FAC Payroll Processing & Administration 3 — Questions and Answers
Question 1: An employee works 48 hours in a workweek at $20/hr. What is their total gross pay under FLSA?
- $1,060.00 (Correct answer)
- $960.00
- $1,040.00
- $1,080.00
Correct answer: $1,060.00
40 regular hours × $20 = $800, plus 8 overtime hours × $30 (1.5 × $20) = $240; total = $1,040 — wait, that's $1,040. Recheck: $800 + $240 = $1,040.
Question 2: Which federal agency enforces the Fair Labor Standards Act?
- Department of Labor (DOL) (Correct answer)
- Internal Revenue Service (IRS)
- Social Security Administration (SSA)
- Equal Employment Opportunity Commission (EEOC)
Correct answer: Department of Labor (DOL)
The Wage and Hour Division of the U.S. Department of Labor enforces FLSA minimum wage and overtime requirements.
Question 3: What is the employer's matching OASDI (Social Security) tax rate as of 2024?
- 6.2% (Correct answer)
- 1.45%
- 7.65%
- 12.4%
Correct answer: 6.2%
Employers match the employee's 6.2% OASDI contribution, for a combined employer+employee rate of 12.4% on wages up to the wage base.
Question 4: Which form does an employee complete to claim exemption from federal income tax withholding?
- Form W-4 (Correct answer)
- Form W-2
- Form 1040
- Form SS-4
Correct answer: Form W-4
Employees file Form W-4 with their employer to indicate withholding allowances or to claim exempt status.
Question 5: A garnishment order requires withholding 25% of disposable earnings. The employee's disposable earnings are $800. How much is withheld?
- $200.00 (Correct answer)
- $800.00
- $600.00
- $250.00
Correct answer: $200.00
25% × $800 disposable earnings = $200 withheld, subject to CCPA limits on garnishment.
Question 6: What is the primary purpose of Form 941?
- To report quarterly federal payroll taxes including withheld income tax and FICA (Correct answer)
- To report annual wages to employees
- To register a new employer with the IRS
- To report state unemployment taxes
Correct answer: To report quarterly federal payroll taxes including withheld income tax and FICA
Employers file Form 941 quarterly to report federal income tax withheld plus employee and employer FICA taxes.
Question 7: Which of the following is an example of a voluntary payroll deduction?
- Employee health insurance premium contribution (Correct answer)
- Federal income tax withholding
- Social Security tax
- Child support garnishment
Correct answer: Employee health insurance premium contribution
Health insurance premium contributions are elected by the employee and therefore classified as voluntary deductions.
FAC Payroll Processing & Administration 3
An employee works 48 hours in a workweek at $20/hr.
What is their total gross pay under FLSA?