Question 1

A nondiscretionary bonus is one that is either known in advance or is set up as an inducement 
to achieve certain goals.

Accepted Answer

A) True 
 B)False

Question 2

Nondiscretionary bonuses are part of the determination of the regular rate of pay.

Accepted Answer

A) True 
 B)False

Question 3

Instruction 2-2 
Carry each hourly rate and each overtime rate to 3 decimal places and then round off to 2 decimal places .  
Refer to Instruction 2-2. Bob Knox is paid on a piece-rate basis. He is paid 30 cents for each unit he produces. For overtime work,  he receives in addition to his piece-rate earnings a sum equal to one-half the regular hourly pay multiplied by the  hours worked in excess of 40 in a week. During a particular week, Knox worked 45 hours and produced 1,890 units.  His total earnings for the week are _____.

Accepted Answer

The answer of Instruction 2-2 
Carry each hourly rate and...

Question 4

Under the FLSA, regular rate of pay does not include:

Accepted Answer

A)  vacation pay. 
B)  severance pay. 
C)  overtime pay. 
D)  earned bonuses. 
E)  All of the above are considered wages. 
A)  vacation pay. 
B)  severance pay. 
C)  overtime pay. 
D)  earned bonuses. 
E)  All of the above are considered wages.

Question 5

When employees spend time changing clothes on the employer's premises, this time must be counted as part of their principal activities for which they are always fully compensated.

Accepted Answer

A) True 
 B)False

Question 6

Instruction 2-1 Unless instructed otherwise, compute hourly rate and overtime rates as follows:   
1. Carry the hourly rate and the overtime rate to 3 decimal places and then round off to 2 decimal places (round the hourly rate to 2 decimal places before multiplying by one and one-half to determine the overtime rate). 
2. If the third decimal place is 5 or more, round to the next higher cent. 
3. If the third decimal place is less than 5, drop the third decimal place. 
Also, use the minimum hourly wage of $7.25 in solving these problems and all that follow. 
Refer to Instruction 2-1 . Carla Maloney is a waitress who regularly receives $80 each week in tips and works 40 hours each week. The minimum gross weekly pay, excluding tips, that the restaurant could pay Maloney without violating the FLSA is __________.

Accepted Answer

The answer of Instruction 2-1 Unless instructed otherwise, compute hourly...

Question 7

Employers are not required to pay an employee for hours not worked because of illness.

Accepted Answer

A) True 
 B)False

Question 8

Commissions are considered to be payments for hours worked and must be included in determining the regular hourly rate.

Accepted Answer

A) True 
 B)False

Question 9

Employees who regularly work less than 20 hours a week are not covered by the minimum wage requirements.

Accepted Answer

A) True 
 B)False

Question 10

The FLSA requires that workers receive overtime pay for all hours worked in excess of 40 in a workweek.

Accepted Answer

A) True 
 B)False

Question 11

Under no conditions may children under age 16 be employed in food service establishments.

Accepted Answer

A) True 
 B)False

Question 12

Under the FLSA enterprise coverage test, hospitals and nursing homes are only covered if their annual charges for services are at least $500,000.

Accepted Answer

A) True 
 B)False

Question 13

A retail shop may employ a full-time student at $5.00 per hour.

Accepted Answer

A) True 
 B)False

Question 14

Training sessions are counted as working time when the following condition is met:

Accepted Answer

A)  the employee's attendance is voluntary. 
B)  the employer requires the employee's attendance. 
C)  the training sessions are for the primary benefit of the employee. 
D)  the session takes place outside the regular working hours. 
E)  the session is not directly related to the employee's work. 
A)  the employee's attendance is voluntary. 
B)  the employer requires the employee's attendance. 
C)  the training sessions are for the primary benefit of the employee. 
D)  the session takes place outside the regular working hours. 
E)  the session is not directly related to the employee's work.

Question 15

Instruction 2-1 Unless instructed otherwise, compute hourly rate and overtime rates as follows:   
1. Carry the hourly rate and the overtime rate to 3 decimal places and then round off to 2 decimal places (round the hourly rate to 2 decimal places before multiplying by one and one-half to determine the overtime rate). 
2. If the third decimal place is 5 or more, round to the next higher cent. 
3. If the third decimal place is less than 5, drop the third decimal place. 
Also, use the minimum hourly wage of $7.25 in solving these problems and all that follow. 
Refer to Instruction 2-1 . Kevin Kurtz is a newly hired exempt employee who earns an annual salary of $67,600. Since he started work on Thursday (five-day week ends on Friday), his pay for the first week would be __________.

Accepted Answer

The answer of Instruction 2-1 Unless instructed otherwise, compute hourly...

Question 16

Instruction 2-1 Unless instructed otherwise, compute hourly rate and overtime rates as follows:   
1. Carry the hourly rate and the overtime rate to 3 decimal places and then round off to 2 decimal places (round the hourly rate to 2 decimal places before multiplying by one and one-half to determine the overtime rate). 
2. If the third decimal place is 5 or more, round to the next higher cent. 
3. If the third decimal place is less than 5, drop the third decimal place. 
Also, use the minimum hourly wage of $7.25 in solving these problems and all that follow. 
Refer to Instruction 2-1 . Ides receives 16 cents for every unit produced. Ides produces 2,976 pieces in a 43-hour 
workweek. For overtime, Ides is paid a sum equal to one-half the regular hourly pay rate multiplied by the number 
of overtime hours. Ides' total piecework and overtime earnings are __________.

Accepted Answer

The answer of Instruction 2-1 Unless instructed otherwise, compute hourly...

Question 17

Instruction 2-1 Unless instructed otherwise, compute hourly rate and overtime rates as follows:   
1. Carry the hourly rate and the overtime rate to 3 decimal places and then round off to 2 decimal places (round the hourly rate to 2 decimal places before multiplying by one and one-half to determine the overtime rate). 
2. If the third decimal place is 5 or more, round to the next higher cent. 
3. If the third decimal place is less than 5, drop the third decimal place. 
Also, use the minimum hourly wage of $7.25 in solving these problems and all that follow. 
Refer to Instruction 2-1 . Elder is paid a monthly salary of $2,250. Overtime is paid for hours beyond 40 in each workweek. One week, Elder works 7 hours overtime. Elder's gross pay for the week is __________.

Accepted Answer

The answer of Instruction 2-1 Unless instructed otherwise, compute hourly...

Question 18

Employees paid by the hour without a guarantee of a weekly minimum salary do not qualify for the salary test for white-collar workers.

Accepted Answer

A) True 
 B)False

Question 19

A college may employ its own full-time students at 85 percent of the minimum wage.

Accepted Answer

A) True 
 B)False

Question 20

Under the continental system of recording time, 9:00 a.m. is recorded as 900 while 9:00 p.m. is recorded as 2100.

Accepted Answer

A) True 
 B)False

A nondiscretionary bonus is one that is either known in advance or is set up as an inducement to achieve certain goals.

Nondiscretionary bonuses are part of the determination of the regular rate of pay.

Under the FLSA, regular rate of pay does not include:

When employees spend time changing clothes on the employer's premises, this time must be counted as part of their principal activities for which they are always fully compensated.

Employers are not required to pay an employee for hours not worked because of illness.

Commissions are considered to be payments for hours worked and must be included in determining the regular hourly rate.

Employees who regularly work less than 20 hours a week are not covered by the minimum wage requirements.

The FLSA requires that workers receive overtime pay for all hours worked in excess of 40 in a workweek.

Under no conditions may children under age 16 be employed in food service establishments.

Under the FLSA enterprise coverage test, hospitals and nursing homes are only covered if their annual charges for services are at least $500,000.

A retail shop may employ a full-time student at $5.00 per hour.

Training sessions are counted as working time when the following condition is met:

Employees paid by the hour without a guarantee of a weekly minimum salary do not qualify for the salary test for white-collar workers.

A college may employ its own full-time students at 85 percent of the minimum wage.

Under the continental system of recording time, 9:00 a.m. is recorded as 900 while 9:00 p.m. is recorded as 2100.

The Need for Payroll and Personnel Records

Social Security Taxes

Income Tax Withholding

Unemployment Compensation Taxes

Analyzing and Journalizing Payroll

Filters

Exam 2: Computing Wages and Salaries

A nondiscretionary bonus is one that is either known in advance or is set up as an inducement to achieve certain goals.

Nondiscretionary bonuses are part of the determination of the regular rate of pay.

Under the FLSA, regular rate of pay does not include:

When employees spend time changing clothes on the employer's premises, this time must be counted as part of their principal activities for which they are always fully compensated.

Employers are not required to pay an employee for hours not worked because of illness.

Commissions are considered to be payments for hours worked and must be included in determining the regular hourly rate.

Employees who regularly work less than 20 hours a week are not covered by the minimum wage requirements.

The FLSA requires that workers receive overtime pay for all hours worked in excess of 40 in a workweek.

Under no conditions may children under age 16 be employed in food service establishments.

Under the FLSA enterprise coverage test, hospitals and nursing homes are only covered if their annual charges for services are at least $500,000.

A retail shop may employ a full-time student at $5.00 per hour.

Training sessions are counted as working time when the following condition is met:

Employees paid by the hour without a guarantee of a weekly minimum salary do not qualify for the salary test for white-collar workers.

A college may employ its own full-time students at 85 percent of the minimum wage.

Under the continental system of recording time, 9:00 a.m. is recorded as 900 while 9:00 p.m. is recorded as 2100.

The Need for Payroll and Personnel Records

Social Security Taxes

Income Tax Withholding

Unemployment Compensation Taxes

Analyzing and Journalizing Payroll

Filters