Deck 1: The Need for Payroll and Personnel Records

Question 1

Form I-9 must be completed by each new hire.

Answer 1

True

Question 2

By the use of executive orders, the federal government has banned discrimination in employment on government contracts.

Answer 2

True

Question 3

The FLSA imposes no recordkeeping requirements on employers.

Answer 3

False

Question 4

The Self-Employment Contributions Act imposes a tax on the net earnings from self-employment derived by an individual from any trade or business.

Question 5

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.

Question 6

Each state imposes an income tax on employees that is 2 percent of gross wages.

Question 7

The tax paid to the federal government for unemployment taxes is used for paying state and federal administrative expenses of the unemployment program.

Question 8

The current minimum wage set by the Fair Labor Standards Act is $7.25 per hour.

Question 9

Restrictions on the employment of child labor are established by the Federal Insurance Contributions Act.

Question 10

The employer is required by the FLSA to display a poster that informs employees of the provisions of the law.

Question 11

Under the Federal Personal Responsibility and Work Opportunity Reconciliation Act, every employer is required to report the name, address, and social security number of each new employee to the appropriate state agency.

Question 12

Under the Civil Rights Act of 1964, the U.S. government is classified as an exempt employer.

Question 13

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.

Question 14

All states have set their minimum wage to be the same as the federal government.

Question 15

Title VII of the Civil Rights Act protects all employees from arbitrary dismissal.

Question 16

One of the provisions of coverage of the Civil Rights Act is that the employer must have 15 or more workers.

Question 17

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.

Question 18

Only six states do not impose a state unemployment tax on employers in their state.

Question 19

Employers are now required to photocopy new employees' Form I-9 documents.

Question 20

Under FMLA, the time off must be used in one uninterrupted period of time.

Question 21

The trend toward outsourcing of payroll operations has weakened in recent years.

Question 22

Questions pertaining to religion, gender, national origin, or age are allowed on application forms when these are bona fide occupational qualifications for a job.

Question 23

The requisition for personnel form is sent to the Payroll Department so that the new employee can be properly added to the payroll.

Question 24

Employment application forms are usually discarded when the applicant is hired.

Question 25

If an investigative consumer report is being checked, the job applicant must be notified in writing by the employer that such a report is being sought.

Question 26

Only one state has passed a law to provide disability benefits to employees absent from their jobs due to illness, accident, or disease not arising out of their employment.

Question 27

The payroll register is a separate payroll record that is kept on each employee.

Question 28

Most firms are now using a standard reference inquiry form, supplied by the IRS.

Question 29

The amounts needed for the payroll entries in the journal come from the employee's earnings record.

Question 30

Workers' compensation insurance premiums for employers vary according to the different degrees of danger in various classes of jobs and employers' accident experience rate.

Question 31

Workers' compensation benefits are paid directly to the employer.

Question 32

ERISA provides for full vesting of the employer's contributions in three years or gradually over six.

Question 33

Under ERISA, if there is a pension plan, every employee is eligible after reaching age 21 or completing one year of service, whichever is later.

Question 34

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.

Question 35

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.

Question 36

FUTA was designed to ensure that workers who are covered by pension plans receive benefits from those plans.

Question 37

Which of the following is not 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 are part of the social security program.

Question 38

There are no states that allow employees to access their personnel files.

Question 39

Under the Family and Medical Leave Act, an employer can substitute an employee's earned paid leave for any part of the 12-week family leave.

Question 40

Which of the following is not a provision of the Fair Labor Standards Act (FLSA)?

A) Restricts the employment of child labor
B) Sets up minimum wage
C) Forbids discrimination in hiring
D) Mandates equal pay for equal work, regardless of sex
E) All are provisions of the FLSA.

Question 41

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) None of the above

Question 42

Which of the following records lists all employees who earn remuneration, the amount of remuneration, the deductions, and the net amount paid for each payroll period?

A) Employee history record
B) Payroll register
C) Change in payroll rate form
D) Reference inquiry form
E) None of the above

Question 43

The Age Discrimination in Employment Act provides protection to virtually all workers over the age of:

A) 18.
B) 65.
C) 21.
D) 55.
E) 40.

Question 44

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 the above.

Question 45

Prehire questions pertaining to religion, gender, national origin, or age are allowed if:

A) all employees are asked the same questions.
B) only foreign-born applicants are asked these questions.
C) these factors are bona fide occupational qualifications for the job.
D) they are not in written form.
E) the applicant is married.

Question 46

Which of the following forms is used to notify the Payroll Department to add a new employee to the payroll?

A) Employee's earnings record
B) Change in payroll rate form
C) Reference inquiry form
D) Hiring notice
E) None of the above

Question 47

ERISA provides for full vesting of the employer's contribution to an employee's pension fund in three years or gradually over:

A) ten years.
B) five years.
C) six years.
D) seven years.
E) No gradual vesting is allowed.

Question 48

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