OCPS Regulatory Compliance & Legal Framework 3 — Questions and Answers
Question 1: An employer in a state with no state income tax still has which federal withholding obligations?
- No withholding obligations because the state has none
- Federal income tax, Social Security, and Medicare withholding only (Correct answer)
- Federal income tax withholding only
- Social Security and Medicare withholding only
Correct answer: Federal income tax, Social Security, and Medicare withholding only
Regardless of state tax laws, employers must withhold federal income tax, Social Security (6.2%), and Medicare (1.45%) from all covered employee wages.
Question 2: Under the Worker Adjustment and Retraining Notification (WARN) Act, covered employers must provide how many days' advance notice before a mass layoff?
- 30 days
- 45 days
- 60 days (Correct answer)
- 90 days
Correct answer: 60 days
The WARN Act requires covered employers (100+ employees) to provide at least 60 calendar days' advance written notice of plant closings and mass layoffs.
Question 3: Which section of the Internal Revenue Code establishes the employer's requirement to withhold income taxes from employee wages?
- IRC Section 3101
- IRC Section 3111
- IRC Section 3402 (Correct answer)
- IRC Section 3121
Correct answer: IRC Section 3402
IRC Section 3402 specifically requires employers to withhold income tax from wages paid to employees.
Question 4: The Lilly Ledbetter Fair Pay Act of 2009 primarily affects payroll by:
- Mandating equal pay for substantially equal work regardless of gender
- Resetting the statute of limitations for pay discrimination with each discriminatory paycheck (Correct answer)
- Requiring employers to disclose salary ranges in job postings
- Establishing a private right of action for wage theft
Correct answer: Resetting the statute of limitations for pay discrimination with each discriminatory paycheck
The Lilly Ledbetter Fair Pay Act clarifies that each discriminatory paycheck resets the 180-day filing window for pay discrimination claims under Title VII.
Question 5: When must an employer deposit federal payroll taxes under the semi-weekly deposit schedule?
- By the 15th of the following month for all payroll periods
- On the same day wages are paid
- By Wednesday for payroll paid Saturday through Tuesday; by Friday for payroll paid Wednesday through Friday (Correct answer)
- Within 3 banking days of the payroll date
Correct answer: By Wednesday for payroll paid Saturday through Tuesday; by Friday for payroll paid Wednesday through Friday
Semi-weekly depositors must deposit by Wednesday for wages paid on Saturday–Tuesday and by Friday for wages paid on Wednesday–Friday.
Question 6: Which law prohibits employers from retaliating against employees who file complaints or participate in proceedings under the FLSA?
- The National Labor Relations Act
- FLSA Section 15(a)(3) (Correct answer)
- The Sarbanes-Oxley Act
- Executive Order 11246
Correct answer: FLSA Section 15(a)(3)
FLSA Section 15(a)(3) expressly prohibits retaliation against any employee who files a complaint or participates in an FLSA proceeding.
Question 7: A company acquires another business and assumes all its employees. Under the FUTA successor-employer rule, what transfers to the new employer?
- Only the FUTA tax rate, not the wage base already paid
- The employees' accumulated FUTA taxable wage history, so the acquirer does not re-tax wages already taxed (Correct answer)
- No FUTA attributes transfer; the acquirer must start fresh
- Only the predecessor's state unemployment experience rating
Correct answer: The employees' accumulated FUTA taxable wage history, so the acquirer does not re-tax wages already taxed
Under the FUTA successor-employer rule, previously paid FUTA wages carry over so the successor does not re-impose FUTA tax on wages already subject to FUTA for that calendar year.
OCPS Regulatory Compliance & Legal Framework 3
An employer in a state with no state income tax still has which federal withholding obligations?