OCPS Case Analysis & Practical Application 2

Question 1

A construction company pays a worker $22/hr regular and $33/hr overtime. The worker logged 50 hours in a week. What is the total gross pay?

Accepted Answer

$1,210

Answer

Regular pay: 40×$22=$880; overtime pay: 10×$33=$330; total=$1,210.

Question 2

An employee claims exempt status on their W-4 but earned $15,000 in the prior year and expects the same this year. What should the payroll processor do?

Accepted Answer

Honor the exemption as claimed

Answer

Employers must honor a valid exempt W-4 claim; the IRS, not the employer, enforces eligibility.

Question 3

A company discovers it over-withheld $200 in Social Security tax from an employee's paycheck. What is the correct corrective action?

Accepted Answer

Refund via the next paycheck and file a corrected 941

Answer

Over-withheld Social Security should be refunded to the employee on a subsequent payroll and corrected on Form 941-X.

Question 4

A semi-monthly pay schedule results in how many paychecks per year?

Accepted Answer

24

Answer

Semi-monthly means twice per month × 12 months = 24 paychecks annually.

Question 5

An employer in California fails to pay a terminated employee their final wages within 72 hours of resignation. What penalty may apply?

Accepted Answer

Waiting time penalties equal to one day's wages per day late, up to 30 days

Answer

California Labor Code Section 203 imposes waiting time penalties of one day's wages per day the wages remain unpaid, up to 30 days.

(OCPS) Online Certified Payroll Systems Certified Professional Practice Test

(OCPS) Online Certified Payroll Systems Certified Professional Practice Test

OCPS Case Analysis & Practical Application 2