Question 1

Cyrus is a tipped employee in Illinois. He is single with one withholding allowance and the minimum cash wage in Illinois is $4.95 per hour for a 40-hour workweek. The tip credit in Illinois is $3.30 per hour (i.e., the minimum wage in Illinois is $8.25 per hour), and tips are included in
Overtime calculations. During a one-week period, Cyrus worked 52 hours and earned $180 in tips. What is his gross pay? (Do not round
Intermediate calculations. Round your answer to 2 decimal places.)

Accepted Answer

A)  $351. 
B)  $467.10 
C)  $426.80 
D)  $510.

Question 2

Any employee may request a payroll draw against future earnings.

Accepted Answer

A) True 
 B)False

Question 3

Indra is an employee who is required to be on-call at her employer's site once per month for eight hours. She earns a salary of $58,750 per year for a 45-hour workweek and is paid biweekly. What is Indra's gross pay for a pay period that includes on-call time? (Do not round intermediate
Calculations. Round your answer to 2 decimal places.)

Accepted Answer

A)  $2,648.77 
B)  $2,259.62 
C)  $2,460 
D)  $2,447.92

Question 4

Lawrin is a real-estate salesperson whose compensation is commission-only. She earns a 3% commission on the sale price of each house that she sells and receives 1.5% commissions at the end of each month (the broker retains the rest per the employment agreement). During the
Month of July, Lawrin sold two houses totaling $385,420. What is her gross pay for the month of July?

Accepted Answer

A)  $11,562. 
B)  $5,620. 
C)  $5,781.30 
D)  $8,623.50

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

Breon works as a clerk in the human resources department for her company for which she receives an hourly rate of $9.50. Occasionally she ﬁlls in for the receptionist at the front desk and receives a $1.50 per hour differential. During a weekly pay period, she worked 35 hours in the
Human resources department and 5 hours at the front desk. What is Breon's gross pay for the week?

Accepted Answer

A)  $347.50 
B)  $387.50 
C)  $393. 
D)  $380.

Question 7

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?

Accepted Answer

A)  Paloma does not earn enough to be considered a domestic employee so FLSA rules do not apply. 
B)  The family must treat her as a domestic employee and abide by FLSA regulations. 
C)  Paloma is not considered an employee, but certain FLSA provisions apply. 
D)  Since the family conducts no interstate commerce, FLSA provisions cannot apply.

Question 8

Salaried employees may be classiﬁed as nonexempt.

Accepted Answer

A) True 
 B)False

Question 9

Bruce is a salaried nonexempt employee who earns $42,500 annually, paid semimonthly, plus a 0.25% commission on all regional sales, paid monthly on the ﬁrst pay date of the following month. During the month of May, the regional sales were $103,500. What was his gross pay for the
ﬁrst half of June? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Accepted Answer

A)  $1,893.37 
B)  $1,770.83 
C)  $2,029.58 
D)  $1,634.62

Question 10

The payroll register is a conﬁdential company document.

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

Brandie is an hourly worker whose employer uses the quarter-hour method. During a one-week period, she worked the following hours: Day In Out In Out
Monday 8:03 12:00 1:03 5:04
Tuesday 7:57 11:45 12:42 4:56
Wednesday 8:08 12:15 1:20 5:03
Thursday 8:02 12:28 1:25 4:58
Friday 7:52 12:05 12:58 5:12
Using the quarter-hour method, how many hours did she work that week?

Accepted Answer

A)  39.75 hours 
B)  39.50 hours 
C)  40.25 hours 
D)  40.00 hours

Question 13

Robin, 18 years of age, is an hourly worker in her college's bookstore in Washington State. She works 37 hours during a two-week pay period in her second month of work for the bookstore. The minimum gross pay that she may receive for that two-week period is ________. (Round to the
Nearest cent.)

Accepted Answer

A)  $344.84 
B)  $157.25 
C)  $228.01 
D)  $268.25

Question 14

Naveen is a salaried nonexempt employee who earns annually $39,500 for a 40-hour workweek that is paid semimonthly. He is occasionally on- call for his employer. During the on-call time, Naveen is required to be available for phone calls and must have internet access, but is otherwise
Able to pursue his own interests. Company policy allows for four hours of regular pay for each day that the employee is on-call. How much
Should Naveen's gross pay be for a pay period in which he is on-call for three days? (Do not round intermediate calculations. Round your answer
To 2 decimal places.)

Accepted Answer

A)  $1,721.79 
B)  $1,873.72 
C)  $1,747.12 
D)  $1,645.83

Question 15

A nonexempt, salaried worker who received $46,500 in annual compensation for a 40-hour standard workweek has an hourly rate of ________. (Round your answer to 2 decimal places.)

Accepted Answer

A)  $22.86 
B)  $22.64 
C)  $23.26 
D)  $22.36

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

Libby is an hourly employee who earns $14.32/hour. She is paid overtime only for hours worked past 40 in one week. During a weekly pay period, she worked the following hours:
Day Hours Minutes
Monday 8 47
Tuesday 8 22
Wednesday 6 25
Thursday 9 6
Friday 7 58
What is the difference between her pay using the quarter-hour and the hundredth-hour methods? Which method pays Libby the greater
Amount? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Accepted Answer

A)  $2.86; Hundredth-hour 
B)  $1.07; Hundredth-hour 
C)  $2.86; Quarter-hour 
D)  $1.07; Quarter-hour

Question 18

Taylor is an outside salesperson for a ﬁrm in Idaho. She earns a 10% commission on all sales she makes. During a one-week pay period, she made $2,750 in sales. What is her gross pay? How much does her employer need to contribute toward her pay to meet FLSA standards?

Accepted Answer

A)  $455; $0 
B)  $250; $205 
C)  $275; $0 
D)  $275; $180

Question 19

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?

Accepted Answer

A)  Nicholas must maintain a log of miles driven to document his activities. 
B)  Nicholas will receive compensation for wait time when it is for the ﬁrm's beneﬁt. 
C)  Nicholas will not receive compensation for idle times when is waits for the executive to conduct business. 
D)  Nicholas will be compensated only for the hours during which he is driving.

Question 20

Betsy is a salaried nonexempt worker who earns $39,500 per year for a 40-hour workweek. During a weekly pay period, she worked the following hours:
Day Hours Minutes
Monday 8 22
Tuesday 8 45
Wednesday 9 43
Thursday 7 33
Friday 8 8
Her employer uses a hundredth-hour method to compute overtime pay. The employer pays overtime for all time worked in excess of 40 hours
Per week. What is Betsy's gross pay for the week? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Accepted Answer

A)  $831.30 
B)  $799.52 
C)  $759.62 
D)  $819.44

Exam 3: Gross Pay Computation

Any employee may request a payroll draw against future earnings.

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

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?

Salaried employees may be classiﬁed as nonexempt.

The payroll register is a conﬁdential company document.

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

Robin, 18 years of age, is an hourly worker in her college's bookstore in Washington State. She works 37 hours during a two-week pay period in her second month of work for the bookstore. The minimum gross pay that she may receive for that two-week period is ________. (Round to the Nearest cent.)

A nonexempt, salaried worker who received $46,500 in annual compensation for a 40-hour standard workweek has an hourly rate of ________. (Round your answer to 2 decimal places.)

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

Taylor is an outside salesperson for a ﬁrm in Idaho. She earns a 10% commission on all sales she makes. During a one-week pay period, she made $2,750 in sales. What is her gross pay? How much does her employer need to contribute toward her pay to meet FLSA standards?

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?