Pre-Assessment Flashcards
Internal payroll reports are used to inform a firm’s managers and decision-makers about labor costs.
T/F
True
The Lilly Ledbetter Act of 2009 removed the 180-day statute of limitations for claims of unequal treatment among workers who perform identical tasks.
T/F
True
The Equal Pay Act of 1963 was the first legislation that addressed pay equity.
The Sarbanes-Oxley Act legislated penalties for violations of which Act?
Multiple Choice
- DOMA
- PRWOR
- HIPAA
- ERISA
ERISA
The U.S. v. Windsor case repealed an Act and affected payroll tax withholdings for certain employees. Which Act did Windsor repeal?
Multiple Choice
- ARRA
- ATRA
- DOMA
- OSHA
DOMA
The two focuses of payroll procedures are company needs and governmental rules.
T/F
True
Employers may choose to omit the employees’ Social Security numbers in their employee files.
T/F
False
Social Security numbers must be included in all employee files.
Which of the following items must exist in every employee’s payroll file?
Multiple Choice
- Employment history
- Spouse’s social security number
- Occupation
- Spouse’s birth date
Occupation
Which of the following is subject to overtime in the process of hourly computations, according to FLSA?
Multiple Choice
- Nonexempt employee weekend work
- Time worked in excess of eight hours per day
- Time worked in excess of 40 hours per week
- Holiday, sick time, and paid time off
Time worked in excess of 40 hours per week
The tipped minimum wage is $2.13 per hour for all states.
False
The tipped minimum wage varies among states.
To compute the hourly rate for an employee with a 40-hour standard workweek, you would divide the annual salary by 2,080.
T/F
True
The minimum wage for salaried employees is:
Multiple Choice
- $523/week.
- $684/week.
- $596/week.
- $455/week.
$684/week.
Clark is a piece rate worker who earns $8.25 per completed unit. During a 40-hour workweek, Clark completed 57 units. What is Clark’s hourly rate?
Multiple Choice
- $11.76 per hour
- $12.22 per hour
- $13.98 per hour
- $15.21 per hour
$11.76 per hour
Alex is a salesperson who receives an annual salary of $18,000 paid semimonthly plus commissions of 5% of the retail price of each unit he sells which is paid on the final pay date of the month. During his first month of employment, he sold four units for a total of $1,000 and requested a 5% draw against his $15,000 monthly minimum sales, in accordance with his employment agreement. How much should Alex receive in his gross pay for the end of his first month?
Multiple Choice
- $1,250.00
- $800.00
- $1,550.00
- $1,750.00
$1,550.00
Name: Alex Hourly Rate or Period wage: $750.00 Draw: $750.00 Commissions: $50.00 Gross Earning: $1,550.00
Fringe benefits and employee satisfaction have no correlation.
T/F
False
Companies that offer fringe benefits have higher levels of employee satisfaction.
All employee contributions to qualified Premium-Only Plans (POP) and Flexible Spending Arrangements (FSA) are deducted on a pre-tax basis.
T/F
False
FSAs contributions are limited to $2,700 per calendar year.
According to Publication 15-b, what is the annual cash value limit for excluded qualified achievement awards?
Multiple Choice
- $800
- $2,000
- $1,400
- $1,600
$1,600
The primary difference between pre-tax and post-tax deductions is:
Multiple Choice
- Post-tax deductions reduce gross pay.
- Pre-tax deductions include child support.
- Pre-tax deductions reduce tax liability.
- Post-tax deductions reduce tax obligations.
Pre-tax deductions reduce tax liability.
Under the ________, benefits offered only during the last two months of the calendar year may be treated as paid during the following calendar year.
Multiple Choice
- Special accounting rule
- Benefits valuation rule
- IRS Publication 15
- ERISA
Special accounting rule
Federal income tax, Medicare tax, and Social Security tax amounts withheld from employee pay are computed based on gross pay, less pre-tax deductions, and deducted to arrive at net pay.
T/F
True
A firm has headquarters in Indiana but has offices in California and Utah. For employee taxation purposes, it may choose which of those three states income tax laws it wishes to use.
T/F
False
The employer must pay employee taxes based on each employee’s permanent residence.
Paolo is a part-time security guard for a local facility. He earned $298.50 during the most recent weekly pay period and has earned $5,296.00 year-to-date. He is married filing jointly and claims dependents on his 2020 Form W-4. What is his Medicare tax liability for the pay period?
Multiple Choice
- $10.54
- $8.65
- $43.23
- $4.33
$4.33
Period wage/Salary: $ 298.50 Prior year-to-date earning: $ 5,296.00 Taxable amount: $ 298.50 Medicare tax rate: 1.45% Medicare tax: $ 4.33
Mandatory employer-paid payroll taxes are known as statutory deductions.
T/F
True
A firm’s frequency of payroll tax deposits is determined by its payroll tax liability during the lookback period.
True
Dena’s Decorations is a South Carolina business that has a SUTA rate of 3.6% and an annual SUTA wage base of $14,000. The employee earnings for the past calendar year are: B. Gilfilan $22,180, P. Laubach $37,690, S. Loftin $15,320, M. Moravec $9,840. (Assume that all employees have exceeded the annual FUTA wage base of $7,000 per employee and that the FUTA rate is 0.6%.)
What are the FUTA and SUTA tax liabilities for Dena’s Decorations?
Multiple Choice
- FUTA $531.36; SUTA $2,102.58
- FUTA $1,686.20; SUTA $531.36
- FUTA $168; SUTA $1,866.24
- FUTA $1,686.20; SUTA $168
FUTA $168; SUTA $1,866.24
