HAC HAC Healthcare Payroll & Compensation Accounting

Question 1

Under FLSA, which healthcare workers are generally classified as exempt from overtime pay requirements?

Accepted Answer

Licensed physicians earning above the salary threshold

Answer

Licensed physicians and other highly compensated professionals who meet salary and duties tests are exempt from FLSA overtime under the white-collar exemption.

Question 2

A hospital's total compensation expense for the period includes which of the following in addition to gross wages?

Accepted Answer

Employer payroll taxes and benefits costs

Answer

Total compensation expense encompasses gross wages plus employer-side payroll taxes (FICA, FUTA, SUTA) and employee benefits such as health insurance and retirement contributions.

Question 3

Which IRS form must a hospital use to report annual wages and withheld taxes for each employee?

Accepted Answer

Form W-2

Answer

Form W-2 (Wage and Tax Statement) is issued annually by employers to report each employee's wages and withheld federal, state, and local taxes.

Question 4

When a healthcare facility accrues vacation pay at year-end, which accounting entry is correct?

Accepted Answer

Debit Vacation Expense; Credit Accrued Vacation Liability

Answer

Accruing earned but unpaid vacation requires debiting compensation expense and crediting a current liability to match the cost to the period in which it was earned.

Question 5

A healthcare organization classifies travel nurse agency fees as which type of labor cost?

Accepted Answer

Contract or agency labor (non-employee)

Answer

Agency or contract labor is reported separately from employee wages because the facility pays a staffing agency rather than the individual worker, with no payroll tax obligation.

(HAC) Healthcare Accounting Certification Practice Test

(HAC) Healthcare Accounting Certification Practice Test

HAC HAC Healthcare Payroll & Compensation Accounting