CPN Regulatory Compliance & Legal Framework 2

Question 1

Under the Fair Labor Standards Act (FLSA), a nanny who works more than 40 hours in a single workweek must receive overtime pay at what rate?

Accepted Answer

1.5 times the regular rate

Answer

The FLSA requires that household employees working over 40 hours per week be paid at least 1.5 times their regular hourly rate for overtime hours.

Question 2

A family pays their nanny $700 per week in cash and does not withhold taxes. What is the family legally required to do if wages exceed the annual household employee threshold?

Accepted Answer

File a Schedule H and pay employer payroll taxes

Answer

Families must file Schedule H with their federal tax return and pay Social Security, Medicare, and potentially unemployment taxes once wages exceed the IRS threshold.

Question 3

Which federal form must an employer complete within three days of a nanny's first day of work to verify eligibility to work in the United States?

Accepted Answer

I-9

Answer

The I-9 Employment Eligibility Verification form must be completed within three business days of the employee's start date to confirm legal work authorization.

Question 4

A nanny discovers that the family has misclassified her as an independent contractor instead of an employee. What is the primary legal consequence for the family?

Accepted Answer

The family owes back payroll taxes, penalties, and interest

Answer

Misclassifying an employee as an independent contractor can result in the family owing back payroll taxes, significant IRS penalties, and accrued interest.

Question 5

Which state-level law requires employers, including household employers in most states, to provide paid or unpaid leave for employees who need to care for a sick family member?

Accepted Answer

State paid family leave or FMLA, depending on employer size

Answer

FMLA applies to employers with 50+ employees, so most household employers are exempt federally, but many states have their own paid family leave laws that cover smaller employers.

(CPN) Certified Professional Nanny Practice Test

(CPN) Certified Professional Nanny Practice Test

CPN Regulatory Compliance & Legal Framework 2