 - ANS.25 per hour
FLSA Minimum Wage of 2007 - ANS7.25 per hour
1 (9th Edition by Jeanette Landin)
Federal Wage and Hour Law - ANSThe fair labor standards act, is commonly known as the
Enterprise and Individual Employee - ANSThe FLSA provides for two bases of coverage
Enterprise Coverage - ANSa. At least 2 employees engage in interstate commerce or product
goods for interstate commerce.
b. The business has annual gross sales of at least $500,000.
c. Coverage extends without regard to annual sales volume to:
-Hospital
-Nursing Home
-Institute for mentally ill
-School for mentally/physically handicapped/ gifted children
-preschool, elementary, or secondary school
-Institute of higher education
-Public Agency
Individual Employee Coverage - ANSemployee engages in interstate commerce or produces
goods for such commerce.
Employer - ANSFLSA defines as any person acting directly or indirectly in the interest of an
employer in relations to an employee.
Employee - ANShe/she preforms service in a covered employment.
Common-law Relationship - ANSExist when the employer has the right to control both what
work will be done and how it will be done.
Wages Include - ANSThe remuneration or compensation of paid employees.
Wages refer to - ANSRemuneration paid on an hourly or piecework basis.
Salary refers to - ANSRemuneration paid on a weekly, biweekly, semimonthly, monthly, or yearly
basis.
FLSA Minimum Wage of 1983 - ANS.25 per hour
FLSA Minimum Wage of 2007 - ANS7.25 per hour
