Chapter 2

Question 1

Pay Period

Answer 1

Any period the employer wishes to calculate an employees Payable time for. Must remain consistent.

Question 2

Period Types

Answer 2

Weekly Biweekly Semimonthly Monthly

Question 3

Work Week

Answer 3

Any consecutive 7 day period. Must remain consistent.

Question 4

Pay check lag

Answer 4

Most employers are one period behind in pay.

Question 5

Equal Pay Act of 1963 (EPA)

Answer 5

No employer may discriminate against any employee by paying a lower wage than is paid to an employee of the other gender for a similar job.

Question 6

Wage Disparities are corrected to the

Answer 6

Higher wage

Question 7

Allowable Disparities

Answer 7

Seniority Merits Production Value (quantity/quality) non gender based differentials

Question 8

Minimum Wages

Answer 8

Municipality, State, and Federal- Employee must be paid the highest minimum wage available in their area, and never lower than Federal.

Question 9

Time Cards

Answer 9

Track Employee time

Question 10

Time Card Rounding

Answer 10

Can round to the nearest 15 minute increment, so long as the minutes are consecutive.

Question 11

Alternative Timekeeping Methods

Answer 11

Badges Biometrics CTI

Question 12

Wage

Answer 12

Amount paid for: Time worked or units produced

Question 13

Salary

Answer 13

Contractual pay regardless of time/productivity.

Question 14

Gross Wages

Answer 14

Pre-deduction/addition wages (base rate before tax)

Question 15

Overtime Pay

Answer 15

minimum 1.5x Regular rate

Question 16

Weekly Wage Conversions

Answer 16

(((weekly rate/40)1.5)OT Hours)+Weekly Base

Question 17

Salary to Hourly

Answer 17

((Salary/52)/40)

Question 18

Commissions

Answer 18

% of sales

Question 19

Bonuses

Answer 19

Additional Amounts

Question 20

Incentive plans

Answer 20

differentials and offerings for productivity/tenure

Question 21

Additional

Answer 21

Pay based on performance Profit Sharing Stock Options Addl. Vacation Days Sabbaticals

Question 22

Overtime on Commission

Answer 22

(Regular Rate* hours)= Base Rate (base rate + Commision amount)=Regular Wages Regular Wage/ hours worked = combined hourly wage rate

Question 23

Discretionary Bonus

Answer 23

unplanned, no contingencies (holiday bonus)

Question 24

Non-discretionary bonus

Answer 24

Planned Bonuses with contingencies (tenure, performance)

Question 25

Self Employment Income

Answer 25

Sole Proprietorships, Partnerships, Freelance not beholden to Minimum wage or OT must track total income for taxes income = revenue- expenses

Question 26

Tipped Employees

Answer 26

Employees who earn $30+/ mo in tips Employers beholden to min tip wage and OT Employers can apply tip credit Employers can only use employee tips for wages owed or a tip pool.

Question 27

Tip Pool

Answer 27

All tips added together and divided among employees. Only tipped employees.

Question 28

Tipped+ Wage

Answer 28

tips+wage?min wage employer must pay the difference

Question 29

Tip Credit

Answer 29

if employees make over $5.12/ hour in tips, the employer can claim a tip credit and just pay the minimum wage of 2.13. If emplyees make more than that, the employer must reduce the credit in order to stay under the 5.12 threshold if employees make less than that, the employer must pay the difference up to minimum wage.

Question 30

Tipped OT

Answer 30

Hourly* Regular hours= Regular earnings min wage- regular rate= hourly tip credit (min wage * OT Factor)- tip credit= OT hourly rate OT Hourly * OT hours= OT earning hours worked * Hourly Tip Credit= Total Tip credit Regular earnings + OT earnings+ tips= Total earnings

Question 31

Piecework systems

Answer 31

Pay based on output/quotas Beholden to minimum Wage & OT

Question 32

Piecework OT

Answer 32

Unit rate * unit output = regular earnings for all hours regular earnings/ hours worked= regular hourly rate Regular Hourly * OT Factor= OT Rate OT rate 8 OT Hours= OT earnings Regular + OT= total

Question 33

Payroll Register

Answer 33

Shows each Employee’s Pay for a single period