Question 1

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

The statement is true. The Self-Employment Contributions Act (SECA) imposes a tax on the net earnings from self-employment, which includes income derived from any trade or business that an individual conducts as a sole proprietor or as a partner in a partnership. This tax is equivalent to the Social Security and Medicare taxes that are withheld from the paychecks of traditional employees.

Question 2

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

Accepted Answer

The tax paid to the federal government for unemployment taxes is used to fund the state and federal unemployment insurance programs, which includes administrative expenses such as processing claims and paying out benefits.

Question 3

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

Accepted Answer

Form I-9 is required to be completed by each new hire to verify their authorization to work in the United States.

Question 4

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

Accepted Answer

All states impose a state unemployment tax on employers, but the rates and conditions under which the tax is applied can vary significantly from state to state.

Question 5

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

Accepted Answer

This statement is false. Not all states impose an income tax on employees, and among those that do, the tax rate varies. Some states have a flat rate, while others have a progressive rate based on income levels. The 2 percent rate mentioned in the statement is not accurate for any particular state.

Question 6

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

Accepted Answer

Employers are not required to photocopy new employees' Form I-9 documents, but they may choose to do so. However, employers must retain the completed Form I-9 for each employee and make it available for inspection by authorized government officials.

Question 7

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.

Accepted Answer

This exception is known as the "bona fide executive" exception and allows employers to enforce mandatory retirement policies for executives over the age of 65 who have held high policy-making positions within the two years prior to retirement.

Question 8

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

Accepted Answer

Both the employer and the employee are required to pay the Medicare portion of the tax under the Federal Insurance Contributions Act.

Question 9

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

Accepted Answer

Title VII of the Civil Rights Act prohibits discrimination in employment on the basis of race, color, religion, sex, or national origin. However, it does not provide a guarantee against arbitrary dismissal. Some employees may still be terminated for reasons that are not based on discriminatory factors, such as poor performance or economic downturns.

Question 10

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.

Accepted Answer

This statement is true according to the Federal Personal Responsibility and Work Opportunity Reconciliation Act.

Question 11

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

This is true. The Civil Rights Act of 1964 applies to employers who receive federal funds through government contracts or subcontracts, even if they would not otherwise be subject to the Act's coverage based on the number of employees.

Question 12

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

Accepted Answer

Executive orders such as Executive Order 11246 and Executive Order 11478 have been issued to prohibit discrimination in employment on federal government contracts.

Question 13

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

Accepted Answer

The Fair Labor Standards Act (FLSA) is commonly referred to as the Federal Wage and Hour Law.

Question 14

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.

Accepted Answer

The Walsh-Healey Public Contracts Act requires that contracts valued at $10,000 or more be subject to provisions protecting the laborers employed in the production of the materials furnished to any agency of the United States.

Question 15

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

Accepted Answer

The Fair Labor Standards Act (FLSA) does require employers to display a poster that explains the provisions of the law. This poster should be posted in a prominent place where all employees can see it.

Question 16

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

Accepted Answer

While the federal government sets a minimum wage, individual states have the power to set their own minimum wage, which can be higher than the federal minimum wage. Therefore, not all states have set their minimum wage to be the same as the federal government.

Question 17

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

Accepted Answer

The Civil Rights Act applies to employers with 15 or more employees. This provision applies to Title VII of the Civil Rights Act, which prohibits employment discrimination based on race, color, religion, sex, or national origin.

Question 18

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

Accepted Answer

The Civil Rights Act of 1964 exempts the U.S. government from some provisions related to employment discrimination, such as those related to hiring preferences for minority groups. However, the government is still subject to other provisions of the law, such as those related to retaliation against employees who engage in protected activities.

Question 19

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

Accepted Answer

The FLSA (Fair Labor Standards Act) does not provide health insurance for the aged and disabled. Medicare is actually provided through the Social Security Act.

Question 20

The FLSA imposes no recordkeeping requirements on employers.

Accepted Answer

The FLSA imposes recordkeeping requirements on employers, including keeping records of hours worked, wages paid, and other information related to employment.

Quiz 1: The Need for Payroll and Personal Records