Deck 3: Social Security Taxes

Question 1

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

Answer 1

Vincent's employer must pay him the tip credit because his wages and tips for the week were less than the federal minimum wage.

Question 2

Gross pay is the amount of employee compensation prior to deducting any amounts for taxes or other withholdings.

Answer 2

True

Question 3

The payroll register is a confidential company document.

Answer 3

True

Question 4

Federal policy explains clear differences between exempt and nonexempt employees.

Question 5

The payroll register should be retained indefinitely, unlike most other payroll documentation.

Question 6

The difference between the federal minimum wage and the tipped wage involves:
• The size of the town in which the employers are located.
• An employee's qualifications for the job.
• Supervisory reviews about the employee's performance.
• The type of work the employee performs.

Question 7

The tipped minimum wage is $2.13 per hour for all states.

Question 8

A firm is always exempt from FLSA provisions if it has fewer than 5 employees.

Question 9

Cole is a minimum wage employee in Santa Fe, NM, where the minimum wage is $11.80 per hour. His employer claims that since the federal minimum wage is $7.25 per hour, Cole should only receive the federal amount. What is the correct answer in this situation?
• The employer is correct that the federal minimum wage overrules the state wage.
• The employer may choose to pay less than the state-designated minimum wage, based on the employee's qualifications and job description.
• The employer has the discretion to pay either the federal or the state-designated minimum wage.
• The employer must pay the state-designated minimum wage for the area.

Question 10

Piece-rate pay is used for employees who participate materially in the sale of manufacturing components.

Question 11

Which of the following automatically exempts an employer from FLSA provisions? (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.)
• The firm is a governmental agency.
•The firm conducts no interstate commerce.
• The firm is a school for physically handicapped children.
• The firm has annual volume of less than $500,000.

Question 12

Which of the following is always true about tipped employees?
• The minimum wage for tipped employees is consistent among all states.
• They only earn occasional tips from other employees.
• They must earn more than 50% of their income from tips.
• They have the opportunity to earn tips from patrons as a regular part of their job.

Question 13

To rule the payroll register means that the payroll accountant establishes procedures about the payroll register.

Question 14

Nonexempt employees are usually workers who:
• Routinely supervise other employees.
• Are exempt from certain company rules.
• Occupy executive positions in the company.
• Perform operative level tasks.

Question 15

To compute the hourly rate for an employee with a 40-hour standard workweek, you would divide the annual salary by 2,080.

Question 16

Any employee may request a payroll draw against future earnings.

Question 17

Paloma is a 16-year-old who babysits for a local family on an occasional basis. During a calendar year, she earned $1,250 in babysitting wages. What is true about Paloma's wages?
• Paloma does not earn enough to be considered a domestic employee so FLSA rules do not apply.
• The family must treat her as a domestic employee and abide by FLSA regulations.
• Paloma is not considered an employee, but certain FLSA provisions apply.
• Since the family conducts no interstate commerce, FLSA provisions cannot apply.

Question 18

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

Question 19

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

Question 20

Salaried employees may be classified as nonexempt.

Question 21

Which of the following is true about salaried employees? (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.)
• The minimum wage is $7.25 per hour.
• They may not work more than 45 hours per week.
• They are not subject to provisions of FLSA.
• The minimum annual salary is $23,660.

Question 22

Nicholas is the driver for a company executive. He is paid $13.50 per hour for his services and overtime only for hours worked in excess of 40 hours per week. His actual driving time varies, depending on the needs of the executive. Which of the following is true about Nicholas's compensation?
• Nicholas must maintain a log of miles driven to document his activities.
• Nicholas will receive compensation for wait time when it is for the firm's benefit.
• Nicholas will not receive compensation for idle times when is waits for the executive to conduct business.
• Nicholas will be compensated only for the hours during which he is driving.

Question 23

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?
• $4.25 per hour
• $6.16 per hour
• $5.80 per hour
• $7.25 per hour

Question 24

are always exempt from FLSA provisions.
• Non-profit firms
• Hospitals
• Government agencies
• Nannies with annual earnings of $2,100

Question 25

Susan travels among client sites as a routine part of her employment. Travel to her first customer site and from the last customer site to her home are not compensated. Under which of the following circumstances will she be compensated for her travel? (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.)
• Travel between client sites and the firm's office.
• Travel from the client site to a personal dinner engagement at the end of the workday.
• Travel from her home to the client site at the beginning of the workday.
• Travel to alternate sites for the firm's meetings with multiple clients.

Question 26

The difference between the tipped employee minimum wage and the federal minimum wage is called the .
• Wage allowance
• Wage credit
• Tip credit
• Tip allowance

Question 27

Which of the following is not a class of worker that may receive an hourly rate below the Federal minimum wage?• A 16 year-old employee in the first 90 days of work.
• Full-time college students in agricultural occupations.
• A student learner currently enrolled in a vocational education program.
• Disabled employees in occupations unrelated to their disability.

Question 28

The minimum wage for salaried employees is:
• $455/week.
• $523/week.
• $476/week.
• $513/week.

Question 29

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