Chapter 1 Payroll Fundamentals Questions with 100% Correct Answers

Chapter 1 Payroll Fundamentals
Questions with 100% Correct
Answers
Payroll'sMChiefMProductM-MtheMpaycheckMorMpayMstatementM-MmustMbe:M-
MAnswerMBothMaccurateMandMtimely



WhatMtaxes,MifMany,MmustMbeMwithheldMfromManMemployee'sMpay?M-
MAnswerMFederalMincome,MsocialMsecurity,MandMMedicare



WhatMtaxes,MifManyMmustMbeMwithheldMfromManMindependentMcontractor'sMpayMwhoM
providesMaMTIN?M-MAnswerMNoMtaxesMareMwithheld



WhoMhasMresponsibilityMtoMdetermineMifMtheMworkerMisManMemployeeMorMindependent
Mcontractor?M-MAnswerMHiringMentity



PriorMtoMbeginningMworkMforMaMcompany,MaMchemicalMengineerMsignedMaMcontractMst
atingMtheMsheMagreedMtoMworkMasManMindependentMcontractor.MSheMperformsMallMher
MdutiesMinMtheMcompany'sMlaboratories,MwhereMsheMhasMfullMaccessMtoMtheMcompany'
sMtestingMequipment.MSheMworksMunderMtheirMdirectionMandMmaintainsMregularMofficeM
hours.MWhatMisMherMstatus?M-MAnswerMEmployee



AMretiredMsafetyMinspectorMforMtheMcompanyMwasMrehiredMasMaMconsultantMwhenMthe
McompanyMexpandedMitsMplantMoperations.MTheMretiredMemployeeMwasMaMnaturalMchoi
ce.MTheMtasksMheMundertookMasMaMconsultantMwereMtheMsameMasMtheMoneMheMperf
ormedMbeforeMretirement.MPaidMmonthly,MheMhasMagreedMtoMworkMunderMtheMdirectio
nMofMhisMoldMbossMuntilMtheMnewMplantMfacilitiesMareMfullyMoperational.MWhatMisMhis
Mstatus?M-MAnswerMEmployee



AMreceptionistMhasMagreedMtoMworkMafternoonsMatMtheMcompanyMuntilMtheyMcanMfind
MaMfull-timeMreplacement.MWhatMisMtheMreceptionistMstatus?M-MAnswerMEmployee



WhichMofMtheMfollowingMworkersMisManMindependentMcontractor?M-
MAnswerMAMlecturerMwhoMisMpaidMaMpercentageMofMtheMmoneyMcollectedMatMfundrais
ersMwhenMheMspeaksMonMbehalfMofMaMnonMprofitMclinic



WhatMareMexemptMemployeesMexemptMfrom?M-MAnswerMMinimumMwageMandMovertime

, AllMofMtheMfollowingMtypeMofMemployeesMareMclassifiedMasMexemptMfromMtheMFLSA'sM
minimumMwageMandMovertimeMrequirementsMexcept:M-MAnswerMComputerMrepairman



AMwaitressMisMpaidM$2.25MperMhour,MandMsheMreceivesM$255.00MinMtipsMduringMtheM
week.MSheMworksM40MhoursMperMweek.MWhichMofMtheMfollowingMisMtrue?M-
MAnswerMHerMemployerMisMallowedMtoMreduceMherMcashMwageMtoMnoMlessMthanM2.1
3MperMhour.



WhatMisMtheMfederalMminimumMwage?M-MAnswerM$7.25



IfMaMstateMsetsMtheMminimumMwageMgreaterMthanMtheMfederalMminimumMwageMtheMs
tateMminimumMwageMmustMbeMpaidMtoMworkersMinMthatMstate.M-MAnswerMTrue



AMnonMexemptMemployeeMworksMinMaMstateMwithMaMminimumMwageMofM$7.35MperM
hour,MwhileMlivingMinMaMstateMwithMaMminimumMwageMofM$8.05.MWhatMisMtheMmini
mumMrateMheMmustMbeMpaid?M-MAnswerM$7.35



TipsMcanMbeMcountedMtowardMtheMemployeesMminimumMwage?M-MAnswerMTrue



AnMEmployeeMworksM40MhoursMperMweekMasMaMfryMcook.MDuringMtheMweek,MsheMsu
bstitutesMforMoneMofMtheMwaitressesMandMreportsM$15.00MperMweekMinMtips.MCanMher
MemployerMpayMherM2.13MperMhour?M-
MAnswerMNoMbecauseMsheMmustMreceiveM$30.00MperMmonthMinMtips



EmployersMwhoMprovideMpaidMvacationMleaveMmustMcountMtheMhoursMofMpaidMtimeMof
fMwhenMdeterminingMifMtheMemployeeMmustMreceiveManMovertimeMpremiumMwhenMthe
MtotalMhoursMworkedMinMaMweekMexceedM40.M-MAnswerMFalse



AMnonexemptMemployeeMworksMtheMnightMshiftM(midnightMtoM8:00am)MandMworksM45
MhoursMduringMtheMweek.MUnderMtheMFSLA,MwhatMmustMhisMemployerMpayMhim?M-
MAnswerMTheMfederalMminimumMwage



TheMFLSAMrequiresMthatMtimeMworkedMonMSaturdayMbeMpaidMatMovertimeMratesMandM
timeMworkedMonMSundayMbeMpaidMatMdoubleMtimeMrates.M-MAnswerMFalse