Question 1

Compensatory time is only federally mandated for public salaried exempt employees.

Accepted Answer

A) True 
 B)False  True

Question 2

The hundredth-hour system promotes more accuracy in employee time collection than the quarter-hour system.

Accepted Answer

A) True 
 B)False  True

Question 3

Alan is an hourly worker who earns $10.50 per hour and is paid overtime for any time over 40 hours per week. During a weekly period, he worked the following hours:
Day In Out In Out
Monday 7:53 12:04 13:15 17:25
Tuesday 7:42 11:30 12:35 16:45
Wednesday 7:48 12:35 13:28 17:25
Thursday 8:08 12:22 13:45 17:37
Friday 7:35 12:13 13:15 16:42
What is his gross pay for the week using both quarter-hour and hundredth hour methods? (Do not round intermediate calculations. Round your
Answer to 2 decimal places.)

Accepted Answer

A)  $420.00; $434. 
B)  $420.00; $439. 
C)  $420.00; $429.67 
D)  $ 435.75; $439.43 
A)  $420.00; $434. 
B)  $420.00; $439. 
C)  $420.00; $429.67 
D)  $ 435.75; $439.43 D

Question 4

Vincent is a tipped employee who earns a wage of $2.13 per hour in a tip-credit state and works a standard 40-hour workweek. Last week, he earned $60 in tips. Which of the following is true?

Accepted Answer

A)  Vincent does not have to report his tips for the week because they were less than $75. 
B)  Vincent must ﬁle a request with his employer to have the tip credit applied to his wages for the week. 
C)  Vincent's employer must pay him the tip credit because his wages and tips for the week were less than the federal minimum wage. 
D)  Vincent's employer may not report his tips for income tax purposes. 
A)  Vincent does not have to report his tips for the week because they were less than $75. 
B)  Vincent must ﬁle a request with his employer to have the tip credit applied to his wages for the week. 
C)  Vincent's employer must pay him the tip credit because his wages and tips for the week were less than the federal minimum wage. 
D)  Vincent's employer may not report his tips for income tax purposes.

Question 5

Adrienne worked 88 hours during a biweekly period. Her standard workweek comprises 38.5 hours and company policy states that employees may receive overtime or compensatory time for hours worked in excess of 38.5. She has requested compensatory time in lieu of overtime
Keeping with company policy. She must receive ________ hours of compensatory time.

Accepted Answer

A)  13.5 
B)  15.5 
C)  11.5 
D)  16.5 
A)  13.5 
B)  15.5 
C)  11.5 
D)  16.5

Question 6

Tony is a salaried, nonexempt employee who earns $37,400 for a standard 40-hour workweek. During a biweekly pay period, he worked 3.5 hours overtime. What is his overtime-hourly rate? (Round to the nearest cent.)

Accepted Answer

A)  $29.23 per hour 
B)  $24.49 per hour 
C)  $17.98 per hour 
D)  $26.97 per hour 
A)  $29.23 per hour 
B)  $24.49 per hour 
C)  $17.98 per hour 
D)  $26.97 per hour

Question 7

Adam is a nonexempt employee who is single with one withholding allowance and earns $15 per hour and has a standard 40-hour workweek. During a weekly pay period, he worked 46 hours. What is Adam's gross pay for the period? (Do not round intermediate calculations. Round your
Answer to 2 decimal places.)

Accepted Answer

A)  $600. 
B)  $690. 
C)  $735. 
D)  $1,035. 
A)  $600. 
B)  $690. 
C)  $735. 
D)  $1,035.

Question 8

Brendan is an hourly worker. During a week's pay period, he worked the following hours and minutes: Day Hours Minutes
Monday 8 45
Tuesday 7 52
Wednesday 8 0
Thursday 9 36
Friday 8 24
Using the quarter-hour method, how many total hours did Brendan work that week?

Accepted Answer

A)  41.75 hours 
B)  42.25 hours 
C)  43.25 hours 
D)  42.50 hours 
A)  41.75 hours 
B)  42.25 hours 
C)  43.25 hours 
D)  42.50 hours

Question 9

Lloyd is the CFO for a ﬁrm that uses ISOs as part of its executive compensation plan. He receives $150,000 annually, paid semimonthly, in base salary plus 25 shares of the ﬁrm's stock per month. The stock is omitted from gross pay calculations and is valued at $52.50 per share and he
May exercise his option within ﬁve years at $0.10 per share. What is Lloyd's gross pay for mid-October?

Accepted Answer

A)  $6,250 
B)  $7,250 
C)  $8,250 
D)  $7,560 
A)  $6,250 
B)  $7,250 
C)  $8,250 
D)  $7,560

Question 10

Grainne is an inside salesperson who earns an annual salary of $32,800 (paid biweekly) plus a commission on quarterly sales that is paid on the ﬁrst pay date on the next quarter. She receives a 1% commission for quarterly sales totaling $0 to $25,000, a 2% commission for quarterly sales
Totaling between $25,001 and $50,000, and a 3% commission for quarterly sales totaling over $50,001. During the second quarter, Grainne's
Quarterly sales totaled $46,750. What is her gross pay for the ﬁrst pay period in July? (Do not round intermediate calculations. Round your
Answer to 2 decimal places.)

Accepted Answer

A)  $2,301.67 
B)  $2,664.04 
C)  $1,729.04 
D)  $2,196.54 
A)  $2,301.67 
B)  $2,664.04 
C)  $1,729.04 
D)  $2,196.54

Question 11

Brendan is an hourly worker and earns $15.25/hour. During a week's pay period, he worked the following hours and minutes: Day Hours Minutes
Monday 8 45
Tuesday 7 52
Wednesday 8 0
Thursday 9 36
Friday 8 24
Using the hundredth-hour method, what is Brendan's gross pay for the week? The employer pays overtime for all time worked in excess of 40
Hours per week. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Accepted Answer

A)  $649.90 
B)  $669.86 
C)  $670. 
D)  $650. 
A)  $649.90 
B)  $669.86 
C)  $670. 
D)  $650.

Question 12

Brittany is a full-time college student and is 21 years of age. Her employer has the option to pay her less than the Federal minimum wage. What is the minimum hourly rate that Brittany may receive?

Accepted Answer

A)  $4.25 per hour 
B)  $6.16 per hour 
C)  $5.80 per hour 
D)  $7.25 per hour 
A)  $4.25 per hour 
B)  $6.16 per hour 
C)  $5.80 per hour 
D)  $7.25 per hour

Question 13

Bill is an exempt employee whose annual pay is $53,600 for 37.5 hours per week. During a two-week period, company employees were given a two-day holiday. What is Bill's regular pay and holiday pay for the period? (Do not round intermediate calculations. Round your answer to 2
Decimal places.)

Accepted Answer

A)  $1,785.67; $602.38 
B)  $1,649.23; $412.31 
C)  $1,529.74; $603.92 
D)  $1,630.77; $615.48 
A)  $1,785.67; $602.38 
B)  $1,649.23; $412.31 
C)  $1,529.74; $603.92 
D)  $1,630.77; $615.48

Question 14

Tetsuko is a surgical resident at a busy metropolitan hospital. She regularly works 24-48 hour shifts as a part of her duties. What must the employer do, according to the FLSA? (You may select more than one answer. Single click the box with the question mark to produce a
Check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes
Left with a question mark will be automatically graded as incorrect.)

Accepted Answer

A)  Give Tetsuko a minimum of 5 hours sleep time per 24 hours of the shift. 
B)  Give Tetsuko additional time off after a long shift. 
C)  Give Tetsuko appropriate meal breaks. 
D)  Give Tetsuko time to sleep and deduct those hours from her pay. 
A)  Give Tetsuko a minimum of 5 hours sleep time per 24 hours of the shift. 
B)  Give Tetsuko additional time off after a long shift. 
C)  Give Tetsuko appropriate meal breaks. 
D)  Give Tetsuko time to sleep and deduct those hours from her pay.

Question 15

Which of the following is not a class of worker that may receive an hourly rate below the Federal minimum wage?

Accepted Answer

A)  A 16 year-old employee in the ﬁrst 90 days of work. 
B)  Full-time college students in agricultural occupations. 
C)  A student learner currently enrolled in a vocational education program. 
D)  Disabled employees in occupations unrelated to their disability. 
A)  A 16 year-old employee in the ﬁrst 90 days of work. 
B)  Full-time college students in agricultural occupations. 
C)  A student learner currently enrolled in a vocational education program. 
D)  Disabled employees in occupations unrelated to their disability.

Question 16

Federal policy explains clear differences between exempt and nonexempt employees.

Accepted Answer

A) True 
 B)False

Question 17

The difference between the tipped employee minimum wage and the federal minimum wage is called the ________.

Accepted Answer

A)  Wage allowance 
B)  Wage credit 
C)  Tip credit 
D)  Tip allowance 
A)  Wage allowance 
B)  Wage credit 
C)  Tip credit 
D)  Tip allowance

Question 18

Nonexempt employees are usually workers who:

Accepted Answer

A)  Routinely supervise other employees. 
B)  Are exempt from certain company rules. 
C)  Occupy executive positions in the company. 
D)  Perform operative level tasks. 
A)  Routinely supervise other employees. 
B)  Are exempt from certain company rules. 
C)  Occupy executive positions in the company. 
D)  Perform operative level tasks.

Question 19

Computing the sum of rows and columns is known by the term:

Accepted Answer

A)  Compute. 
B)  Total. 
C)  Prove. 
D)  Rule. 
A)  Compute. 
B)  Total. 
C)  Prove. 
D)  Rule.

Question 20

Lynda works as a sales representative for her company. Her job requires her to travel to customer sites to meet with her customers. Which of the following pay bases would be the most appropriate for her?

Accepted Answer

A)  Commission 
B)  Hourly 
C)  Salary 
D)  Piece-rate 
A)  Commission 
B)  Hourly 
C)  Salary 
D)  Piece-rate

Compensatory time is only federally mandated for public salaried exempt employees.

The hundredth-hour system promotes more accuracy in employee time collection than the quarter-hour system.

Vincent is a tipped employee who earns a wage of $2.13 per hour in a tip-credit state and works a standard 40-hour workweek. Last week, he earned $60 in tips. Which of the following is true?

Tony is a salaried, nonexempt employee who earns $37,400 for a standard 40-hour workweek. During a biweekly pay period, he worked 3.5 hours overtime. What is his overtime-hourly rate? (Round to the nearest cent.)

Brendan is an hourly worker. During a week's pay period, he worked the following hours and minutes: Day Hours Minutes Monday 8 45 Tuesday 7 52 Wednesday 8 0 Thursday 9 36 Friday 8 24 Using the quarter-hour method, how many total hours did Brendan work that week?

Brittany is a full-time college student and is 21 years of age. Her employer has the option to pay her less than the Federal minimum wage. What is the minimum hourly rate that Brittany may receive?

Bill is an exempt employee whose annual pay is $53,600 for 37.5 hours per week. During a two-week period, company employees were given a two-day holiday. What is Bill's regular pay and holiday pay for the period? (Do not round intermediate calculations. Round your answer to 2 Decimal places.)

Which of the following is not a class of worker that may receive an hourly rate below the Federal minimum wage?

Federal policy explains clear differences between exempt and nonexempt employees.

The difference between the tipped employee minimum wage and the federal minimum wage is called the ________.

Nonexempt employees are usually workers who:

Computing the sum of rows and columns is known by the term:

Lynda works as a sales representative for her company. Her job requires her to travel to customer sites to meet with her customers. Which of the following pay bases would be the most appropriate for her?

Payroll Practices and System Fundamentals

Payroll System Procedures

Fringe Benefits and Voluntary Deductions

Employee Net Pay and Pay Methods

Employer Payroll Taxes and Labor Planning

The Payroll Register, Employees Earnings Records, and Accounting System Entries

Filters

Exam 3: Gross Pay Computation

Compensatory time is only federally mandated for public salaried exempt employees.

The hundredth-hour system promotes more accuracy in employee time collection than the quarter-hour system.

Vincent is a tipped employee who earns a wage of $2.13 per hour in a tip-credit state and works a standard 40-hour workweek. Last week, he earned $60 in tips. Which of the following is true?

Tony is a salaried, nonexempt employee who earns $37,400 for a standard 40-hour workweek. During a biweekly pay period, he worked 3.5 hours overtime. What is his overtime-hourly rate? (Round to the nearest cent.)

Brendan is an hourly worker. During a week's pay period, he worked the following hours and minutes: Day Hours Minutes Monday 8 45 Tuesday 7 52 Wednesday 8 0 Thursday 9 36 Friday 8 24 Using the quarter-hour method, how many total hours did Brendan work that week?

Brittany is a full-time college student and is 21 years of age. Her employer has the option to pay her less than the Federal minimum wage. What is the minimum hourly rate that Brittany may receive?

Bill is an exempt employee whose annual pay is $53,600 for 37.5 hours per week. During a two-week period, company employees were given a two-day holiday. What is Bill's regular pay and holiday pay for the period? (Do not round intermediate calculations. Round your answer to 2 Decimal places.)

Which of the following is not a class of worker that may receive an hourly rate below the Federal minimum wage?

Federal policy explains clear differences between exempt and nonexempt employees.

The difference between the tipped employee minimum wage and the federal minimum wage is called the ________.

Nonexempt employees are usually workers who:

Computing the sum of rows and columns is known by the term:

Lynda works as a sales representative for her company. Her job requires her to travel to customer sites to meet with her customers. Which of the following pay bases would be the most appropriate for her?

Payroll Practices and System Fundamentals

Payroll System Procedures

Fringe Benefits and Voluntary Deductions

Employee Net Pay and Pay Methods

Employer Payroll Taxes and Labor Planning

The Payroll Register, Employees Earnings Records, and Accounting System Entries

Filters