Fundamental Payroll Certification Fundamental Payroll Certification 5

Question 1

A tipped employee in a restaurant earns $2.13/hour in direct wages. Their tips bring total compensation to $9.00/hour. Under FLSA, this arrangement is:

Accepted Answer

Legal — provided tips bring total earnings to at least the federal minimum wage

Answer

The FLSA tip credit permits employers to pay tipped employees as little as $2.13/hour if tips bridge the gap to the $7.25 federal minimum wage.

Question 2

Which of the following correctly describes the FLSA child labor restrictions for minors aged 14–15?

Accepted Answer

Limited to 3 hours on school days and 18 hours in school weeks

Answer

FLSA limits 14- and 15-year-olds to 3 hours on school days, 18 hours during school weeks, 8 hours on non-school days, and 40 hours on non-school weeks.

Question 3

Under IRS rules, supplemental wages paid separately from regular wages (e.g., a standalone bonus check) are subject to a flat federal withholding rate of:

Accepted Answer

22%

Answer

The IRS optional flat rate for supplemental wages paid separately is 22% (for amounts under $1 million) for federal income tax withholding.

Question 4

The FLSA definition of 'hours worked' generally includes:

Accepted Answer

Short rest breaks of 5 to 20 minutes

Answer

Under FLSA, short rest breaks (roughly 5–20 minutes) benefit the employer and must be counted as hours worked and compensated.

Question 5

Which of the following best defines 'constructive receipt' in payroll?

Accepted Answer

Income is taxable when it is made available to the employee, even if not yet received

Answer

Constructive receipt means income is taxable in the year it is credited to the employee's account or made available without restriction.

Fundamental Payroll Certification Practice Test

Fundamental Payroll Certification Practice Test

Fundamental Payroll Certification Fundamental Payroll Certification 5