Question 1

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

Accepted Answer

The tipped minimum wage of $2.13 per hour is a federal standard, but many states have set higher minimum wages for tipped employees.

Question 2

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

Accepted Answer

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

Question 3

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

Accepted Answer

In a tip-credit state, an employer may pay a lower wage to tipped employees as long as the combined amount of their wage and tips equals at least the Federal minimum wage. As Vincent earned only $60 in tips last week, his total earnings (including his $2.13 per hour wage) may not have equaled the Federal minimum wage. In this case, Vincent's employer is required to pay him the tip credit to make up the difference between his total earnings and the minimum wage. Therefore, choice C is correct. Choices A, B, and D are all incorrect.

Question 4

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

Accepted Answer

According to the Fair Labor Standards Act (FLSA), domestic employees who earn less than $2,200 per year are not considered employees and are therefore not subject to FLSA regulations. Since Paloma earned $1,250 in a calendar year, she does not earn enough to be considered a domestic employee under FLSA rules.

Question 5

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

Accepted Answer

The hundredth-hour system allows employees to record their time worked more accurately than the quarter-hour system, which only allows for time to be rounded to the nearest fifteenth minute. The hundredth-hour system is more precise and accounts for each minute worked.

Question 6

Any employee may request a payroll draw against future earnings.

Accepted Answer

The ability for an employee to request a payroll draw against future earnings is typically subject to the policies of the specific employer and is not universally available to all employees.

Question 7

Federal policy explains clear differences between exempt and nonexempt employees.

Accepted Answer

The answer of Federal policy explains clear differences between exempt...

Question 8

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

Accepted Answer

To rule the payroll register means to calculate and record the totals of the various columns in the payroll register, not to establish procedures about it.

Question 9

Salaried employees may be classified as nonexempt.

Accepted Answer

Salaried employees can be classified as either exempt or nonexempt, depending on factors such as job duties, pay level, and whether they meet certain criteria outlined in the Fair Labor Standards Act. Nonexempt salaried employees are entitled to overtime pay for any hours worked beyond 40 hours in a week.

Question 10

The payroll register is a confidential company document.

Accepted Answer

The payroll register contains sensitive and confidential information such as employee salaries, social security numbers, and tax withholdings. Therefore, it is important to keep it confidential and limit access to authorized personnel only.

Question 11

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

Accepted Answer

Tipped employees have the opportunity to earn tips from patrons as a regular part of their job. The other statements are not always true; the minimum wage for tipped employees varies among states and they are not required to earn more than 50% of their income from tips. Additionally, employees do not typically tip each other.

Question 12

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

Accepted Answer

The answer of Which of the following automatically exempts an...

Question 13

As of December 2016,the minimum wage for salaried employees is:
A) $893/week.
B) $903/week.
C) $913/week.
D) $923/week.

Accepted Answer

As of December 2016, the minimum wage for salaried employees was $913/week. This was set by the United States Department of Labor's Fair Labor Standards Act, and it applied to employees who were exempt from overtime pay under the executive, administrative, or professional exemptions.

Question 14

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

Accepted Answer

A firm may still be subject to some or all of the FLSA provisions even if it has fewer than 5 employees, depending on factors such as the type of work performed and annual dollar volume of business.

Question 15

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

Accepted Answer

Nonexempt employees are those who perform operative level tasks and are entitled to overtime pay for any additional hours worked beyond the standard working hours. They are typically not in supervisory or executive positions and are subject to company rules and regulations.

Question 16

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?
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.

Accepted Answer

In this situation, the employer must pay the state-designated minimum wage for the area, which is $10.91 per hour in Santa Fe, NM. The Federal minimum wage serves as a baseline, but if the state minimum wage is higher, employers must comply with the state law.

Question 17

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

Accepted Answer

Gross pay is the total amount of money earned by an employee before any deductions are taken out, such as taxes or other withholdings.

Question 18

The difference between the Federal minimum wage and the tipped wage involves:
A) The type of work the employee performs.
B) An employee's qualifications for the job.
C) The size of the town in which the employers is located.
D) Supervisory reviews about the employee's performance.

Accepted Answer

The Federal minimum wage applies to all employees regardless of whether they receive tips or not. The tipped wage is a lower minimum wage rate that applies only to employees who receive tips as a significant portion of their income, such as restaurant servers. The difference is based on the type of work performed, not qualifications, location, or performance reviews.

Question 19

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

This is true as there are 2,080 hours in a standard workyear (52 weeks x 40 hours per week), so dividing the annual salary by 2,080 will give you the hourly rate.

Question 20

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

Accepted Answer

Piece-rate pay is typically used in jobs where employees are paid based on the amount of work they produce, rather than participation in the sale of components. Examples of jobs that may use piece-rate pay include farming, manufacturing, and construction.

Quiz 3: Gross Pay Computation

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

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

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?

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?

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

Any employee may request a payroll draw against future earnings.

Federal policy explains clear differences between exempt and nonexempt employees.

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

Salaried employees may be classified as nonexempt.

The payroll register is a confidential company document.

Which of the following is always true about tipped employees?

Which of the following automatically exempts an employer from FLSA provisions (Select all that apply) ?

As of December 2016,the minimum wage for salaried employees is:

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

Nonexempt employees are usually workers who:

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?

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

The difference between the Federal minimum wage and the tipped wage involves:

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

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