OCPS Regulatory Compliance & Legal Framework 2

Question 1

Under the Portal-to-Portal Act, which activity is generally NOT compensable under the FLSA?

Accepted Answer

Walking from a parking lot to the worksite

Answer

The Portal-to-Portal Act generally excludes commuting time, including walking from a parking lot to the worksite, from FLSA compensable time.

Question 2

Which IRS form must employers use to report nonemployee compensation of $600 or more paid during the tax year?

Accepted Answer

Form 1099-NEC

Answer

Form 1099-NEC (Nonemployee Compensation) was reinstated in 2020 specifically for reporting payments of $600 or more to independent contractors.

Question 3

The Employee Retirement Income Security Act (ERISA) primarily governs which aspect of employment?

Accepted Answer

Private-sector employee benefit plans

Answer

ERISA sets minimum standards for most voluntarily established retirement and health plans in private industry to protect employees.

Question 4

A state's overtime law requires overtime after 8 hours in a workday, while federal FLSA requires overtime only after 40 hours in a workweek. Which rule applies?

Accepted Answer

The state daily overtime rule applies because it is more beneficial to the employee

Answer

Under FLSA, when state law provides greater protections to employees than federal law, employers must comply with the higher state standard.

Question 5

What does the term 'backup withholding' refer to in payroll contexts?

Accepted Answer

A 24% withholding rate applied when a payee fails to provide a correct TIN

Answer

Backup withholding at 24% is required when a payee does not furnish a correct taxpayer identification number or is otherwise subject to backup withholding.

(OCPS) Online Certified Payroll Systems Certified Professional Practice Test

(OCPS) Online Certified Payroll Systems Certified Professional Practice Test

OCPS Regulatory Compliance & Legal Framework 2