Chapter 1 Payroll Fundamentals Exam Questions and Correct Answer

Chapter 1 Payroll Fundamentals Exam Questions and Correct Answer Payroll's Chief Product - the paycheck or pay statement - must be: - CORRECT ANSWER-Both accurate and timely What taxes, if any, must be withheld from an employee's pay? - CORRECT ANSWERFederal income, social security, and Medicare What taxes, if any must be withheld from an independent contractor's pay who provides a TIN? - CORRECT ANSWER-No taxes are withheld Who has responsibility to determine if the worker is an employee or independent contractor? - CORRECT ANSWER-Hiring entity Prior to beginning work for a company, a chemical engineer signed a contract stating the she agreed to work as an independent contractor. She performs all her duties in the company's laboratories, where she has full access to the company's testing equipment. She works under their direction and maintains regular office hours. What is her status? - CORRECT ANSWER-Employee A retired safety inspector for the company was rehired as a consultant when the company expanded its plant operations. The retired employee was a natural choice. The tasks he undertook as a consultant were the same as the one he performed before retirement. Paid monthly, he has agreed to work under the direction of his old boss until the new plant facilities are fully operational. What is his status? - CORRECT ANSWEREmployee A receptionist has agreed to work afternoons at the company until they can find a fulltime replacement. What is the receptionist status? - CORRECT ANSWER-Employee Which of the following workers is an independent contractor? - CORRECT ANSWER-A lecturer who is paid a percentage of the money collected at fundraisers when he speaks on behalf of a non profit clinic What are exempt employees exempt from? - CORRECT ANSWER-Minimum wage and overtime All of the following type of employees are classified as exempt from the FLSA's minimum wage and overtime requirements except: - CORRECT ANSWER-Computer repairman