Question 1

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 2

Thaddeus is a salaried exempt worker who earns $57,500 per year for a 45-hour workweek.During a biweekly pay period,he worked 105 hours.What is his gross pay?

Accepted Answer

A)  $2,211.54 
B)  $2,764.42 
C)  $2,395.83 
D)  $2,579.85

Question 3

Lloyd is the CFO for a firm that uses ISOs as part of its executive compensation plan.He receives $150,000 annually,paid semimonthly,in base salary plus 25 shares of the firm's stock per month.The stock is omitted from gross pay calculations and is valued at $52.50 per share and he may exercise his option within five years at $0.10 per share.What is Lloyd's gross pay for mid-October?

Accepted Answer

A)  $7,250 
B)  $6,250 
C)  $7,560 
D)  $8,250

Question 4

Cole is a minimum wage employee in Santa Fe,NM,where the minimum wage is $10.91 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?

Accepted Answer

A)  The employer has the discretion to pay either the Federal or the state-designated minimum wage. 
B)  The employer may choose to pay less than the state-designated minimum wage,based on the
Employee's qualifications and job description. 
C)  The employer is correct that the Federal minimum wage overrules the state wage. 
D)  The employer must pay the state-designated minimum wage for the area.

Question 5

Joanna,a salaried nonexempt employee,earns a salary of $38,950 for a standard 37.5-hour workweek and is paid weekly.During a weekly period,she worked 6 hours of overtime.Her gross pay for the week would be_______________.(Do not round interim calculations.Round final answer to two decimal places. )

Accepted Answer

A)  $928.81. 
B)  $936.52. 
C)  $868.88. 
D)  $894.22.

Question 6

Which of the following is true about salaried employees (Select all that apply)?

Accepted Answer

A)  They are not subject to provisions of FLSA. 
B)  The minimum wage is $7.25 per hour. 
C)  They may not work more than 45 hours per week. 
D)  The minimum annual salary as of December 2016 is $47,476.

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

The difference between the tipped employee minimum wage and the Federal minimum wage is called the ___________________________________.

Accepted Answer

A)  Tip allowance. 
B)  Wage credit. 
C)  Tip credit. 
D)  Wage allowance.

Question 9

A nonexempt,salaried worker who received $46,500 in annual compensation for a 40-hour standard workweek has an hourly rate of _________.(Round to nearest cent)

Accepted Answer

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

Question 10

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 her gross pay for the first half of June? (Do not round intermediate calculations.Round final answer to 2 decimal places. )

Accepted Answer

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

Question 11

Maryann is a salaried exempt worker who earns $45,000 per year for a 35-hour workweek.During a biweekly pay period,she worked 65 hours.What is her gross pay?

Accepted Answer

A)  $1,607.45 
B)  $1,730.77 
C)  $1,916.21 
D)  $1,823.45

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

Dorothy is a full-time student in a medical assisting program at a vocational education program.She works part-time for a nursing home as a nurse's assistant and worked 17.5 hours during the last weekly pay period.What should Dorothy's gross pay be for that week? (Do not round interim calculations.Round final answer to two decimal places. )

Accepted Answer

A)  $290.00 
B)  $170.00 
C)  $147.25 
D)  $95.16

Question 14

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 include on-call time? (Do not round interim calculations.Round final answer to two decimal places. )

Accepted Answer

A)  $2,447.92 
B)  $2,259.62 
C)  $2,460.47 
D)  $2,648.77

Question 15

Adrienne worked 88 hours during a biweekly period.Her standard workweek comprises 38.5 hours and company policy states that employees may receive overtime or compensatory time for hours worked in excess of 38.5.She has requested compensatory time in lieu of overtime,in keeping with company policy.She must receive _____________ hours of compensatory time.

Accepted Answer

A)  11.5 
B)  16.5 
C)  15.5 
D)  13.5

Question 16

Brendan is an hourly worker.During a week's pay period,he worked the following hours and minutes:
 Using the quarter-hour method,how many total hours did Brendan work that week?

Accepted Answer

A)  41.75 hours 
B)  42.50 hours 
C)  43.25 hours 
D)  42.25 hours

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:
 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 interim calculations.Round final answer to two decimal places. )

Accepted Answer

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

Question 18

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?

Accepted Answer

A)  $7.25 per hour 
B)  $4.25 per hour 
C)  $6.16 per hour 
D)  $5.80 per hour

Question 19

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

Question 20

Andre is works for a bakery as a cake decorator and receives a base annual salary of $30,000 (paid weekly)as well as piece-rate pay of 25% of the retail price for any wedding cake that he decorates.His piece-rate earnings are totaled on a monthly basis and are paid on the first pay date of the following month.During the month of June,he decorated eight wedding cakes with a total retail value of $2,650.What is Andre's gross pay for the first week in July? (Do not round intermediate calculations.Round final answer to 2 decimal places. )

Accepted Answer

A)  $1,427.53 
B)  $1,485.96 
C)  $1,239.42 
D)  $1,526.78

Exam 3: Gross Pay Computation

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

Thaddeus is a salaried exempt worker who earns $57,500 per year for a 45-hour workweek.During a biweekly pay period,he worked 105 hours.What is his gross pay?

Cole is a minimum wage employee in Santa Fe,NM,where the minimum wage is $10.91 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?

Joanna,a salaried nonexempt employee,earns a salary of $38,950 for a standard 37.5-hour workweek and is paid weekly.During a weekly period,she worked 6 hours of overtime.Her gross pay for the week would be_______________.(Do not round interim calculations.Round final answer to two decimal places. )

Which of the following is true about salaried employees (Select all that apply) ?

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

The difference between the tipped employee minimum wage and the Federal minimum wage is called the ___________________________________.

A nonexempt,salaried worker who received $46,500 in annual compensation for a 40-hour standard workweek has an hourly rate of _________.(Round to nearest cent)

Maryann is a salaried exempt worker who earns $45,000 per year for a 35-hour workweek.During a biweekly pay period,she worked 65 hours.What is her gross pay?

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

Brendan is an hourly worker.During a week's pay period,he worked the following hours and minutes: Using the quarter-hour method,how many total hours did Brendan work that week?

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?

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?