Module 1

Question 1

What provisions are a part of the fair labor standards act?

Answer 1

Overtime provisions, classification of exempt or non exempt employees, child labor laws.

Question 2

What is an independent contractor (1099)?

Question 3

Both federal and state governments regulate what?

Answer 3

Child labor

Question 4

What are the minimum wage requirements?

Answer 4

Employees must pay $7.25 per hour

Question 5

Under the FLSA, which types of pay are included in the calculation of the regular rate of pay?

Answer 5

All pay for hours worked must be included in the regular rate of pay calculation. FLSA excludes paid time off.

Question 6

When is the earliest date an employee can amend Form W-4?

Answer 6

On the day the change happens. Employees cannot submit an amended Form W-4 in anticipation of a change.

Question 7

When can an employee file an exempt Form W-4?

Answer 7

When they had no tax liability last year and expect to have no tax liability this year.

Question 8

What is a discretionary bonus?

Answer 8

Under FLSA, a bonus is considered a discretionary bonus when the employer retains the discretion to pay and determine the amount of bonus.

Question 9

What is the default criteria for federal income tax when an employee does not complete a Form W-4?

Answer 9

Singled or married filling separately with no entries in step 2-4.

Question 10

What is needed to complete Form w-4?

Answer 10

A signature and date

Question 11

When is a nonexempt employee paid overtime?

Answer 11

Under FLSA, nonexempt employee must be paid overtime for all hours physically worked over 40 hours in a work week regardless of pay frequency.

Question 12

What is a nondiscretionary bonus?

Answer 12

A nondiscretionary bonus is a contractual bonus paid based on the employee’s production, efficiency, or other measure of performance.

Question 13

By claiming tip credit, what is the minimum hourly cash wage employers can pay employees who report at least $30 per month in tips?

Answer 13

$2.13

Question 14

What classifies a worker as an employee?

Answer 14

A company has the right to control an employee

Question 15

What is the 8/80 rule?

Answer 15

Hospital employees who work over 8 hours a day or 80 hours in a workweek (whichever is greater) must be paid overtime

Question 16

When must an employee file a new Form W-4 once a spouse dies?

Answer 16

When an employees spouse dies during the current year, the employee must file a new form w-4 before the first pay period of the following year.

Question 17

How many hours per day can a 15 year old employee work when school is in session?

Answer 17

During school, 15 year old can work 3 hours per day/18 per week.

Question 18

How many hours per day can a 15 year old employee work when school is in session?

Answer 18

During school, 15 year old can work 3 hours per day/18 per week.

Question 19

After an employee files an amended W-4, when must the change be reflected?

Answer 19

The first pay period on or after 30 days from the date the amended w4 was received.

Question 20

Under FLSA, does a teacher meeting the professional employee exemption get paid overtime?

Answer 20

No. A professional teacher who’s primary duty is teaching, tutoring, instructing, or lecturing students is an exempt employee.

Question 21

How can a taxpayers identification number and name reported on form 1099-NEC be checked?

Answer 21

IRS’s TIN Matching System

Question 22

If the federal min wage is $7.25 and the state min wage is $8, what is the minimum amount an employer must pay nonexempt employees?

Answer 22

$8. Employers are required to pay the greater of the federal or state minimum wage in the state the employee works

Question 23

If an employee is a full-time student and is claimed as a dependent by the employees’ parents, what conditions must exist for the employee to claim exempt?

Answer 23

Total income can’t be more than $1,300, including unearned income of not less than $450

Question 24

How long does a Form W-4 nit claiming exempt remain valid?

Answer 24

Until the employee submitted a new form

Question 25

What is form SS-5 used for?

Answer 25

To obtain a new social security card or have a card reissued.