12 Questions
What is the purpose of the Form W-4 (Employee’s Withholding Certificate)?
To provide information for federal income tax withholding
Which tax is paid by employers to the federal government?
Federal Unemployment Tax Act (FUTA)
What does Worker’s Compensation Insurance (WCI) protect against?
Losses due to employee injury or death on the job
What does the term 'Net Pay' refer to in the context of payroll?
Earnings after all deductions, what the worker takes home
Which tax does not have a wage base minimum but has a maximum wage base for Social Security and Medicare purposes?
FICA Social Security
What is the purpose of the Individual employee earnings record in payroll?
To summarize total wages paid and deductions for the year
What is the consequence for a business that fails to follow federal, state, & local laws regulating the payroll process?
Be fined penalties & interest
Which form does an employer fill out to receive an EIN from the IRS?
Form SS-4
Under the Fair Labor Standards Act (FLSA), what rate are hourly employees paid for overtime hours worked?
At least one and a half times their regular pay rate
What test is applied to determine if an employer must follow the rules of the FLSA when doing business across state lines?
Interstate Commerce Test
What is the primary difference between an hourly employee and a salaried employee?
Hourly employees are paid only for hours worked, while salaried employees receive a fixed amount regardless of hours worked
What is the purpose of a pay/payroll period in calculating an employee's earnings?
To determine the amount of an employee’s earnings
Test your knowledge on federal, state, and local laws regarding the payroll process, calendar year usage, confidentiality of payroll data, penalties for non-compliance, timely payroll processing, payroll taxes, and EIN assignment by the IRS.
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