Question 1

Leased employees must have the following characteristics: (You may select more than one answer. )
A)They must work full-time.
B)They must work part-time.
C)The recipient company must substantially direct their work activities.
D)A formal agreement between the employee and employer must exist.

Accepted Answer

The answer of Leased employees must have the following characteristics:...

Question 2

What is the difference in pay practices between salaried exempt and salaried nonexempt workers?
A)Salaried exempt workers may only work eight hours per day.
B)Salaried nonexempt workers must not work overtime hours.
C)Salaried exempt workers must work between 45 and 50 hours per week.
D)Salaried nonexempt workers are eligible for overtime pay.

Accepted Answer

Salaried exempt workers are typically exempt from receiving overtime pay, regardless of the number of hours worked. Salaried nonexempt workers, on the other hand, are still salaried but are eligible for overtime pay if they work more than 40 hours in a workweek.

Question 3

The IRS stipulates that no more than ________ percent of a company's employees may be leased employees.
A)10
B)20
C)30
D)40

Accepted Answer

According to the IRS, no more than 20% of a company's employees may be leased employees. Therefore, the best choice is B.

Question 4

A ________ employee is eligible for company benefits whereas a ________ employee is not.
A)independent contractor;temporary
B)temporary;part-time
C)leased;temporary
D)temporary;leased

Accepted Answer

A leased employee is eligible for company benefits, whereas a temporary employee typically is not.

Question 5

Upon termination from a firm,the employer must disburse the former employee's final pay ________.
A)immediately
B)within 24 hours
C)at the next scheduled payday
D)in accordance with state law

Accepted Answer

The timing of the final paycheck is governed by state law, which varies from state to state. Some states require immediate payment, while others allow payment at the next scheduled payday or within a certain number of days.

Question 6

Which of the following is an example of a typical exempt salaried employee?
A)Operations Manager.
B)Accounting Clerk.
C)Administrative Assistant.
D)Machine Operator.

Accepted Answer

An Operations Manager is typically an exempt salaried employee who is responsible for managing a department or function within an organization. Accounting Clerks, Administrative Assistants, and Machine Operators are typically classified as nonexempt hourly employees.

Question 7

FATCA enforcement has been difficult because the Internal Revenue Service relies on ________ for reporting purposes.
A)intermediaries (e.g. ,banks)
B)employers and employees
C)foreign countries
D)personal income tax returns

Accepted Answer

FATCA requires foreign financial institutions to report information about U.S. account holders to the IRS, making intermediaries like banks and other financial institutions a key source of information for reporting purposes.

Question 8

Personnel in certain full-time occupations are classified as ________ instead of independent contractors.
A)contract employees
B)executive workers
C)statutory employees
D)non-statutory workers

Accepted Answer

Personnel who meet certain criteria outlined in the tax code, such as delivery drivers, full-time life insurance agents, and full-time traveling salespeople, are classified as statutory employees. They are not considered independent contractors but are still not considered traditional employees.

Question 9

Jeremiah is a salaried exempt worker whose standard workday consists of eight-hour shifts.During a workweek,he exceeded eight hours of work on two separate days but did not exceed 40 hours during the work week.What is the FLSA provision for the time that he worked past eight hours in a single day?
A)He must be compensated at overtime rates for any hours past eight in a single day.
B)He must reduce the time he works on subsequent days.
C)He must alert his manager of the extra time on the next business day.
D)He will receive no additional compensation for the extra time worked.

Accepted Answer

According to the FLSA, salaried exempt workers are not entitled to overtime pay for hours worked past eight in a single day as their pay is based on an annual salary rather than an hourly wage. Therefore, Jeremiah will receive no additional compensation for the extra time worked.

Question 10

________ payroll is processed every two weeks and will usually result in a lower gross pay per pay period than ________ payroll.
A)Weekly;monthly
B)Semimonthly;biweekly
C)Biweekly;semimonthly
D)Daily;biweekly

Accepted Answer

Biweekly payroll is processed every two weeks, while semimonthly payroll is processed twice a month. Biweekly payroll usually results in a lower gross pay per pay period as there are slightly fewer pay periods in a year compared to semimonthly payroll.

Question 11

Verification of hours worked and pay accuracy is part of the ________.
A)disbursement cycle
B)accounts payable reconciliation
C)CEO's responsibility
D)payroll review process

Accepted Answer

Verification of hours worked and pay accuracy is part of the payroll review process. The disbursement cycle is the process of making payments to vendors, while accounts payable reconciliation is the process of ensuring that the company's records match its outstanding bills. The CEO is responsible for overseeing the organization as a whole, but not specifically for verifying hours worked and pay accuracy.

Question 12

Individuals classified as ________ are processed as vendors of a firm.
A)exempt employees
B)nonexempt employees
C)government contract employees
D)independent contractors

Accepted Answer

Independent contractors are not technically employees of the firm, but rather vendors who provide a service or product to the company. They are responsible for their own taxes and benefits, and are not subject to the same regulations and protections as employees.

Question 13

Adrienne is a nonexempt employee who works for a firm that has an elected workweek composed of four 10-hour days and pays overtime after 40 hours worked per week.What is the rule about overtime for her work situation?
A)She must be compensated for all hours worked past 8 in a single day.
B)She will receive overtime pay when working more than 10 hours during a shift.
C)She receives overtime only when she works past 40 hours in any given week.
D)She is not eligible for overtime pay.

Accepted Answer

Adrienne will only receive overtime pay when she works past 40 hours in any given week, as her firm has a workweek composed of four 10-hour days and pays overtime after 40 hours worked per week.

Question 14

Payroll records that contain evidence of fraud or other illegal action must be ________.
A)retained for two years
B)destroyed immediately
C)retained indefinitely
D)released to law enforcement officials

Accepted Answer

Payroll records that contain evidence of fraud or other illegal action should be retained indefinitely. This is because such records may serve as evidence in potential legal proceedings, and the statute of limitations for certain crimes may be longer than two years. It is important to consult with legal counsel to determine the appropriate retention period for such records.

Question 15

________ pay is based on sales revenue,while ________ pay is based on production of good or service.
A)Exempt;nonexempt
B)Commission;overtime
C)Piece-rate;commission
D)Commission;piece-rate

Accepted Answer

Commission pay is based on sales revenue, while piece-rate pay is based on the production of goods or services.

Question 16

Form I-9 is issued by the ________ to verify employment eligibility in the United States.
A)Internal Revenue Service
B)Department of Homeland Security
C)Federal Bureau of Investigation
D)Department of Labor

Accepted Answer

Form I-9 is issued by the Department of Homeland Security to verify employment eligibility in the United States. The Internal Revenue Service is responsible for collecting taxes, the Federal Bureau of Investigation is responsible for law enforcement, and the Department of Labor is responsible for labor policies and regulations.

Question 17

According to the Fair Labor Standards Act,nonexempt workers receive overtime for:
A)Hours worked in excess of 8 per day and 30 per week.
B)Hours worked in excess of 40 per week.
C)Hours worked in excess of 9 per day or 35 per week.
D)Hours worked in excess of employer-determined rules.

Accepted Answer

The Fair Labor Standards Act requires nonexempt workers to receive overtime pay for hours worked in excess of 40 per week.

Question 18

IRS Regulation 26 CFR 1.6001 mandates ________ procedures as they pertain to payroll records,noting that it is the responsibility of the ________.
A)file maintenance;employer
B)payroll review;payroll supervisor
C)check authorization;controller
D)employee time review;department manager

Accepted Answer

IRS Regulation 26 CFR 1.6001 specifically mandates file maintenance procedures for payroll records and places responsibility on the employer to ensure compliance with these procedures. Choices B, C, and D do not accurately reflect the requirements of this regulation.

Quiz 2: Payroll System Procedures

Leased employees must have the following characteristics: (You may select more than one answer. )

What is the difference in pay practices between salaried exempt and salaried nonexempt workers?

The IRS stipulates that no more than ________ percent of a company's employees may be leased employees.

A employee is eligible for company benefits whereas a employee is not.

Upon termination from a firm,the employer must disburse the former employee's final pay ________.

Which of the following is an example of a typical exempt salaried employee?

FATCA enforcement has been difficult because the Internal Revenue Service relies on ________ for reporting purposes.

Personnel in certain full-time occupations are classified as ________ instead of independent contractors.

Jeremiah is a salaried exempt worker whose standard workday consists of eight-hour shifts.During a workweek,he exceeded eight hours of work on two separate days but did not exceed 40 hours during the work week.What is the FLSA provision for the time that he worked past eight hours in a single day?

payroll is processed every two weeks and will usually result in a lower gross pay per pay period than payroll.

Verification of hours worked and pay accuracy is part of the ________.

Individuals classified as ________ are processed as vendors of a firm.

Adrienne is a nonexempt employee who works for a firm that has an elected workweek composed of four 10-hour days and pays overtime after 40 hours worked per week.What is the rule about overtime for her work situation?

Payroll records that contain evidence of fraud or other illegal action must be ________.

pay is based on sales revenue,while pay is based on production of good or service.

Form I-9 is issued by the ________ to verify employment eligibility in the United States.

According to the Fair Labor Standards Act,nonexempt workers receive overtime for:

IRS Regulation 26 CFR 1.6001 mandates procedures as they pertain to payroll records,noting that it is the responsibility of the .