PAYROLL FUNDAMENTALS RELIABLE EXAM QUESTIONS
WITH ANSWERS 2025/2026 GRADED A+
Under IRS rules, employees are requires to complete a new form W-4 when their
allowance decrease or their martial status changes from married to single. The adoption
of a child would increase an employees allowances. - TRUE
A retired school principal who has started a consulting fim has agreed to be the interim
principal for a local high school. What is the worker's employment status? - employee
When a company has the right to control a workers work under the common Law test,
the worker is an employee. The common law test is defined by the IRS as behavioural
control, finacial control, and the relationship of the parties. - TRUE
Under the FLSA, generally what is the mimnim age a child may be employed? - 14
AN administrative assistant paid beweekly works 35 hours one week and 50 hours the
next. Under the FLSA , how many hours o overtime must the assistant be paid for the
pay period? - 10
an employee submits an amended form w-4 on January 2 . Which statement is ture?
The previous form W-4 is retained for four years after the date the last tax form was
filed. - TRUE
an employee submits an amended form w-4 on January 2 . Which statement is ture?
The employer must retain the new from W-4 for four years from the date it is submitted.
- FALSE
an employee submits an amended form w-4 on January 2 . Which statement is ture?
The employer may discard the previous form W-4 immediatley - FALSE
an employee submits an amended form w-4 on January 2 . Which statement is ture?
The previous from W-4 is retained for six years after the date the last tax form was filed.
- FALSE
When a nonexempt employee works in a state with an overtime requirement that is
more beneficial than the FLSA's 40 hour in a workweek requirement, the state rule must
be used when calculating overtime. For example, if a state requires overtime when a
nonexempt employee works more than 8 hours in a day, the state rule must be used
when calculating overtime. - TRUE
"If a state wage and hour law requires an employee be paid an overtime premium when
the employee works more than 8 hours in a day and the employee works the following
schedule, calculate the employee's overtime hours. : Sunday6 Monday9 Tuesday9
Wednesday9 Thursday10 Friday7 Saturday6" - 16
,A hospital employee working under the 8/80 provision works 5 days, 8 hours a day in
the first week and 4 days at 10 hours a day in the second week. Calculate the overtime
hours, if any, the employee must be paid. - 8
A hospital employee working under the 8/80 provision must be paid overtime for
working hours over 8 in a day or 80 in the 14 day period. Even though the employee
has worked 80 hours in the two week period, 8 hours of overtime is due for the four
days when the employee worked more than 8 hours a day - TRUE
"All of the following provisions are a part of the Fair Labor Standards Act EXCEPT:
1.overtime provisions.
2.classification of exempt or nonexempt employees.
3.minimum wage.
4.eligibility for employment in the U.S - 4
The FLSA regulates overtime, minimum wage, child labor, and equal pay. - TRUE
The FLSA, does not define when a workweek starts. It may start on any day at any time
based on the business' requirements. The workweek must include seven consecutive
24-hour periods. - TRUE
The FLSA defines regular rate of pay as the total regular pay for all hours work divided
by the hours worked in the workweek. The FLSA exempts the following types of pay
from the regular rate of pay - gifts, paid time off, reimbursed expenses, discretionary
bonuses, benefit plan contributions, and others - TRUE
"Under the FLSA, the calculation of a nonexempt employee's regular rate of pay must
include: - 1. discretionary bonuses.
2. - reimbursed expenses.
3. - premiums paid for working on holidays.
4. - shift premiums." 4
Employees can file an exempt Form W-4 when they had no tax liability last year and
expect to have no tax liability this year. - TRUE
"Employees can file an exempt Form W-4 when they:1. - expect to owe no taxes this
year.
2. - had no tax liability last year and expect to have no tax liability this year.
3. - do not want taxes withheld this year.
4. - owed taxes last year and expect to owe taxes this year" 2
,"Which of the following workers is classified as an exempt employee? 1. - A laboratory
assistant responsible for duties which are reviewed by the supervisor
2. - A trainee soliciting orders for the company's products
3. - A payroll technician inputting timecards
4. - A corporate attorney litigating damage suits" 4
An exempt employee must meet the FLSA's duties and salary requirements. - TRUE
Under the FLSA, what is the minimum hourly rate an employer can pay a tipped
employee working 30 hours a week and receiving $400.00 a week in tips? - 2.13
Under the FLSA, the minimum hourly rate an employer can pay a tipped employee is
$2.13 per hour as long as the employee's cash wages and tips are equal to or greater
than $7.25 times the hours worked in the workweek - TRUE
The FLSA requires employers to pay employees $7.25 for each hour worked in the
workweek. - TRUE
"All of the following situations satisfy federal minimum wage requirements as of January
1, 2019, EXCEPT: 1. - a security guard paid $7.25 per hour.
2. - a part-time payroll clerk paid $150.00 for working 20 hours a week.
3. - an employee with ten years of seniority receives the federal minimum wage.
4. - a dishwasher paid $7.05 per hour." 4
An employer paying employees less than $6.60 per hour on a workweek basis are NOT
complying with federal minimum wage requirements. There are exceptions to the
general rules for employees under age 20 for their first 90 calendar days of employment
may be paid $4.25 per hour and tipped employees meeting certain conditions may be
paid $2.13 per hour in cash wages when tips bring the tipped employee's wages to
$7.25 per hour. - TRUE
"All of the following situations satisfy federal minimum wage requirements, EXCEPT: 1.
- a part-time employee is paid $6.60 per hour.
2. - a part-time employee is paid $166.50 for working 18 hours.
3. - an employee, age 18, is paid $232.00 for working 32 hours in his first week on the
job.
, 4. - an employee, after working for the employer for ten years, receives the minimum
wage." 1
The employee's exempt Form W-4 expires on February 15, 2020. - TRUE
"An employee was hired in April 2019 and filed an exempt Form W-4. The employee's
Form W-4 expires on: a. - December 1, 2019.
b. - December 31, 2019.
c. - February 15, 2020.
d. - April 15, 2020." c
"Under the FLSA, a nonexempt employee's regular rate of pay includes all of the
following EXCEPT: 1. - reimbursed expenses.
2. - cost-of-living adjustments.
3. - nondiscretionary bonuses.
4. - shift premiums." 1
The FLSA defines regular rate of pay as the total regular pay for all hours work divided
by the hours worked in the workweek. The FLSA exempts the following types of pay
from the regular rate of pay - gifts, paid time off, reimbursed expenses, discretionary
bonuses, benefit plan contributions, and others. - TRUE
Under the FLSA, an employer may establish one workweeks required for its business
requirements. It may have one workweek for clerical employees and another for
assembly workers. - TRUE
"Under the FLSA, which of the following statements is true?1. - Employers must pay
overtime for hours worked on federal holidays.
2. - Employers must pay overtime when employees work more than eight hours in a
workday.
3. - An employer may establish one workweek for clerical employees and another for
assembly workers.
4. - An employer's workweek must coincide with the calendar week.
"-3
WITH ANSWERS 2025/2026 GRADED A+
Under IRS rules, employees are requires to complete a new form W-4 when their
allowance decrease or their martial status changes from married to single. The adoption
of a child would increase an employees allowances. - TRUE
A retired school principal who has started a consulting fim has agreed to be the interim
principal for a local high school. What is the worker's employment status? - employee
When a company has the right to control a workers work under the common Law test,
the worker is an employee. The common law test is defined by the IRS as behavioural
control, finacial control, and the relationship of the parties. - TRUE
Under the FLSA, generally what is the mimnim age a child may be employed? - 14
AN administrative assistant paid beweekly works 35 hours one week and 50 hours the
next. Under the FLSA , how many hours o overtime must the assistant be paid for the
pay period? - 10
an employee submits an amended form w-4 on January 2 . Which statement is ture?
The previous form W-4 is retained for four years after the date the last tax form was
filed. - TRUE
an employee submits an amended form w-4 on January 2 . Which statement is ture?
The employer must retain the new from W-4 for four years from the date it is submitted.
- FALSE
an employee submits an amended form w-4 on January 2 . Which statement is ture?
The employer may discard the previous form W-4 immediatley - FALSE
an employee submits an amended form w-4 on January 2 . Which statement is ture?
The previous from W-4 is retained for six years after the date the last tax form was filed.
- FALSE
When a nonexempt employee works in a state with an overtime requirement that is
more beneficial than the FLSA's 40 hour in a workweek requirement, the state rule must
be used when calculating overtime. For example, if a state requires overtime when a
nonexempt employee works more than 8 hours in a day, the state rule must be used
when calculating overtime. - TRUE
"If a state wage and hour law requires an employee be paid an overtime premium when
the employee works more than 8 hours in a day and the employee works the following
schedule, calculate the employee's overtime hours. : Sunday6 Monday9 Tuesday9
Wednesday9 Thursday10 Friday7 Saturday6" - 16
,A hospital employee working under the 8/80 provision works 5 days, 8 hours a day in
the first week and 4 days at 10 hours a day in the second week. Calculate the overtime
hours, if any, the employee must be paid. - 8
A hospital employee working under the 8/80 provision must be paid overtime for
working hours over 8 in a day or 80 in the 14 day period. Even though the employee
has worked 80 hours in the two week period, 8 hours of overtime is due for the four
days when the employee worked more than 8 hours a day - TRUE
"All of the following provisions are a part of the Fair Labor Standards Act EXCEPT:
1.overtime provisions.
2.classification of exempt or nonexempt employees.
3.minimum wage.
4.eligibility for employment in the U.S - 4
The FLSA regulates overtime, minimum wage, child labor, and equal pay. - TRUE
The FLSA, does not define when a workweek starts. It may start on any day at any time
based on the business' requirements. The workweek must include seven consecutive
24-hour periods. - TRUE
The FLSA defines regular rate of pay as the total regular pay for all hours work divided
by the hours worked in the workweek. The FLSA exempts the following types of pay
from the regular rate of pay - gifts, paid time off, reimbursed expenses, discretionary
bonuses, benefit plan contributions, and others - TRUE
"Under the FLSA, the calculation of a nonexempt employee's regular rate of pay must
include: - 1. discretionary bonuses.
2. - reimbursed expenses.
3. - premiums paid for working on holidays.
4. - shift premiums." 4
Employees can file an exempt Form W-4 when they had no tax liability last year and
expect to have no tax liability this year. - TRUE
"Employees can file an exempt Form W-4 when they:1. - expect to owe no taxes this
year.
2. - had no tax liability last year and expect to have no tax liability this year.
3. - do not want taxes withheld this year.
4. - owed taxes last year and expect to owe taxes this year" 2
,"Which of the following workers is classified as an exempt employee? 1. - A laboratory
assistant responsible for duties which are reviewed by the supervisor
2. - A trainee soliciting orders for the company's products
3. - A payroll technician inputting timecards
4. - A corporate attorney litigating damage suits" 4
An exempt employee must meet the FLSA's duties and salary requirements. - TRUE
Under the FLSA, what is the minimum hourly rate an employer can pay a tipped
employee working 30 hours a week and receiving $400.00 a week in tips? - 2.13
Under the FLSA, the minimum hourly rate an employer can pay a tipped employee is
$2.13 per hour as long as the employee's cash wages and tips are equal to or greater
than $7.25 times the hours worked in the workweek - TRUE
The FLSA requires employers to pay employees $7.25 for each hour worked in the
workweek. - TRUE
"All of the following situations satisfy federal minimum wage requirements as of January
1, 2019, EXCEPT: 1. - a security guard paid $7.25 per hour.
2. - a part-time payroll clerk paid $150.00 for working 20 hours a week.
3. - an employee with ten years of seniority receives the federal minimum wage.
4. - a dishwasher paid $7.05 per hour." 4
An employer paying employees less than $6.60 per hour on a workweek basis are NOT
complying with federal minimum wage requirements. There are exceptions to the
general rules for employees under age 20 for their first 90 calendar days of employment
may be paid $4.25 per hour and tipped employees meeting certain conditions may be
paid $2.13 per hour in cash wages when tips bring the tipped employee's wages to
$7.25 per hour. - TRUE
"All of the following situations satisfy federal minimum wage requirements, EXCEPT: 1.
- a part-time employee is paid $6.60 per hour.
2. - a part-time employee is paid $166.50 for working 18 hours.
3. - an employee, age 18, is paid $232.00 for working 32 hours in his first week on the
job.
, 4. - an employee, after working for the employer for ten years, receives the minimum
wage." 1
The employee's exempt Form W-4 expires on February 15, 2020. - TRUE
"An employee was hired in April 2019 and filed an exempt Form W-4. The employee's
Form W-4 expires on: a. - December 1, 2019.
b. - December 31, 2019.
c. - February 15, 2020.
d. - April 15, 2020." c
"Under the FLSA, a nonexempt employee's regular rate of pay includes all of the
following EXCEPT: 1. - reimbursed expenses.
2. - cost-of-living adjustments.
3. - nondiscretionary bonuses.
4. - shift premiums." 1
The FLSA defines regular rate of pay as the total regular pay for all hours work divided
by the hours worked in the workweek. The FLSA exempts the following types of pay
from the regular rate of pay - gifts, paid time off, reimbursed expenses, discretionary
bonuses, benefit plan contributions, and others. - TRUE
Under the FLSA, an employer may establish one workweeks required for its business
requirements. It may have one workweek for clerical employees and another for
assembly workers. - TRUE
"Under the FLSA, which of the following statements is true?1. - Employers must pay
overtime for hours worked on federal holidays.
2. - Employers must pay overtime when employees work more than eight hours in a
workday.
3. - An employer may establish one workweek for clerical employees and another for
assembly workers.
4. - An employer's workweek must coincide with the calendar week.
"-3
