ASA Compensation, Benefits & Payroll Management

Question 1

Under the Fair Labor Standards Act (FLSA), what is the standard overtime threshold requiring time-and-a-half pay for non-exempt employees?

Accepted Answer

More than 40 hours per week

Answer

The FLSA requires overtime pay at 1.5x the regular rate for all hours worked beyond 40 in a workweek for non-exempt employees.

Question 2

Which IRS form must staffing agencies use to report wages paid to temporary employees?

Accepted Answer

Form W-2

Answer

Temporary employees on the staffing agency's payroll are W-2 employees, so agencies must issue Form W-2 to report their wages.

Question 3

What term describes the markup rate a staffing agency adds to the worker's pay rate when billing a client?

Accepted Answer

Bill rate multiplier

Answer

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.

Question 4

Which component of a temporary employee's total cost package covers employer-paid Social Security and Medicare taxes?

Accepted Answer

FICA taxes

Answer

FICA (Federal Insurance Contributions Act) taxes cover the employer's share of Social Security (6.2%) and Medicare (1.45%) for each employee.

Question 5

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?

Accepted Answer

30 hours per week

Answer

The ACA defines full-time employees as those working 30 or more hours per week, triggering the employer mandate for ALEs.

(ASA) American Staffing Association Certifications Practice Test

(ASA) American Staffing Association Certifications Practice Test

ASA Compensation, Benefits & Payroll Management