Question 1

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

Accepted Answer

Piece-rate pay is used for employees who are paid based on the number of pieces they produce or complete, not for participating in the sale of manufacturing components.

Question 2

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 3

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 compensation an employee earns before any deductions or withholdings are taken out.

Question 4

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

Accepted Answer

Payroll registers should be retained for a specific period as required by law or company policy, but not indefinitely. The retention period varies by jurisdiction and company needs.

Question 5

The payroll register is a confidential company document.

Accepted Answer

The payroll register contains sensitive and confidential information about employee wages, salaries, and other compensation. It is intended for internal use only and should be kept confidential to maintain the privacy and security of employee information.

Question 6

Federal policy explains clear differences between exempt and nonexempt employees.

Accepted Answer

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

Question 7

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, the employer is allowed to pay a lower minimum wage to tipped employees as long as their tips bring their total hourly wage up to the federal minimum wage. In this case, Vincent's hourly wage including tips was less than the federal minimum wage, so his employer must make up the difference and pay him the tip credit. Vincent must report his tips for income tax purposes and there is no need to file a request to have the tip credit applied. Option A is incorrect because all tipped income must be reported, regardless of the amount. Option B is incorrect because the employer must report all tipped income for income tax purposes.

Question 8

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 typically those who perform operative or production tasks and are eligible for overtime pay. They are not exempt from labor laws and regulations like exempt employees who may hold executive positions or have supervisory roles.

Question 9

Salaried employees may be classified as nonexempt.

Accepted Answer

It is possible for salaried employees to be classified as nonexempt, meaning they are entitled to overtime pay for any hours worked above 40 in a workweek. However, some salaried employees may also be classified as exempt, meaning they are not entitled to overtime pay. It depends on the specific job duties and qualifications outlined by the Fair Labor Standards Act (FLSA) and state labor laws.

Question 10

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 calculation assumes that the employee works 52 weeks in a year (40 hours per week x 52 weeks = 2,080 hours). Therefore, dividing the annual salary by 2,080 will give you the hourly rate.

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 are those who typically receive tips from customers in addition to their regular wages. This is a regular part of their job, and they are often paid a lower base wage (minimum wage for tipped employees) with the expectation that they will earn additional income through tips. The minimum wage for tipped employees can vary by state, and it is not always consistent across all states. Tipped employees may also receive occasional tips from other employees, but their main source of additional income is from customers. They are not required to earn a specific percentage of their income from tips, but if their total income (including tips) does not meet the minimum wage requirements, their employer is required to make up the difference.

Question 12

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 their job duties and whether or not they receive tips. The tipped wage, on the other hand, is a lower rate that applies specifically to employees who receive tips, such as servers or bartenders. The difference between these two rates is intended to account for the income that tipped employees receive in addition to their wages.

Question 13

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

Accepted Answer

The FLSA (Fair Labor Standards Act) applies to most employers and employees in the United States. There is no exemption based on the number of employees a firm has. However, there are certain exemptions for specific types of employees, such as executive, administrative, and professional employees, as well as some exemptions for certain industries and types of work.

Question 14

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 15

Which of the following automatically exempts an employer from FLSA provisions? (You may select more than one answer. )
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 16

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 17

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 such as babysitters are not subject to FLSA regulations if they earn less than a certain threshold amount per year. As Paloma earned $1,250 in a calendar year, she does not earn enough to be considered a domestic employee and consequently, FLSA rules do not apply.

Question 18

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 is the minimum standard that all employers must meet, but if the state minimum wage is higher, then employers in that state must pay the state minimum wage. Therefore, even if the federal minimum wage is lower, employers in Santa Fe must pay the higher state-designated minimum wage.

Question 19

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 track their time to the nearest hundredth of an hour, which promotes greater accuracy in time collection than the quarter-hour system, which only allows tracking to the nearest 15 minutes.

Question 20

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

Accepted Answer

Compensatory time, or "comp time," is federally mandated only for public sector employees under the Fair Labor Standards Act (FLSA), allowing them to receive time off in lieu of overtime pay. Private sector salaried exempt employees are not covered by this provision.

Quiz 3: Gross Pay Computation

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

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

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

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

The payroll register is a confidential company document.

Federal policy explains clear differences between exempt and nonexempt 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?

Nonexempt employees are usually workers who:

Salaried employees may be classified as nonexempt.

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

Which of the following is always true about tipped employees?

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

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

Any employee may request a payroll draw against future earnings.

Which of the following automatically exempts an employer from FLSA provisions? (You may select more than one answer. )

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

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?

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?

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

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