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Question # 4

Under FLSA, how many hours would be paid a time and one half for the following biweekly period, assuming that the employee is a health care professional paid under the special FLSA rules?

 

A.

0

B.

12

C.

24

D.

16

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Question # 5

Who of the following most likely is an independent contractor?

A.

A repairman who is called periodically to perform maintenance on the PC's of a dental office.

B.

A person normally employed in the mail room who comes in after hours to clean the offices.

C.

A commissioned salesman who works from his home.

D.

A retiree called back to work on a temporary basis

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Question # 6

Under FLSA, how many hours must be paid at the overtime rate of pay for the following biweekly period assuming the employer is a hospital qualified under the special provisions of the FLSA?

 

A.

8

B.

4

C.

15

D.

14

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Question # 7

Calculate the employee's gross pay under the FLSA based on the following data: Rate of pay per hour: $8.00 Production bonus: $25.00 Shift differential per hour: $$0.25 Total shift hours in workweek: 44

A.

$380.64

B.

$404.50

C.

$405.64

D.

$377.00

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Question # 8

Assuming that the moving expense was incurred in 2009, which of the following expense reimbursements is excludable from gross income?

A.

Travel expenses of spouse to search for new residence at new job location

B.

Mileage for a pre-move house hunting trip

C.

Lodging expenses while waiting for the new home to be built

D.

Mileage while moving from the old residence to the new

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Question # 9

Under the FLSA, how long are employers required to keep records relating to wages, hours, and conditions of employment?

A.

permanently

B.

4 years or until the file is no longer active

C.

3 years

D.

7 years

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Question # 10

Bass Biting Company operates bait, tackle and boat sales store employing 12 full time clerks and salespeople in addition to the owner and his family members. Occasionally, Bass Biting assigns special work to individuals other than its regular employees and family members. Employee Lois was a bait and tackle shop clerk until she retired on June 30. Lois returned to the bait and tackle shop to perform clerical duties on August 15 and worked through Labor Day to assist Bass Biting through its busy season. Determine Lois' employment status with Bass Biting

A.

Statutory nonemployee

B.

Independent contractor

C.

Nonstatutory employee

D.

Employee

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Question # 11

The employer may classify a worker as an independent contractor if the worker:

A.

Signs a contract

B.

Furnishes his or her own tools and supplies

C.

Fails the common-law test

D.

Is retired or over age 65

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Question # 12

All of the following data elements are required to be maintained in the employee master file EXCEPT:

A.

birth date

B.

marital status

C.

occupation

D.

social security number

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Question # 13

Which of the following statements describes a self-insured workers' compensation plan?

A.

The employer funds the workers' compensation payments

B.

The state pays the workers' compensation payments

C.

The wages will continue as if the employee is still working

D.

The individual employee is responsible for his own insurance

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Question # 14

What is the total amount that must be reported in box 14?

A.

$4,980

B.

$ 0

C.

$10,480

D.

$23,582

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Question # 15

The correct entry to record a payment of the employer's share of FICA tax is:

A.

Debit salary expense, credit tax withheld

B.

Debit payroll tax expense, credit cash

C.

Debit tax withheld, credit salary expense

D.

Debit cash, credit payroll tax expense

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Question # 16

A plan to ensure business can continue in the event of a flood is called a:

A.

Disaster recovery plan

B.

Group term life plan

C.

Implementation plan

D.

Strategic business plan

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Question # 17

An HRIS that has one database with functionality pertaining to multiple applications is often called a (n)

A.

Integrated system

B.

Segregated system

C.

Stand-alone system

D.

Cross-functional system

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Question # 18

Which of the following is tax-free to all employees even if only provided to highly paid employees?

A.

Cafeteria plans

B.

Athletic facilities

C.

401(k) plans

D.

Transportation fringe benefits

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Question # 19

Sally's department was scheduled to work from 8:00 a.m. until 5:00 p.m. It was announced to all employees that a severe winter storm was expected to reach the city between 4:00 p.m. and 5:00 p.m. Employees of Sally's department asked if they, like most other departments, would be allowed to leave work at 3:00 p.m. to avoid being caught in the storm. Sally was sympathetic, but after much discussion denied the request, stating that the policy was clear that employees were to remain on duty until 5:00 p.m. Which of the following management styles is Sally demonstrating?

A.

Diplomatic

B.

Bureaucratic

C.

Autocratic

D.

Participative

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Question # 20

The BEST reason for tracking pay-related problem statistics is to enable Payroll to:

A.

justify more resources to handle more problems

B.

apologize to clients in a more professional manner

C.

identifies root causes and take actions to prevent similar recurrences

D.

direct problems to those who caused the problem

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Question # 21

A single company of a group of related companies can file the Forms W-2 and 941 under it's EIN for all employees of all the related companies, whether or not the employees are concurrently employed, under which of the following reporting options?

A.

Power of attorney

B.

Common paymaster

C.

Establishment reporting

D.

Reporting agent

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Question # 22

Employee's regular monthly salary is $950. Employee is scheduled to work 37 hours per week. Under the FLSA, how much would this employee be paid for each hour in excess of 37 but less than 40 in the workweek?

A.

$5.93

B.

$6.42

C.

$0

D.

$5.48

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Question # 23

An advantage of client/server technology for payroll is:

A.

Maintenance fees from the vendor are eliminated

B.

Fewer programmers are required to maintain the payroll

C.

Time required to balance a payroll is reduced.

D.

Programs and database need not be stored on the mainframe

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Question # 24

The FLSA term "exempt" generally means the employer need NOT:

A.

Withhold federal income tax

B.

Pay overtime

C.

Pay federal income tax

D.

Pay a minimum amount

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Question # 25

Which of the following would not be included in the planning stage of a system implementation?

A.

Creating a task list

B.

Determining resources needed for the project

C.

Documenting the new software

D.

Defining the project's goals and objective

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Question # 26

The term Workforce Management refers to:

A.

Third party background check services

B.

Time management

C.

Recruiting services

D.

Management of employee business functions

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Question # 27

Certain company records must be retained for four years to comply with regulations of which of the following agencies?

A.

U.S. Citizenship and Immigration Service

B.

Internal Revenue Service

C.

Wage and Hour Division, Department of Labor

D.

Social Security Administration

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Question # 28

Under the FLSA, how many hours would be paid at time and one half for the following biweekly period, assuming that the employee is an assembly line worker?

A.

8

B.

0

C.

20

D.

10

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Question # 29

The entry to recorded an employee's repayment of a salary advance is (employee repays advance by personal check):

A.

Debit accounts receivable, credit cash

B.

Debit salary expense, credit accounts receivable

C.

Debit accounts receivable, credit cash

D.

Debit cash, credit accounts receivable

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Question # 30

In 2009, an on-line payroll system alerts the payroll specialist entering data that an employee has a birth date of 1996 or after. What might this indicate?

A.

A special Form W-4 is required each year for that employee

B.

The employer may be able to suspend deductions of Social Security and Medicare

C.

Employee may have been hired in violation of child labor laws

D.

Employee is exempt from federal income tax

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Question # 31

Which of the following is not a by-product of documentation?

A.

Simplified training

B.

Consistency

C.

Reference material

D.

Firewall violation prevention

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Question # 32

At the time that wages are paid, an advance payment of EIC would be recorded as:

A.

Debit FIT payable, credit cash

B.

Debit cash, credit EIC payable

C.

Debit EIC payable, credit FICA payable

D.

Debit EIC payable, credit cash

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Question # 33

Penalties for failure to make timely deposits are determined by:

A.

a four-tiered penalty structure based on the number of days the deposit is late

B.

15% of the undeposited amount with a maximum of $100,000

C.

a flat rate of 10% for late deposits

D.

5% of the undeposited amount with a maximum of $100,000

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Question # 34

An employee earns $9 per hour and an additional 10 cents per hour for hours worked after 7:00 p.m. If an employee works from 3:00 p.m. to 11:00 p.m., Monday through Friday, what is the employee's weekly gross pay under the Fair Labor Standards Act?

A.

$360

B.

$362

C.

$364

D.

$361

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Question # 35

What is the amount reported in box 12, and what code is used?

A.

C 4,980

B.

D 24,582

C.

C 10,480

D.

D 29,682

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Question # 36

When paying supplemental wages along with regular wages WITHOUT specifying the amount of each, how would a company determine the amount of income tax to withhold from the supplemental wages if the employee has been paid no supplemental wages so far during the year and the supplemental wage payment is no more than $1,000?

A.

Withhold income tax as if the total were a single payment for a regular payroll period.

B.

Withhold a flat 25% from the supplemental wages and withhold from regular wages using the appropriate table.

C.

Withhold a flat 25% from the supplemental wages.

D.

Compute income tax withholding on the regular wages separate from the supplemental wages

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Question # 37

Which of the following records MUST be kept for four years?

A.

OSHA records

B.

time cards

C.

voided payroll checks

D.

hours worked

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