OCPS OCPS Workforce Management & Labor Relations 2 — Questions and Answers
Question 1: Which form must employers complete to verify a new hire's eligibility to work in the United States?
- W-4
- I-9 (Employment Eligibility Verification) (Correct answer)
- 1099-NEC
- SS-4
Correct answer: I-9 (Employment Eligibility Verification)
The I-9 form, required by USCIS, verifies that every new employee is legally authorized to work in the United States.
Question 2: Under the WARN Act, when must employers notify employees of a mass layoff?
- At least 30 days in advance
- At least 60 days in advance (Correct answer)
- At least 90 days in advance
- No advance notice is required
Correct answer: At least 60 days in advance
The federal WARN Act requires employers with 100 or more employees to provide at least 60 days' advance written notice before a mass layoff or plant closing.
Question 3: What is 'imputed income' in payroll, and when does it commonly arise?
- Wages earned in a foreign country and converted to USD
- The taxable value of non-cash benefits (such as employer-paid life insurance over $50,000) that must be added to an employee's gross wages (Correct answer)
- Overtime pay owed but not yet disbursed
- Deferred compensation contributed to a 401(k)
Correct answer: The taxable value of non-cash benefits (such as employer-paid life insurance over $50,000) that must be added to an employee's gross wages
Imputed income is the fair market value of non-cash benefits that the IRS requires to be included in an employee's taxable wages, such as group term life insurance over $50,000.
Question 4: Which labor law requires equal pay for equal work regardless of sex?
- ERISA
- The Equal Pay Act of 1963 (Correct answer)
- Title VII of the Civil Rights Act
- The Age Discrimination in Employment Act
Correct answer: The Equal Pay Act of 1963
The Equal Pay Act of 1963 prohibits wage discrimination based on sex when employees perform substantially equal work in the same establishment.
Question 5: What is the purpose of a 'final paycheck law' at the state level?
- To mandate that the last paycheck of the year include a year-end bonus
- To specify the deadline by which an employer must issue a departing employee's final wages (Correct answer)
- To require severance pay for all terminations
- To limit the amount owed on a final paycheck
Correct answer: To specify the deadline by which an employer must issue a departing employee's final wages
State final paycheck laws set deadlines for delivering an employee's last wages, which vary depending on whether the employee quit or was terminated.
Question 6: How should payroll handle a garnishment order for an employee's wages?
- Ignore it unless submitted by a federal court only
- Withhold the court-ordered amount from the employee's disposable earnings and remit it to the appropriate agency or creditor (Correct answer)
- Terminate the employee to avoid compliance obligations
- Withhold the employee's entire paycheck until the debt is resolved
Correct answer: Withhold the court-ordered amount from the employee's disposable earnings and remit it to the appropriate agency or creditor
Employers must comply with wage garnishment orders by deducting the specified amount from disposable earnings and forwarding it to the designated creditor or agency.
OCPS OCPS Workforce Management & Labor Relations 2
Which form must employers complete to verify a new hire's eligibility to work in the United States?