Labor Laws and Employment Practices Flashcards

Under IRS guidelines, which factor is MOST important in determining whether a worker is an employee or independent contractor?

Answer: The degree of behavioral and financial control the hiring party has over the worker

The IRS uses behavioral control, financial control, and type of relationship to classify workers, with the level of control being the primary determinant.

What form must employers use to verify an employee's eligibility to work in the United States?

Answer: I-9

The I-9 Employment Eligibility Verification form must be completed for all new hires to verify their identity and authorization to work in the U.S.

The Fair Labor Standards Act (FLSA) requires that non-exempt employees be paid overtime at what rate for hours worked over 40 in a workweek?

Answer: 1.5 times the regular rate

The FLSA mandates time-and-a-half (1.5×) the regular rate of pay for all hours worked beyond 40 in a single workweek for non-exempt employees.

Which federal tax form do employers use to report annual wages paid and taxes withheld for each employee?

Answer: Form W-2

Employers must provide each employee with a W-2 form showing annual wages earned and all taxes withheld, which employees use to file their income tax returns.

How long must employers retain completed I-9 forms for a terminated employee?

Answer: 1 year after termination or 3 years after date of hire, whichever is later

Federal law requires I-9 retention for 3 years from the date of hire OR 1 year after termination, whichever date is later.

Under the Federal Insurance Contributions Act (FICA), what percentage of an employee's wages is withheld for Social Security tax up to the annual wage base limit?

Answer: 6.2%

The Social Security tax rate is 6.2% on employee wages up to the annual wage base; the employer must match this amount with an equal contribution.

Which law prohibits employers from discriminating against employees or applicants based on race, color, religion, sex, or national origin?

Answer: Title VII of the Civil Rights Act of 1964

Title VII of the Civil Rights Act of 1964 is the primary federal law prohibiting employment discrimination based on race, color, religion, sex, or national origin.