FAC Payroll Processing & Administration 3

Question 1

An employee works 48 hours in a workweek at $20/hr. What is their total gross pay under FLSA?

Accepted Answer

$1,060.00

Answer

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?

Accepted Answer

Department of Labor (DOL)

Answer

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?

Accepted Answer

6.2%

Answer

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?

Accepted Answer

Form W-4

Answer

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?

Accepted Answer

$200.00

Answer

25% × $800 disposable earnings = $200 withheld, subject to CCPA limits on garnishment.

(FAC) Finance and Accounting Certification Practice Test