Compensation, Benefits & Payroll Management Flashcards
7 cards from real ASA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Compensation, Benefits & Payroll Management flashcards as text
Under the Fair Labor Standards Act (FLSA), what is the standard overtime threshold requiring time-and-a-half pay for non-exempt employees?
Answer: More than 40 hours per week
The FLSA requires overtime pay at 1.5x the regular rate for all hours worked beyond 40 in a workweek for non-exempt employees.
Which IRS form must staffing agencies use to report wages paid to temporary employees?
Answer: Form W-2
Temporary employees on the staffing agency's payroll are W-2 employees, so agencies must issue Form W-2 to report their wages.
What term describes the markup rate a staffing agency adds to the worker's pay rate when billing a client?
Answer: Bill rate multiplier
The bill rate multiplier (or bill rate) is the markup applied to the pay rate to cover employer costs and profit when invoicing the client.
Which component of a temporary employee's total cost package covers employer-paid Social Security and Medicare taxes?
Answer: FICA taxes
FICA (Federal Insurance Contributions Act) taxes cover the employer's share of Social Security (6.2%) and Medicare (1.45%) for each employee.
Under the Affordable Care Act, staffing agencies that qualify as Applicable Large Employers (ALEs) must offer health coverage to employees working at least how many hours per week?
Answer: 30 hours per week
The ACA defines full-time employees as those working 30 or more hours per week, triggering the employer mandate for ALEs.
What is the purpose of a co-employment arrangement in the staffing industry?
Answer: To share employer responsibilities between the staffing agency and the client company
Co-employment means the staffing agency and client company each hold certain employer obligations — typically the agency handles payroll/benefits while the client supervises work.
Which federal payroll tax funds unemployment benefits at the federal level and is paid solely by the employer?
Answer: FUTA
FUTA (Federal Unemployment Tax Act) is an employer-only tax that funds federal unemployment administration and provides a safety net above state programs.