Compliance and Legal Requirements Flashcards

Which agency enforces the Employee Retirement Income Security Act (ERISA) for fiduciary violations in private-sector pension plans?

Answer: Department of Labor Employee Benefits Security Administration (EBSA)

The DOL's Employee Benefits Security Administration (EBSA) investigates and enforces ERISA fiduciary responsibility and reporting requirements.

Under the Fair Labor Standards Act, what records must employers keep for non-exempt employees regarding hours worked?

Answer: Time in and time out for each workday and total hours worked each workweek

FLSA regulations require employers to keep records of the time and day the workweek begins, hours worked each day, and total hours each workweek for non-exempt employees.

Under the Affordable Care Act employer mandate, what is the threshold for being considered an Applicable Large Employer (ALE)?

Answer: 50 or more full-time equivalent employees

An ALE is defined as an employer with 50 or more full-time employees (including full-time equivalents) during the preceding calendar year.

When must an employer furnish Form W-2 to employees under IRS regulations?

Answer: By January 31 of the following year

Employers must furnish Form W-2 to employees on or before January 31 of the year following the calendar year of wages.

Which law requires employers with federal contracts of $10,000 or more to take affirmative action to employ and advance qualified individuals with disabilities?

Answer: Rehabilitation Act Section 503

Section 503 of the Rehabilitation Act requires federal contractors and subcontractors with contracts over $10,000 to take affirmative action for individuals with disabilities.

Under IRS regulations, if an employer fails to file correct information returns (e.g., W-2s) by the due date, what is the per-form penalty for large businesses when the failure is not corrected within 30 days?

Answer: $330 per return

For large businesses, the penalty for W-2/1099 failures not corrected within 30 days is $330 per return (as adjusted for inflation in recent years).

An employee claims they are an independent contractor to avoid payroll tax withholding. Under the IRS common law test, which factor most strongly indicates an employer-employee relationship?

Answer: The company controls not just the result of the work but also how and when it is done

Under the IRS common law test, the key indicator of an employment relationship is behavioral control — the right to control how, when, and where the worker performs services.