Payroll Practices and Wage Deductions
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Questions and Answers

What happens to time off taken in advance of the entitlement date if the employee separates from the Company before they are eligible?

  • The employee can carry over the advance leave to the new employer.
  • The value of the advance leave taken will be deducted. (correct)
  • The employee is paid for the advance leave taken.
  • The time off will not affect the employee's remaining balance.

How are unpaid leave deductions applied to non-exempt hourly employees?

  • Their unpaid leave is deducted from their salary. (correct)
  • Deductions are applied only after a full week's absence.
  • They must request unpaid leave to avoid salary deductions.
  • They can take unlimited unpaid leave without salary deductions.

In what increments can paid time off be utilized according to the policy?

  • Only in hourly increments without restrictions.
  • In 4-hour or 8-hour increments. (correct)
  • Only in full-day increments.
  • In 2-hour increments if requested.

Which type of employee experiences salary reductions in full days or weeks only?

<p>Exempt salaried employees. (A)</p> Signup and view all the answers

What is a requirement for exempt salaried employees regarding partial-day deductions?

<p>Such deductions are only allowed under federal law. (D)</p> Signup and view all the answers

What type of employees are subject to salary deductions for unpaid leave?

<p>Both non-exempt hourly and salaried employees. (D)</p> Signup and view all the answers

What will happen to a fixed-salaried employee paid for fluctuating workweeks if they take unpaid leave?

<p>Their salary will be deducted accordingly. (C)</p> Signup and view all the answers

What occurs if an employee reaches the maximum pay allowed for their pay grade regarding merit increases?

<p>They may receive a lump sum payment instead. (B)</p> Signup and view all the answers

Which statement is true about the payroll practices at Qsource?

<p>Payroll records comply with applicable laws and regulations. (D)</p> Signup and view all the answers

Which of the following deductions can be made from an employee's wages?

<p>Voluntary donations to charity. (A), Mandatory retirement plan contributions. (C)</p> Signup and view all the answers

What responsibility does an employee have regarding income tax implications of maintaining a home office?

<p>Employees should consult a tax professional for guidance. (C)</p> Signup and view all the answers

What happens to wages when there is an overpayment?

<p>Repayment must equal the entire overpayment unless a different agreement is made. (D)</p> Signup and view all the answers

Which aspect is NOT ensured by Qsource regarding wage deductions?

<p>Deductions for medical premiums are automatically calculated. (A), Deductions for voluntary benefits will always be allowed. (B)</p> Signup and view all the answers

Who is responsible for determining the tax implications of employee benefits?

<p>The individual employee. (A)</p> Signup and view all the answers

Which of the following is true about the frequency of employee pay at Qsource?

<p>Employees receive a total of twenty-four paychecks per year. (C)</p> Signup and view all the answers

What is a consequence for an employee who has reached the maximum pay allowed for their pay grade when receiving a merit increase?

<p>The merit increase is paid as a lump sum. (B)</p> Signup and view all the answers

Which deductions are compliant with applicable laws and regulations governing wages?

<p>Employee's share of medical premiums. (C)</p> Signup and view all the answers

Which of the following payments is NOT the responsibility of Qsource regarding tax obligations?

<p>Calculating income tax liabilities. (A), Assuming additional tax liabilities. (B)</p> Signup and view all the answers

What happens to overpayment of wages according to the organization's policy?

<p>The entire amount must be repaid unless agreed otherwise. (B)</p> Signup and view all the answers

Which of the following statements is true regarding payroll practices?

<p>Payroll practices comply with applicable laws. (A)</p> Signup and view all the answers

What is included in the deductions authorized by employees?

<p>Flexible spending account contributions. (D)</p> Signup and view all the answers

Who must consult a tax professional regarding tax implications of a home office?

<p>The employee. (C)</p> Signup and view all the answers

What is the payment frequency for employees as stated in the payroll practices?

<p>Semi-monthly. (D)</p> Signup and view all the answers

What is true regarding time off taken in advance of the entitlement date?

<p>It is deducted at the value of the leave taken if the employee separates prior to eligibility. (D)</p> Signup and view all the answers

How will unpaid leave deductions affect non-exempt salaried employees?

<p>They will have unpaid leave deducted from their salary. (D)</p> Signup and view all the answers

What is the policy for exempt salaried employees regarding salary reductions?

<p>Salary reductions can only happen for full days or weeks. (C)</p> Signup and view all the answers

In what increments is paid time off allowed to be used according to the policy?

<p>In full day or four-hour increments. (A)</p> Signup and view all the answers

Which statement is accurate for employees who take unpaid leave?

<p>Employees paid a fixed salary will have partial deductions based on the duration of leave. (A)</p> Signup and view all the answers

When are partial-day deductions for exempt salaried employees allowed?

<p>Only under specific federal law instances. (A)</p> Signup and view all the answers

What happens when an employee separates from the company before being eligible to take advance leave?

<p>The leave will be deducted at the value of what was taken. (B)</p> Signup and view all the answers

Flashcards

Annual Merit Increase

A discretionary pay increase given to employees based on performance evaluation, potentially as a lump sum if the maximum pay grade is reached.

Semi-monthly Pay Schedule

Employees are paid twice a month, resulting in 24 pay periods per year.

Payroll Compliance

Qsource follows all federal, state, and local laws related to payroll.

Wage Deductions

Payroll deductions for employee benefits and taxes, following legal guidelines.

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Exempt Employee Protections

Qsource ensures no illegal deductions reduce exempt employee salaries below set amounts, complying with the FLSA.

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Overpayment Repayment

Employees must repay overpayments to the company. Repayment may be in one lump sum, or by a series of smaller deductions, depending on the agreement.

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Employee's Tax Responsibility

Employees are responsible for understanding and addressing the tax implications of a home office.

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Payroll Tax Deductions

Required deductions for federal, state, and local taxes, as well as Social Security and Medicare taxes.

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Time off deductions

Deductions from an employee's pay for time off taken before eligibility.

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FLSA status

Federal labor law determining employee pay and leave rights (e.g., exempt/non-exempt).

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Non-exempt hourly/salaried employees

Employees paid hourly or salaried who aren't exempt from overtime and other FLSA requirements.

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Exempt salaried employees

Employees paid a salary and exempt from overtime and some other FLSA laws.

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Partial-day deductions

Deductions for less than a full day of work, allowed by law for some exempt employees.

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Time off increments

Time off can be used in 4-hour or 8-hour blocks, within policy and legal limits.

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Advance leave deductions

Deductions for leave taken before the employee is allowed to use it, if separation occurs before eligibility.

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Merit Increase Eligibility

Employees can receive a merit increase based on their performance evaluation in August, but only if they aren't already at the maximum pay for their position.

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Lump Sum Merit Increase

If an employee reaches the maximum pay for their position, their merit increase might be paid out in one lump sum instead of a percentage increase to their base pay.

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Discretionary Merit Increases

Merit increases are not guaranteed and require approval from the CEO and the Board.

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Exempt Employee Deductions

Qsource prevents any illegal deductions from exempt employees' salaries that would reduce their pay below the set amount.

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Home Office Tax Responsibilities

Employees are responsible for understanding the tax implications of having a home office.

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Non-exempt employee

An employee who is not exempt from overtime pay and other FLSA requirements. Typically paid hourly or a fixed salary for fluctuating workweeks.

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Exempt employee

An employee who is exempt from overtime pay and some other FLSA requirements. Usually salaried, but can be paid hourly under certain conditions.

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Deductions for unpaid leave

When an employee takes time off that's not covered by paid time off, their pay is reduced based on the time they were absent.

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Study Notes

Annual Merit Increases

  • Employees may receive an annual merit increase in August, based on performance evaluations.
  • Merit increases are discretionary and require CEO and Board approval.
  • Maximum pay grade employees receive increases as lump sum payments, not as percentage adjustments.

Payroll Practices

  • Employees are paid semi-monthly (24 pay periods per year).
  • A pay schedule is available on the company intranet.
  • Payroll complies with all federal, state, and local laws.
  • Qsource avoids improper deductions for exempt employees and follows FLSA salary basis rules.

Wage Deductions

  • All deductions adhere to federal, state, and local regulations, including minimum wage and overtime laws.
  • Deductions never reduce earnings below minimum wage levels or exempt employee predetermined salaries.
  • Deductions include:
    • Employee health insurance premiums (medical/dental).
    • Retirement/pension plan contributions (company-sponsored).
    • Short-term disability insurance.
    • Flexible Spending Account (FSA) contributions.
    • Voluntary benefits.

Taxes

  • Federal, state, and local taxes, along with FICA (Social Security/Medicare) are deducted.
  • Employees are responsible for understanding home office tax implications.
  • Qsource does not offer tax advice and is not liable for any tax implications.
  • Employee should consult a tax professional.

Overpayments

  • Overpayments must be repaid to the company.
  • Repayment is by the full amount unless another method is agreed upon.

Time Off Deductions

  • Time taken prior to eligibility will be deducted if an employee leaves the company before accruing time off for the time taken.
  • Non-exempt employees (fixed salary with fluctuating workweeks and hourly/salaried) have unpaid leave deducted from their salary.
  • Exempt salaried employees have salary reductions only in full days or full weeks (unless specific federal law exceptions allow)
  • Paid time off can be used in 4 or 8-hour increments (within company policy and applicable law).

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Description

This quiz covers key aspects of payroll practices, including annual merit increases, payroll schedules, and wage deductions. Understand how these practices comply with legal regulations and affect employee compensation. Test your knowledge on the rules that govern these important HR functions.

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