Deck 1: The Need for Payroll and Personal Records

Question 1

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.

Answer 1

True

Question 2

The Fair Labor Standards Act is commonly known as the Federal Wage and Hour Law.

Answer 2

True

Question 3

The FLSA imposes no recordkeeping requirements on employers.

Answer 3

False

Question 4

Employers not subject to

Question 5

Under the Federal Insurance Contributions Act, the Medicare portion of the tax is only paid by the employer.

Question 6

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

Question 7

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

Question 8

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 9

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

Question 10

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

Question 11

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 12

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

Question 13

The FLSA provides health insurance for the aged and disabled
(Medicare).

Question 14

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

Question 15

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

Question 16

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

Question 17

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

Question 18

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 19

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

Question 20

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

Question 21

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

Question 22

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 23

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 24

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

Question 25

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

Question 26

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

Question 27

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 28

Under ERISA, vesting conveys to employees the right to share in aretirement age.

Question 29

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

Question 30

Under the Family and Medical Leave Act, employers can exempt an employee who has not worked for the employer for at least 1 year and has worked for the company at least 1,250 hours in the last year.

Question 31

Workers' compensation benefits are paid directly to the employer.

Question 32

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 33

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

Question 34

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 35

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

Question 36

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 37

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

Question 38

The total cost of workers' compensation insurance is borne by the
employees.

Question 39

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

Question 40

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

Question 41

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 42

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

Question 43

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 44

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 45

Pre-hire 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 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 47

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

A)50.
B)65.
C)70.
D)75.
E)40.

Question 48

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 49

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 50

Which of the following laws establishes the minimum wage?

A)Fair Labor Standards Act
B)Federal Income Tax Act
C)Federal Insurance Contributions Act
D)Federal Unemployment Tax Act
E)Fair Employment Laws