Payroll Accounting Chapter 1 Exam 33 Questions with Verified Answers,100% CORRECT

Payroll Accounting Chapter 1 Exam 33 Questions with Verified Answers The Civil Rights Act of 1964 a. does not apply to labor unions. b. forbids employers to discriminate in hiring, firing, promoting or compensating on the basis of race. c. requires complaints to be filed first with the Equal Employment Opportunity Commission. d. protects employees from arbitrary treatment or dismissal. - CORRECT ANSWER b. forbids employers to discriminate in hiring, firing, promoting or compensating on the basis of race. The Age Discrimination in Employment Act (ADEA) a. protects all workers over 30. b. provides employment protection for workers over 40. c. forces workers to retire at age 65. d. requires older employees to fund retirement programs. - CORRECT ANSWER b. provides employment protection for workers over 40. The American Payroll Association (APA) a. requires members to have at least a Bachelor's degree. b. awards the Certified Payroll Professional certificate to those who pass an exam. c. is open only to payroll managers d. requires members to be Certified Public Accountants (CPA's). - CORRECT ANSWER b. awards the Certified Payroll Professional certificate to those who pass an exam. The Federal Wage and Hour law, also known as the Fair Labor StandarD. Act (FLSA) a. sets up minimum wage and overtime pay requirements. b. requires the identification of the age of the employee. c. requires a 40 hour work week for employees age 21 and older. d. requires the employer to withhold taxes from employee wages. - CORRECT ANSWER a. sets up minimum wage and overtime pay requirements. The Federal Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA) a. requires employers to withhold back child support payments. b. requires employers to report the name, address and social security number of new employees within 20 days of hire. c. prevents employers from hiring employees who owe back child support. d. was established to insure payment of alimony to divorced spouses. - CORRECT ANSWER b. requires employers to report the name, address and social security number of new employees within 20 days of hire. The Family and Medical Leave Act of 1993 (FMLA) a. requires employers to offer 12 weeks of unpaid leave in cases of childbirth. b. may exempt employees that have worked for the employer 10 years or more. c. requires employers to offer 12 weeks of paid leave in case of serious injury or illness of employee's spouse. d. is not applicable to employers with greater than 100 employees. - CORRECT ANSWER a. requires employers to offer 12 weeks of unpaid leave in cases of childbirth. An employment application should proviD. information on all of the following except a. education b. social security number c. name and address d. gender - CORRECT ANSWER d. gender Worker's Compensation Insurance a. is paid by the employer except in Montana and New Mexico. b. requires employers to set aside funds to pay injured workers their regular salary. c. premiums vary according to the pay rate and the type of work involved. d. requires workers in risky occupations to purchase Worker's Compensation Insurance. - CORRECT ANSWER c. premiums vary according to the pay rate and the type of work involved. The Immigration Reform and Control Act of 1986 (IRCA) a. requires employees to furnish proof of eligibility to work in the United States. b. prohibits aliens from working in the United States. c. is waived when military service has been completed. d. requires employers to keep proof of eligibility to work in the United States for as long as the employee is working for the company. - CORRECT ANSWER a. requires employees to furnish proof of eligibility to work in the United States. The Federal Insurance Contributions Act (FICA) a. requires employers to use specific FICA forms that can be downloaded from the World Wide Web. b. levies a tax on both the employer and employee. c. provides supplemental medical insurance for employees. d. does not include self-employed individuals. - CORRECT ANSWER b. levies a tax on both the employer and employee. Membership in the American Payroll Association (APA) a. is only open to payroll professionals with three years experience. b. offers a free examination for payroll professionals to prove their expertise. c. is required to work in the payroll profession. d. is open to anyone interested in, or is engaged in the support of payroll accounting. - CORRECT ANSWER d. is open to anyone interested in, or is engaged in the support of payroll accounting. Reference inquiries a. are required by the Immigration Reform and Control Act (IRCA). b. release the company from discrimination liability. c. are often given only a cursory glance by human resource personnel. d. should only be done by telephone. - CORRECT ANSWER c. are often given only a cursory glance by human resource personnel. Outsourcing payroll a. can lead to an increase in quality, efficiency and speed of payroll processing. b. requires a great deal of paperwork between the company and the payroll processor. c. is quite expensive for most small to mid-size companies. d. results in inefficiencies in payroll processing. - CORRECT ANSWER a. can lead to an increase in quality, efficiency and speed of payroll processing. An Employee's Earnings Record a. contains the payroll record of each individual employee. b. is a multi-column form used to assemble and summarize the data needed at the end of each payroll period. c. is used as the reference source to record payroll records into the general ledger. d. lists all of the employees who earned remuneration during that pay period. - CORRECT ANSWER a. contains the payroll record of each individual employee. The payroll register a. is prepared by all employers employing 20 or more workers. b. is required by the Federal Insurance Contributions Act (FICA). c. is used as the primary input into the payroll system. d. is used to assemble and summarize payroll data. - CORRECT ANSWER d. is used to assemble and summarize payroll data. Military Personnel a. have a right to take leaves of absences from their civilian jobs without any loss of seniority. b. must be paid their full rate of civilian pay when leaving a job for the military. c. must be compensated for the difference between their civilian pay and their military pay. d. can be terminated from their civilian employer when called to active duty. - CORRECT ANSWER a. have a right to take leaves of absences from their civilian jobs without any loss of seniority. The Civil Rights Act of 1991 a. grants compensatory and punitive damages in cases where discrimination is intentional.. b. requires U.S. citizenship to be hired by federal contractors. c. requires the hiring of older workers. d. prohibits discrimination on the basis of age. - CORRECT ANSWER a. grants compensatory and punitive damages in cases where discrimination is intentional.. An employer can legally pay a women different wages than a man based on the nature of the work. True False - CORRECT ANSWER True Federal Unemployment taxes (FUTA) are used to pay benefits to unemployed workers. True False - CORRECT ANSWER False Income tax can only be withheld by the Federal government. True False - CORRECT ANSWER False The Employee Retirement Income Security Act of 1974 requires employers to establish a pension plan for employees. True False - CORRECT ANSWER False An employer refusing to hire a 16-year-old is considered age discrimination. True False - CORRECT ANSWER False An employee must be a United States citizen in order to work in the United States. True False - CORRECT ANSWER False Under the Family and Medical Leave Act of 1993, employers are required to offer 12 weeks of unpaid leave in case of childbirth. True False - CORRECT ANSWER True Because the payroll and human resource systems share much information, there is a trend to place payroll under the control of the Human Resources Director rather than the Controller. True False - CORRECT ANSWER True New employees must fill out a W-2 statement to indicate how much their employer should withhold for taxes. True False - CORRECT ANSWER False When employees are covered by both federal and state minimum wage laws, the federal rate should be followed. True False - CORRECT ANSWER False The Federal Government uses monies collected under the Federal Unemployment Tax Act (FUTA) to pay benefits to unemployed workers. True False - CORRECT ANSWER False The Immigration Reform and Control Act of 1986 (IRCA) bars employers from hiring and retaining aliens unauthorized to work in the United States. True False - CORRECT ANSWER True Workers' Compensation insurance protects employees and their dependents against losses due to work-related injury. True False - CORRECT ANSWER true Today, many employers place heavy emphasis on collecting reference inquiries when hiring new employees. True False - CORRECT ANSWER False The Americans with Disabilities Act (ADA) prohibits the employment of disabled persons in certain occupations. True False - CORRECT ANSWER False Pre-hire questions pertaining to religion, gender, national origin, or age are allowed when these factors are bona fide occupational qualifications for the job. True False - CORRECT ANSWER True