Fundamental Payroll Certification Fundamental Payroll Worker Status and FLSA 5 — Questions and Answers
Question 1: Under the FLSA, an employer's 'workweek' is defined as:
- Monday through Friday only
- Any fixed, regularly recurring period of 168 consecutive hours (Correct answer)
- The period from the first paycheck to the next
- A calendar month divided by four
Correct answer: Any fixed, regularly recurring period of 168 consecutive hours
The FLSA workweek is any fixed, regularly recurring 168-hour (7-day) period established by the employer, which may begin on any day.
Question 2: A non-exempt employee earns $15/hour and a production bonus of $150 in a week when they work 50 hours. What is the correct regular rate of pay for overtime calculation?
- $15.00/hour
- $17.00/hour
- $17.50/hour
- $18.00/hour (Correct answer)
Correct answer: $18.00/hour
Regular rate = ($15 × 50 + $150) / 50 = $900 / 50 = $18.00/hour; non-discretionary bonuses are included in the total compensation before dividing by total hours.
Question 3: Which of the following actions by an employer constitutes FLSA retaliation?
- Scheduling a non-exempt employee for fewer hours after a busy season ends
- Terminating an employee who filed a complaint about unpaid overtime (Correct answer)
- Requiring time cards to be submitted by the end of each shift
- Moving a salaried employee to hourly pay for administrative convenience
Correct answer: Terminating an employee who filed a complaint about unpaid overtime
The FLSA prohibits employers from discharging or discriminating against any employee for filing a complaint or participating in a proceeding under the Act.
Question 4: Under the FLSA's computer employee exemption, which wage basis qualifies the worker for the overtime exemption?
- At least $455 per week salary
- At least $684 per week salary OR $27.63 per hour (Correct answer)
- At least $100,000 per year
- At least $15.00 per hour
Correct answer: At least $684 per week salary OR $27.63 per hour
Computer professionals may be exempt if paid at least $684/week on a salary or fee basis, or at least $27.63/hour, provided they meet the duties test.
Question 5: Which IRS form is used to report the wages paid and taxes withheld for common law employees on an annual basis?
- Form 1099-NEC
- Form W-2 (Correct answer)
- Form 1099-MISC
- Form W-9
Correct answer: Form W-2
Employers report annual wages, tips, and withheld taxes for employees on Form W-2, which must be provided to employees and filed with the SSA.
Question 6: An employer pays all employees a flat daily rate regardless of hours worked. For overtime compliance under the FLSA, the regular rate is computed as:
- The daily rate divided by 8 hours
- The total daily earnings divided by all hours actually worked that day (Correct answer)
- The daily rate multiplied by 5, divided by 40
- Half the daily rate for any day with over 8 hours
Correct answer: The total daily earnings divided by all hours actually worked that day
When workers are paid a flat daily rate, the regular rate for any workday is the daily earnings divided by the actual number of hours worked that day.
Question 7: Under the FLSA, which of the following payments is EXCLUDED from the regular rate of pay used to calculate overtime?
- Shift differential pay
- Non-discretionary production bonuses
- Discretionary holiday bonuses announced at year-end (Correct answer)
- Commission payments earned during the workweek
Correct answer: Discretionary holiday bonuses announced at year-end
Discretionary bonuses — those not promised in advance and not based on a predetermined formula — are excluded from the regular rate of pay.
Fundamental Payroll Certification Fundamental Payroll Worker Status and FLSA 5
Under the FLSA, an employer's 'workweek' is defined as: