Regulatory Compliance & Standards Flashcards
7 cards from real CPS practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Regulatory Compliance & Standards flashcards as text
Under the FLSA, a tipped employee must retain all tips except for valid tip pool contributions. A mandatory tip pool is only permissible among employees who:
Answer: Customarily and regularly receive tips, excluding managers and supervisors
Under the FLSA tip credit rules, mandatory tip pools must be limited to employees who customarily and regularly receive tips; managers and supervisors are excluded.
Which payroll record retention requirement applies to basic employment and earnings records under the FLSA?
Answer: 2 years for payroll records and 3 years for basic employment records
The FLSA requires employers to retain basic employment records for 3 years and supplementary payroll records (time cards, wage rate tables) for 2 years.
What is the penalty per return for intentional disregard of the requirement to file correct W-2 information returns, per the IRS?
Answer: $570 per return
For intentional disregard of W-2 filing requirements, the IRS penalty is $570 per return (indexed for inflation) with no annual maximum cap.
Under IRC Section 3121(b), which workers are excluded from FICA coverage as a statutory non-employee category?
Answer: Qualified real estate agents and direct sellers meeting specific criteria
IRC Section 3508 (cross-referenced in FICA rules) classifies qualified real estate agents and direct sellers as statutory non-employees exempt from FICA if they meet statutory criteria.
An employee's Form W-4 is invalid if it lacks which of the following?
Answer: The employee's signature
A W-4 must be signed by the employee to be valid; without a signature the employer must withhold as if the employee were single with no adjustments.
Under the Family and Medical Leave Act (FMLA), what is the minimum size of employer covered by the act?
Answer: 50 or more employees
The FMLA applies to employers with 50 or more employees within 75 miles of the worksite for at least 20 workweeks in the current or preceding calendar year.
Which of the following fringe benefits is specifically excluded from an employee's gross income under IRC Section 132 as a 'working condition fringe benefit'?
Answer: A professional journal subscription required for the employee's job
A working condition fringe benefit under IRC Section 132(d) excludes from income property or services the employee could deduct if they paid for it themselves, such as job-required subscriptions.