Chap 3 Terms

Question 1

Combination Pay

Answer 1

employee compensation that reflects two or more discrete pay bases durning the same pay period.

Question 2

Commission

Answer 2

employee compensation paid upon complete of a task, often pertaining to sales-based activities.

Question 3

Compensatory (Comp) Time

Answer 3

paid time off granted to employee instead of paid overtime

Question 4

Draw

Answer 4

a loan against future earnings that employees will repay from commissions

Question 5

8 and 80

Answer 5

a two-week, 80-hour pay period used to determine overtime for employees who works for hospitals and emergency providers

Question 6

Exempt

Answer 6

an employee who is not subject to the overtime provisions of the FLSA (fair labor standards act)

Question 7

Gross Pay

Answer 7

the amount of wages paid to an employee based now on performed, prior to any deductions for mandatory or voluntary deductions

Question 8

Hourly

Answer 8

wage determination based on the number of compete and partial hours during which an employee perform works-related tasks.

Question 9

Hundredth-hour System

Answer 9

the division of an hour into 100 increments used to compute employee wages as accurately as possible.

Question 10

ISO

Answer 10

Incentive Stock Options

- a type of employee compensation in which the employee receives a firm’s stock on tax-advantaged basis.

Question 11

Minimim Wage

Answer 11

the minimum hourly amount that employers may legally pay to employees.

Question 12

Net Pay

Answer 12

an employee’s wages or salary less all mandatory and voluntary deductions

Question 13

Nonexempt

Answer 13

an employee who is subject to all overtime provisions of the FLSA; generally, an hourly employee

Question 14

On-Call Time

Answer 14

the non-work time that an employee is expected to be available for workplace-related emergencies

Question 15

Overtime

Answer 15

time that an employee works beyond his or her normal working hours.

Question 16

Payroll Register

Answer 16

a payroll register is the payroll accountant’s internal tool that helps ensure accuracy of employee compensation.

Question 17

Piece Rate

Answer 17

employee compensation based on the production of unit or completion of an action during a specified time period.

Question 18

Prove

Answer 18

ensuring that the sum of the rows of the payroll register equals the sum of the columns.

Question 19

Rule

Answer 19

the accounting practice in which the final totals of financial reports are double-underlined

Question 20

Salary

Answer 20

a fixed amount paid to an employee on a regular basis, often expressed in annual terms

Question 21

Sleep Time

Answer 21

employees who are required to be on duty for 24 hours or more may be allowed up to 5 hours of sleep without a reduction in pay.

Question 22

Time Card

Answer 22

a record of the time worked during a period for an individual employee.

Question 23

Tip Credit

Answer 23

allow an employer to credit a portion of an employee’s tips toward the employer’s obligation to pay minimum wage

Question 24

Tipped Employee

Answer 24

an employee who engages in an occupation in which he or she customarily and regularly receives more than $30 per month in tips.

Question 25

Tipped Wages

Answer 25

the base wage paid to employees who earn the majority of their income through customer tips

Question 26

Total

Answer 26

computing the sum of each row and each column of the payroll register

Question 27

Travel Time

Answer 27

time that en employee spends traveling for the employer’s benefit.

Question 28

Wait Time

Answer 28

the time that en employee is paid to wait on the employer’s premises for the benefit of the employer.