Trivia Questions Quiz on Fundamental Payroll Certification Test!

1. Which federal law in the United States mandates that employers must pay eligible employees a minimum wage and overtime pay for hours worked beyond 40 in a workweek?

Fair Labor Standards Act (FLSA)

Family and Medical Leave Act (FMLA)

Occupational Safety and Health Act (OSHA)

Employee Retirement Income Security Act (ERISA)

The Fair Labor Standards Act (FLSA) sets federal standards for minimum wage, overtime pay, and other labor-related regulations.

Explanation

The Fair Labor Standards Act (FLSA) sets federal standards for minimum wage, overtime pay, and other labor-related regulations.

2. Which federal law establishes the minimum wage rate in the United States?

Fair Labor Standards Act (FLSA)

Family and Medical Leave Act (FMLA)

Occupational Safety and Health Act (OSHA)

National Labor Relations Act (NLRA)

The Fair Labor Standards Act (FLSA) is the federal law that sets the minimum wage rate in the United States. It also governs overtime pay and child labor standards, making it a fundamental law in payroll and employment regulations.

Explanation

The Fair Labor Standards Act (FLSA) is the federal law that sets the minimum wage rate in the United States. It also governs overtime pay and child labor standards, making it a fundamental law in payroll and employment regulations.

3. Social Securtiy and Medicare taxes together make-up what is called

FICA

State Income Tax

FCC

County Income Tax

The correct answer is FICA. FICA stands for Federal Insurance Contributions Act, which is a law that requires employees and employers to contribute to Social Security and Medicare taxes. These taxes are used to fund these social insurance programs that provide benefits to retired and disabled individuals, as well as healthcare coverage for elderly and disabled individuals. Therefore, Social Security and Medicare taxes together make up what is called FICA.

Explanation

The correct answer is FICA. FICA stands for Federal Insurance Contributions Act, which is a law that requires employees and employers to contribute to Social Security and Medicare taxes. These taxes are used to fund these social insurance programs that provide benefits to retired and disabled individuals, as well as healthcare coverage for elderly and disabled individuals. Therefore, Social Security and Medicare taxes together make up what is called FICA.

4. True/False. Areas ;=left unregulated by federal laws are usually regulated by state laws.

True

False

Areas left unregulated by federal laws are usually regulated by state laws because the Constitution grants certain powers to the federal government while reserving all other powers to the states. This means that if the federal government has not specifically regulated a certain area, the states have the authority to do so. This allows states to tailor regulations to their specific needs and preferences, ensuring that laws are responsive to local conditions and concerns. As a result, it is generally true that areas not covered by federal laws are regulated by state laws.

Explanation

Areas left unregulated by federal laws are usually regulated by state laws because the Constitution grants certain powers to the federal government while reserving all other powers to the states. This means that if the federal government has not specifically regulated a certain area, the states have the authority to do so. This allows states to tailor regulations to their specific needs and preferences, ensuring that laws are responsive to local conditions and concerns. As a result, it is generally true that areas not covered by federal laws are regulated by state laws.

5. The FLSA DOES NOT require which of the following?

Record Keeping Keeping (3 years)

Overtime

Payable Time

Vacation Pay

The FLSA (Fair Labor Standards Act) does not require employers to provide vacation pay to their employees. The act does have regulations regarding record-keeping, overtime, and payable time, but it does not specifically address vacation pay. This means that employers are not legally obligated to offer paid vacation time to their employees under the FLSA.

Explanation

The FLSA (Fair Labor Standards Act) does not require employers to provide vacation pay to their employees. The act does have regulations regarding record-keeping, overtime, and payable time, but it does not specifically address vacation pay. This means that employers are not legally obligated to offer paid vacation time to their employees under the FLSA.

6. Which answer is least likely to be correct? Workers can be classified as

Employees

Temporary Contractors

Exempt

Non-Exempt

Temporary Contractors are least likely to be classified as workers because they are not permanent employees of the company. Temporary contractors are usually hired for a specific project or period of time and are not considered regular employees. They are often hired through staffing agencies or as independent contractors, and their employment status is different from that of employees, exempt, and non-exempt workers.

Explanation

Temporary Contractors are least likely to be classified as workers because they are not permanent employees of the company. Temporary contractors are usually hired for a specific project or period of time and are not considered regular employees. They are often hired through staffing agencies or as independent contractors, and their employment status is different from that of employees, exempt, and non-exempt workers.

7. True or False. For Independent Contractors the employerr issues a 1099 MISC form to the worker and the IRS to report pay that is over $800 per year.

True

False

The employer issues a 1099 MISC form to the worker and the IRS to report pay that is over $600.

Explanation

The employer issues a 1099 MISC form to the worker and the IRS to report pay that is over $600.

8. The FLSA and IRS have identical tip income rules.

Ture

False

The FLSA deems tipped employees as those who make over $30/month in tips, whereas the IRS classifies tipped employees as those who make over $20/month in tips.

Explanation

The FLSA deems tipped employees as those who make over $30/month in tips, whereas the IRS classifies tipped employees as those who make over $20/month in tips.

9. IF an independent contractor fails to provide a TIN number she is subject to which of the following?

Monetary fines

Back up withholding of 24%

Back up withholding of 40%

Garnishment of 1099 income

If an independent contractor fails to provide a Taxpayer Identification Number (TIN), they may be subject to backup withholding of 24%. This means that the payer (the entity paying the contractor) may be required to withhold 24% of the payment and send it to the IRS. This is done as a way to ensure that taxes are paid on the income earned by the contractor.

Explanation

If an independent contractor fails to provide a Taxpayer Identification Number (TIN), they may be subject to backup withholding of 24%. This means that the payer (the entity paying the contractor) may be required to withhold 24% of the payment and send it to the IRS. This is done as a way to ensure that taxes are paid on the income earned by the contractor.

10. How much overtime is the employee entitled to If if he works 8 hrs Sunday-Tuesday, 9 hours on Wednesday, 12 hours on Thursday and 10 hours on Friday?

15

17

9

14

Total hours worked in the workweek = 8 + 8 + 8 + 9 + 12 + 10 + 0 = 55 hours.

Since the employee worked 55 hours in the workweek, which is more than the standard 40-hour workweek, they are entitled to overtime pay for the additional hours.

Overtime hours = 55 hours - 40 hours (regular hours) = 15 hours.

So, the employee is entitled to 15 hours of overtime pay. However, please note that labor laws can vary by location and employment agreements, so it's essential to check the specific regulations that apply in your jurisdiction or consult with HR or legal experts for accurate calculations.

Explanation

Total hours worked in the workweek = 8 + 8 + 8 + 9 + 12 + 10 + 0 = 55 hours.

Since the employee worked 55 hours in the workweek, which is more than the standard 40-hour workweek, they are entitled to overtime pay for the additional hours.

Overtime hours = 55 hours - 40 hours (regular hours) = 15 hours.

So, the employee is entitled to 15 hours of overtime pay. However, please note that labor laws can vary by location and employment agreements, so it's essential to check the specific regulations that apply in your jurisdiction or consult with HR or legal experts for accurate calculations.

11. What is the purpose of Form W-4 in the United States payroll process?

To report Social Security benefits received by employees

To report income from self-employment

To calculate federal income tax withholding for employees

To request a change of employee's work hours

Form W-4 is used by employees to provide information to their employers, allowing employers to calculate the appropriate federal income tax to withhold from the employee's paycheck.

Explanation

Form W-4 is used by employees to provide information to their employers, allowing employers to calculate the appropriate federal income tax to withhold from the employee's paycheck.

12. What two forms must be filled out before you receive a paycheck?

Form I-9 and Form 1040.

Form W-4 and Employee's Withholding Allowance Certificate.

Form 1-9 and Form W-4.

Form I-9 and Form 1099.

Before receiving a paycheck, two forms that must be filled out are Form W-4 and Employee's Withholding Allowance Certificate. These forms are necessary for the employer to determine the correct amount of federal income tax to withhold from the employee's paycheck. The Form W-4 provides information about the employee's filing status, number of dependents, and any additional withholdings, while the Employee's Withholding Allowance Certificate is used to calculate the amount of tax to be withheld based on the information provided in the Form W-4.

Explanation

Before receiving a paycheck, two forms that must be filled out are Form W-4 and Employee's Withholding Allowance Certificate. These forms are necessary for the employer to determine the correct amount of federal income tax to withhold from the employee's paycheck. The Form W-4 provides information about the employee's filing status, number of dependents, and any additional withholdings, while the Employee's Withholding Allowance Certificate is used to calculate the amount of tax to be withheld based on the information provided in the Form W-4.