FREE Fundamental Payroll Certification Question and Answers
How are taxes withheld when supplemental wages are paid concurrently with regular wages?
Explanation:
Taxes are deducted from the combined amount when supplemental payments are paid in a lump sum along with regular wages, just like a single wage payment would be. 22% of the extra pay may be withheld if they are specified individually. The supplemental wages are viewed as a regular wage payment and taxes are withheld as though the payment were a regular wage payment if they are made separately from the normal payroll. Bonuses, commissions, overtime compensation, paid sick days, severance money, back pay, and reimbursements for moving expenses are all examples of supplemental income.
An individual would be regarded as an employee of the staffing company and the agency's client to which he is allocated when it comes to evaluating legal obligations regarding workplace discrimination.
Explanation:
The staffing company is a provider of temporary employment: A firm, an agency, and an individual may agree to a variety of contingent work arrangements. The person would typically be regarded as an independent contractor. The person is actually regarded as an employee of the agency in temporary employment agencies. In this scenario, the corporation (the agency's client) controls the working conditions while the agency hires and pays the individual. In addition to paying the person, the agency also charges the client company a fee. Due to the fact that both the agency and the corporation have power over how well the worker does their job, they are both considered employers of the person. The organization hires staff, assigns tasks, covers workers' compensation, and pays salaries. The employer supervises the employee and supplies the workspace and tools.
Which aspect affects whether an employee contributes to Social Security and Medicare?
Explanation:
The only two programs that are supported by the law known as FICA are Social Security and Medicare. Consequently, Social Security and Medicare taxes are owed on income that is taxable under FICA regulations. This requirement has no age restriction. Even while the majority of that employment would in fact also pay into Social Security and Medicare, whether the labor is constituted employment for the purposes of federal income tax withholding laws is not a necessity for paying these taxes. Last but not least, though nonprofits do not have to pay income taxes, they are nevertheless required to deduct Social Security and Medicare taxes from their own employees' wages.
Which regulation may lead to the ownership of unpaid wages when an employer records an employee's start and stop timings using rounding practices?
Explanation:
A seven-minute limit. The start and stop times of employees are frequently rounded up to the next five minutes by employers. In order to fully compensate the employee for work, the computation delivers the average number of hours performed. The employer rounds up at six minutes and rounds down at five minutes in accordance with the five-minute rule. Time is rounded up to seven minutes under the six-minute rule, favoring the employee. The time is rounded up to eight minutes in accordance with the seven-minute rule. Employees who routinely put in a few more minutes at the end of each shift won't get paid correctly for the time they put in.
Which of the following factors does the IRS take into account when deciding whether a person should be correctly classified as an independent contractor?
Explanation:
Whether the person has control over the process of doing the work. The degree of control a person has over the means—rather than the end—of employment is one of the key factors the IRS takes into account when deciding whether or not to classify someone as an independent contractor. A person is correctly categorized as a contractor if a business pays them to develop software but gives them no direction. It is irrelevant if the contractor has a current business license. Although a corporation shouldn't pay a contractor's taxes, that doesn't necessarily mean that person is a contractor; he could still be misclassified.
What class of worker is not covered by the Fair Labor Standards Act (FLSA)?
Explanation:
The Fair Labor Standard Act's overtime regulations may not apply to all jobs (FLSA). Jobs that are expressly excluded from coverage by the statute or that fall under the purview of another federal labor law are not covered. Those who work in movie theaters and in agriculture are not covered by the law. Railroad employees are covered by the Railway Labor Act, and truck drivers are covered by the Motor Carriers Act. These occupations are also covered by additional federal labor laws.
How many hours a 14- to 15-year-old may work each week while school is in session?
Explanation:
According to the minor's age, different child labor rules are implemented. There are restrictions on the total amount of hours minors can work in a day or week, as well as the hours of the day they can work. Anyone under the age of 16 is permitted to work in non-manufacturing, non-agricultural, non-mining, or non-hazardous employment outside of school hours. For those who are 14 and 15, the restriction is as follows:
> No more than 3 hours per day during school hours
> No more than 18 hours per week during school hours
> No more than 8 hours per day during non-school hours
> No more than 40 hours per week while school is not in session