Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

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?

Accepted Answer

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

Question 4

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.

Accepted Answer

A) True 
 B)False

Question 5

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

Accepted Answer

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 6

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.

Accepted Answer

A) True 
 B)False

Question 7

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.

Accepted Answer

A) True 
 B)False

Question 8

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?

Accepted Answer

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

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

Form I-9, which is completed by each employee, deals with:

Accepted Answer

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 13

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

Accepted Answer

A) True 
 B)False

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

Which of the following is not part of the social security program?

Accepted Answer

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 16

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

Accepted Answer

A) True 
 B)False

Question 17

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

Accepted Answer

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

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

The FLSA imposes no recordkeeping requirements on employers.

Accepted Answer

A) True 
 B)False

Exam 1: The Need for Payroll and Personnel Records

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

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

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?

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.

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

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.

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.

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?

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

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

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

Form I-9, which is completed by each employee, deals with:

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

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

Which of the following is not part of the social security program?

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

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

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

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

The FLSA imposes no recordkeeping requirements on employers.