1.
What two froms must be filled out before you receive a paycheck?
Correct Answer
B. Form W-4 and Employee's Withholding Allowance Certificate.
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.
2.
The Four types of withholding taxes are: Federal Income Tax, County Income tax, Employee Income Tax and
Correct Answer
FICA, , Government,, State , Local
3.
Social Securtiy and Medicare taxes together make-up what is called
Correct Answer
A. 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.
Which answer is least likely to be correct? Workers can be classified as
Correct Answer
B. Temporary Contractors
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.
5.
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.
Correct Answer
B. False
Explanation
The employer issues a 1099 MISC form to the worker and the IRS to report pay that is over $600.
6.
IF an independent contractor fails to provide a TIN number she is subject to which of the following?
Correct Answer
B. Back up withholding of 28%
Explanation
If an independent contractor fails to provide a TIN number, she is subject to back up withholding of 28%. This means that the payer of the income is required to withhold 28% of the contractor's payment and send it directly to the IRS. The withheld amount is then credited against the contractor's tax liability when she files her tax return. This penalty is imposed to ensure that the contractor fulfills her tax obligations and provides accurate information to the IRS.
7.
The FLSA DOES NOT require which of the following?
Correct Answer
D. Vacation Pay
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.
8.
True/False. Areas ;eft unregulated by fedear laws are usually regulated by state laws.
Correct Answer
A. True
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.
9.
All of the follwoing are non-exempt employees except for which one?
Correct Answer
B. A person whose primary job is to index computer files continuously.
Explanation
The correct answer is "A person whose primary job is to index computer files continuously." This person is likely classified as an exempt employee because their job involves primarily administrative tasks, such as organizing and maintaining computer files. Exempt employees are typically exempt from certain labor laws, such as overtime pay, because their job duties are considered to be more managerial or professional in nature. In contrast, the other options - a manager with subordinates, a high school administrator, and a computer specialist - are all examples of employees who would typically be classified as non-exempt due to their job responsibilities.
10.
As of 2008 federal minimum wage per hour was
Correct Answer
$5.75, $5.15, $4.25, $5.85
Explanation
The correct answer is $5.85.
11.
The FLSA and IRS have identical tip income rules.
Correct Answer
B. False
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.
12.
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,
Correct Answer
A. 7
Explanation
The employee is entitled to 7 hours of overtime. The regular working hours for the week are 40 hours (8 hours x 3 days), and the employee has worked a total of 49 hours (40 regular hours + 9 hours on Wednesday). Therefore, the employee has worked 9 hours of overtime (49 total hours - 40 regular hours), but since the question asks for the amount of overtime the employee is entitled to, the answer is 7 hours.