, TESTBANK for Payroll Accounting 2024, 34th
Edition Bernard J. Bieg
Notes
1- The file is chapter after chapter.
2- We have shown you 10 or five pages.
3- The file contains all Appendix and Excel
sheet if it exists.
4- We have all what you need, we make
update at every time. There are many new
editions waiting you.
5- If you think you purchased the wrong file
You can contact us at every time, we can
replace it with true one.
Our email:
,Name: Class: Date:
Chapter 1
True / False
1. The Fair Labor Standards Act is commonly known as the Federal Wage and Hour Law.
a. True
b. False
ANSWER: True
2. The FLSA imposes no recordkeeping requirements on employers.
a. True
b. False
ANSWER: False
3. The employer is required by the FLSA to display a poster that informs employees of the provisions of the law.
a. True
b. False
ANSWER: True
4. All states have set their minimum wage to be the same as the federal government.
a. True
b. False
ANSWER: False
5. Under the Federal Insurance Contributions Act, the Medicare portion of the tax is only paid by the
employer.
a. True
b. False
ANSWER: False
6. The FLSA provides health insurance for the aged and disabled (Medicare).
a. True
b. False
ANSWER: False
7. The tax paid to the federal government for unemployment taxes is used for paying state and federal administrative
expenses of the unemployment program.
a. True
b. False
ANSWER: True
8. The Self-Employment Contributions Act imposes a tax on the net earnings from self-employment derived by an
individual from any trade or business.
a. True
b. False
ANSWER: True
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,Name: Class: Date:
Chapter 1
9. Each state imposes an income tax on employees that is 2% of gross wages.
a. True
b. False
ANSWER: False
10. Only six states do not impose a state unemployment tax on employers in their state.
a. True
b. False
ANSWER: False
11. One of the provisions of coverage of the Civil Rights Act is that the employer must have 15 or more workers.
a. True
b. False
ANSWER: True
12. Title VII of the Civil Rights Act protects all employees from arbitrary dismissal.
a. True
b. False
ANSWER: False
13. Under the Civil Rights Act of 1964, the U.S. government is classified as an exempt employer.
a. True
b. False
ANSWER: True
14. Employers not subject to Title VII coverage may come within the scope of the Civil Rights Act by reason of a contract
or subcontract involving federal funds.
a. True
b. False
ANSWER: True
15. By the use of executive orders, the federal government has banned discrimination in employment on government
contracts.
a. True
b. False
ANSWER: True
16. An exception to the protection that the Age Discrimination in Employment Act provides for all workers over 40
involves executives who are 65 or older and who have held high policy-making positions during the two-year period prior
to retirement.
a. True
b. False
ANSWER: True
17. Under the Federal Personal Responsibility and Work Opportunity Reconciliation Act, every employer is required to
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,Name: Class: Date:
Chapter 1
report the name, address, and social security number of each new employee to the appropriate state agency.
a. True
b. False
ANSWER: True
18. Form I-9 must be completed by each new hire.
a. True
b. False
ANSWER: True
19. Employers are now required to photocopy new employees’ Form I-9 documents.
a. True
b. False
ANSWER: False
20. In order for the Walsh-Healey Public Contracts Act to protect laborers for contractors who furnish materials to any
agency of the United States, the contract amount must be at least $10,000.
a. True
b. False
ANSWER: True
21. Under FMLA, the time off must be used in one uninterrupted period of time.
a. True
b. False
ANSWER: False
22. Under the Family and Medical Leave Act, employers can exempt an employee who has not worked for the employer
for at least one year and has worked for the company for at least 1,250 hours in the last year.
a. True
b. False
ANSWER: True
23. FUTA was designed to ensure that workers who are covered by pension plans receive benefits from those plans.
a. True
b. False
ANSWER: False
24. Under ERISA, vesting conveys to employees the right to share in a retirement fund in the event they are terminated
before the normal retirement age.
a. True
b. False
ANSWER: True
25. ERISA provides for full vesting of the employer’s contributions at the end of the fifth year of service or after the third
year of service with another 20% vesting in each subsequent year until full vesting is reached at the end of the 7th year.
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,Name: Class: Date:
Chapter 1
a. True
b. False
ANSWER: True
26. Under the Affordable Care Act, employers with 50 or more full-time employees during the previous year are required
to provide health insurance coverage for all full-time employees.
a. True
b. False
ANSWER: True
27. The Affordable Care Act does not make a distinction between large and small employers.
a. True
b. False
ANSWER: False
28. The total cost of workers’ compensation insurance is borne by the employees.
a. True
b. False
ANSWER: False
29. Workers’ compensation insurance premiums for employers vary according to the different degrees of danger in
various classes of jobs and the employers’ accident experience rate.
a. True
b. False
ANSWER: True
30. All states have partial-wage-replacement disability programs, that cover injuries away from the worker's place of
employment.
a. True
b. False
ANSWER: False
31. The requisition for personnel form is sent to the payroll department so that the new employee can be properly added to
the payroll.
a. True
b. False
ANSWER: False
32. Employment application forms are usually discarded when the applicant is hired.
a. True
b. False
ANSWER: False
33. If an investigative consumer report is being issued, the applicant must be given a written notice that the information
obtained will be used in the employment decision.
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,Name: Class: Date:
Chapter 1
a. True
b. False
ANSWER: True
34. Questions pertaining to religion, sex, national origin, or age are allowed on application forms when these are bona fide
occupational qualifications for a job.
a. True
b. False
ANSWER: True
35. Asking applicants for their arrest records is illegal.
a. True
b. False
ANSWER: True
36. There are no states that allow employees to access their personnel files.
a. True
b. False
ANSWER: False
37. The payroll register is a separate payroll record that is kept on each employee.
a. True
b. False
ANSWER: False
38. A payroll register lists all employees who have earned remuneration, the amount of remuneration, the deductions, and
the net amount paid for each pay period.
a. True
b. False
ANSWER: True
39. The amounts needed for the payroll entries in the journal come from the employee’s earnings record.
a. True
b. False
ANSWER: False
40. The trend toward outsourcing of payroll operations has weakened in recent years.
a. True
b. False
ANSWER: False
Multiple Choice
41. Which of the following laws establishes the minimum wage?
a. Fair Labor Standards Act
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,Name: Class: Date:
Chapter 1
b. Federal Income Tax Act
c. Federal Insurance Contributions Act
d. Federal Unemployment Tax Act
e. Fair Employment Laws
ANSWER: a
42. Which of the following is a provision of the Fair Labor Standards Act (FLSA)?
a. Sets up minimum wage
b. Tax on net earnings of self-employed individuals
c. Allows discrimination in hiring
d. Separate tax on employees and employers
e. All of these choices are provisions of the FLSA.
ANSWER: a
43. The Fair Labor Standards Act has set the current minimum hourly rate of pay at:
a. $10.00.
b. $7.25.
c. $7.75.
d. $5.00.
e. $8.50.
ANSWER: b
44. Which of the following acts levies a tax on employers and employees that is credited to the Federal Old-Age and
Survivors’ Trust Fund and the Federal Disability Insurance Trust Fund?
a. Federal Income Tax Act
b. Federal Insurance Contributions Act
c. Fair Labor Standards Act
d. Federal Unemployment Tax Act
e. Employee Retirement Income Security Act
ANSWER: b
45. Which of the following is not a part of the social security program?
a. Federal Income Tax Law
b. Federal Old-Age and Survivors’ Trust Fund
c. Medicare
d. Self-Employment Contributions Act
e. All of these choices are part of the social security program.
ANSWER: a
46. Which of the following is a part of the social security program?
a. Federal unemployment taxes (FUTA)
b. State income tax withholding
c. Medicare
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,Name: Class: Date:
Chapter 1
d. Federal income tax withholding
e. All of these choices are part of the social security program.
ANSWER: c
47. Which of the following levies a graduated tax on the earnings of most employees and is deducted from their gross
pay?
a. Income tax withholding laws
b. Federal Unemployment Tax Act
c. Fair Labor Standards Act
d. Federal Insurance Contributions Act
e. Employee Retirement Income Security Act
ANSWER: a
48. What tax act levies a tax on employers to pay state and federal administrative expenses of the unemployment
program?
a. Federal Income Tax Act
b. Federal Unemployment Tax Act
c. Federal Wage and Hour Law
d. Estate Unemployment Tax Acts
e. Workers' Compensation Laws
ANSWER: b
49. Which of the following Acts established the Equal Employment Opportunity Commission (EEOC)?
a. Americans with Disabilities Act
b. Immigration Reform and Control Act of 1986
c. Civil Rights Act of 1964
d. Age Discrimination in Employment Act
e. None of these choices are correct.
ANSWER: c
50. Title VII of the Civil Rights Act is referred to as the:
a. Wage and Hour Act.
b. Social Security Act.
c. Age Discrimination Act.
d. Equal Employment Opportunity Act.
e. Immigration Reform Act.
ANSWER: d
51. All of the following are covered by the Age Discrimination in Employment Act except:
a. labor unions.
b. an employer with 15 employees.
c. state government employees (other than elected officials).
d. employment agencies.
e. All of these choices are covered.
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, Name: Class: Date:
Chapter 1
ANSWER: b
52. The Age Discrimination in Employment Act provides protection to virtually all workers over the age of:
a. 50.
b. 65.
c. 70.
d. 75.
e. 40.
ANSWER: e
53. Form I-9, which is completed by each employee, deals with:
a. contributions to individual retirement accounts.
b. verification of employment eligibility.
c. eligibility for unemployment benefits.
d. eligibility for Medicare benefits.
e. none of these choices are correct.
ANSWER: b
54. Form I-9, Employment Eligibility Verification is required due to which of the following acts:
a. Immigration Reform and Control Act of 1986.
b. Civil Rights Act of 1964.
c. Age Discrimination in Employment Act.
d. Americans with Disabilities Act.
e. None of these choices.
ANSWER: a
55. Which of the following acts deals with the minimum wage paid to laborers for contractors on federal government
construction contracts?
a. Walsh-Healey Public Contracts Act
b. Fair Labor Standards Act
c. McNamara-O’Hara Service Contract Act
d. Occupational Safety and Health Act
e. Davis-Bacon Act
ANSWER: e
56. The E-Verify program is a system to check the:
a. age of new hires.
b. vesting status of all employees.
c. health status of employees on medical leave.
d. social Security status of new hires.
e. employment eligibility of new hires.
ANSWER: e
57. Which of the following acts deals with the unpaid leave for a family or medical emergency?
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Edition Bernard J. Bieg
Notes
1- The file is chapter after chapter.
2- We have shown you 10 or five pages.
3- The file contains all Appendix and Excel
sheet if it exists.
4- We have all what you need, we make
update at every time. There are many new
editions waiting you.
5- If you think you purchased the wrong file
You can contact us at every time, we can
replace it with true one.
Our email:
,Name: Class: Date:
Chapter 1
True / False
1. The Fair Labor Standards Act is commonly known as the Federal Wage and Hour Law.
a. True
b. False
ANSWER: True
2. The FLSA imposes no recordkeeping requirements on employers.
a. True
b. False
ANSWER: False
3. The employer is required by the FLSA to display a poster that informs employees of the provisions of the law.
a. True
b. False
ANSWER: True
4. All states have set their minimum wage to be the same as the federal government.
a. True
b. False
ANSWER: False
5. Under the Federal Insurance Contributions Act, the Medicare portion of the tax is only paid by the
employer.
a. True
b. False
ANSWER: False
6. The FLSA provides health insurance for the aged and disabled (Medicare).
a. True
b. False
ANSWER: False
7. The tax paid to the federal government for unemployment taxes is used for paying state and federal administrative
expenses of the unemployment program.
a. True
b. False
ANSWER: True
8. The Self-Employment Contributions Act imposes a tax on the net earnings from self-employment derived by an
individual from any trade or business.
a. True
b. False
ANSWER: True
Copyright Cengage Learning. Powered by Cognero. Page 1
,Name: Class: Date:
Chapter 1
9. Each state imposes an income tax on employees that is 2% of gross wages.
a. True
b. False
ANSWER: False
10. Only six states do not impose a state unemployment tax on employers in their state.
a. True
b. False
ANSWER: False
11. One of the provisions of coverage of the Civil Rights Act is that the employer must have 15 or more workers.
a. True
b. False
ANSWER: True
12. Title VII of the Civil Rights Act protects all employees from arbitrary dismissal.
a. True
b. False
ANSWER: False
13. Under the Civil Rights Act of 1964, the U.S. government is classified as an exempt employer.
a. True
b. False
ANSWER: True
14. Employers not subject to Title VII coverage may come within the scope of the Civil Rights Act by reason of a contract
or subcontract involving federal funds.
a. True
b. False
ANSWER: True
15. By the use of executive orders, the federal government has banned discrimination in employment on government
contracts.
a. True
b. False
ANSWER: True
16. An exception to the protection that the Age Discrimination in Employment Act provides for all workers over 40
involves executives who are 65 or older and who have held high policy-making positions during the two-year period prior
to retirement.
a. True
b. False
ANSWER: True
17. Under the Federal Personal Responsibility and Work Opportunity Reconciliation Act, every employer is required to
Copyright Cengage Learning. Powered by Cognero. Page 2
,Name: Class: Date:
Chapter 1
report the name, address, and social security number of each new employee to the appropriate state agency.
a. True
b. False
ANSWER: True
18. Form I-9 must be completed by each new hire.
a. True
b. False
ANSWER: True
19. Employers are now required to photocopy new employees’ Form I-9 documents.
a. True
b. False
ANSWER: False
20. In order for the Walsh-Healey Public Contracts Act to protect laborers for contractors who furnish materials to any
agency of the United States, the contract amount must be at least $10,000.
a. True
b. False
ANSWER: True
21. Under FMLA, the time off must be used in one uninterrupted period of time.
a. True
b. False
ANSWER: False
22. Under the Family and Medical Leave Act, employers can exempt an employee who has not worked for the employer
for at least one year and has worked for the company for at least 1,250 hours in the last year.
a. True
b. False
ANSWER: True
23. FUTA was designed to ensure that workers who are covered by pension plans receive benefits from those plans.
a. True
b. False
ANSWER: False
24. Under ERISA, vesting conveys to employees the right to share in a retirement fund in the event they are terminated
before the normal retirement age.
a. True
b. False
ANSWER: True
25. ERISA provides for full vesting of the employer’s contributions at the end of the fifth year of service or after the third
year of service with another 20% vesting in each subsequent year until full vesting is reached at the end of the 7th year.
Copyright Cengage Learning. Powered by Cognero. Page 3
,Name: Class: Date:
Chapter 1
a. True
b. False
ANSWER: True
26. Under the Affordable Care Act, employers with 50 or more full-time employees during the previous year are required
to provide health insurance coverage for all full-time employees.
a. True
b. False
ANSWER: True
27. The Affordable Care Act does not make a distinction between large and small employers.
a. True
b. False
ANSWER: False
28. The total cost of workers’ compensation insurance is borne by the employees.
a. True
b. False
ANSWER: False
29. Workers’ compensation insurance premiums for employers vary according to the different degrees of danger in
various classes of jobs and the employers’ accident experience rate.
a. True
b. False
ANSWER: True
30. All states have partial-wage-replacement disability programs, that cover injuries away from the worker's place of
employment.
a. True
b. False
ANSWER: False
31. The requisition for personnel form is sent to the payroll department so that the new employee can be properly added to
the payroll.
a. True
b. False
ANSWER: False
32. Employment application forms are usually discarded when the applicant is hired.
a. True
b. False
ANSWER: False
33. If an investigative consumer report is being issued, the applicant must be given a written notice that the information
obtained will be used in the employment decision.
Copyright Cengage Learning. Powered by Cognero. Page 4
,Name: Class: Date:
Chapter 1
a. True
b. False
ANSWER: True
34. Questions pertaining to religion, sex, national origin, or age are allowed on application forms when these are bona fide
occupational qualifications for a job.
a. True
b. False
ANSWER: True
35. Asking applicants for their arrest records is illegal.
a. True
b. False
ANSWER: True
36. There are no states that allow employees to access their personnel files.
a. True
b. False
ANSWER: False
37. The payroll register is a separate payroll record that is kept on each employee.
a. True
b. False
ANSWER: False
38. A payroll register lists all employees who have earned remuneration, the amount of remuneration, the deductions, and
the net amount paid for each pay period.
a. True
b. False
ANSWER: True
39. The amounts needed for the payroll entries in the journal come from the employee’s earnings record.
a. True
b. False
ANSWER: False
40. The trend toward outsourcing of payroll operations has weakened in recent years.
a. True
b. False
ANSWER: False
Multiple Choice
41. Which of the following laws establishes the minimum wage?
a. Fair Labor Standards Act
Copyright Cengage Learning. Powered by Cognero. Page 5
,Name: Class: Date:
Chapter 1
b. Federal Income Tax Act
c. Federal Insurance Contributions Act
d. Federal Unemployment Tax Act
e. Fair Employment Laws
ANSWER: a
42. Which of the following is a provision of the Fair Labor Standards Act (FLSA)?
a. Sets up minimum wage
b. Tax on net earnings of self-employed individuals
c. Allows discrimination in hiring
d. Separate tax on employees and employers
e. All of these choices are provisions of the FLSA.
ANSWER: a
43. The Fair Labor Standards Act has set the current minimum hourly rate of pay at:
a. $10.00.
b. $7.25.
c. $7.75.
d. $5.00.
e. $8.50.
ANSWER: b
44. Which of the following acts levies a tax on employers and employees that is credited to the Federal Old-Age and
Survivors’ Trust Fund and the Federal Disability Insurance Trust Fund?
a. Federal Income Tax Act
b. Federal Insurance Contributions Act
c. Fair Labor Standards Act
d. Federal Unemployment Tax Act
e. Employee Retirement Income Security Act
ANSWER: b
45. Which of the following is not a part of the social security program?
a. Federal Income Tax Law
b. Federal Old-Age and Survivors’ Trust Fund
c. Medicare
d. Self-Employment Contributions Act
e. All of these choices are part of the social security program.
ANSWER: a
46. Which of the following is a part of the social security program?
a. Federal unemployment taxes (FUTA)
b. State income tax withholding
c. Medicare
Copyright Cengage Learning. Powered by Cognero. Page 6
,Name: Class: Date:
Chapter 1
d. Federal income tax withholding
e. All of these choices are part of the social security program.
ANSWER: c
47. Which of the following levies a graduated tax on the earnings of most employees and is deducted from their gross
pay?
a. Income tax withholding laws
b. Federal Unemployment Tax Act
c. Fair Labor Standards Act
d. Federal Insurance Contributions Act
e. Employee Retirement Income Security Act
ANSWER: a
48. What tax act levies a tax on employers to pay state and federal administrative expenses of the unemployment
program?
a. Federal Income Tax Act
b. Federal Unemployment Tax Act
c. Federal Wage and Hour Law
d. Estate Unemployment Tax Acts
e. Workers' Compensation Laws
ANSWER: b
49. Which of the following Acts established the Equal Employment Opportunity Commission (EEOC)?
a. Americans with Disabilities Act
b. Immigration Reform and Control Act of 1986
c. Civil Rights Act of 1964
d. Age Discrimination in Employment Act
e. None of these choices are correct.
ANSWER: c
50. Title VII of the Civil Rights Act is referred to as the:
a. Wage and Hour Act.
b. Social Security Act.
c. Age Discrimination Act.
d. Equal Employment Opportunity Act.
e. Immigration Reform Act.
ANSWER: d
51. All of the following are covered by the Age Discrimination in Employment Act except:
a. labor unions.
b. an employer with 15 employees.
c. state government employees (other than elected officials).
d. employment agencies.
e. All of these choices are covered.
Copyright Cengage Learning. Powered by Cognero. Page 7
, Name: Class: Date:
Chapter 1
ANSWER: b
52. The Age Discrimination in Employment Act provides protection to virtually all workers over the age of:
a. 50.
b. 65.
c. 70.
d. 75.
e. 40.
ANSWER: e
53. Form I-9, which is completed by each employee, deals with:
a. contributions to individual retirement accounts.
b. verification of employment eligibility.
c. eligibility for unemployment benefits.
d. eligibility for Medicare benefits.
e. none of these choices are correct.
ANSWER: b
54. Form I-9, Employment Eligibility Verification is required due to which of the following acts:
a. Immigration Reform and Control Act of 1986.
b. Civil Rights Act of 1964.
c. Age Discrimination in Employment Act.
d. Americans with Disabilities Act.
e. None of these choices.
ANSWER: a
55. Which of the following acts deals with the minimum wage paid to laborers for contractors on federal government
construction contracts?
a. Walsh-Healey Public Contracts Act
b. Fair Labor Standards Act
c. McNamara-O’Hara Service Contract Act
d. Occupational Safety and Health Act
e. Davis-Bacon Act
ANSWER: e
56. The E-Verify program is a system to check the:
a. age of new hires.
b. vesting status of all employees.
c. health status of employees on medical leave.
d. social Security status of new hires.
e. employment eligibility of new hires.
ANSWER: e
57. Which of the following acts deals with the unpaid leave for a family or medical emergency?
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