Self-employed persons include their self-employment taxes in their quarterly payment
of estimated federal income taxes.
Public safety employees of a state can be granted compensatory time off in lieu of
overtime compensation.
ERISA provides for full vesting of the employers contributions in three years or
gradually over six.
The Fair Labor Standards Act is commonly known as the Federal Wage and Hour Law.
In January 2016, workers who receive the minimum hourly wage are paid $6.10 an
hour.
The standard deduction varies according to whether the wage-bracket method or the
percentage method is used.
The trend toward outsourcing of payroll operations has weakened in recent years.
State and local government employers must make their tax deposits according to a
different schedule than private employers.
NOTE: In all problems, unless instructed otherwise, compute the hourly and overtime
rates as follows:
1) Carry the hourly rate and the overtime rate to 3 decimal places and then round off to
2 decimal places (round the hourly rate to 2 decimal places before multiplying by one
and one-half to determine the overtime rate).
2) If the third decimal place is 5 or more, round to the next higher cent.
3) If the third decimal place is less than 5, drop the third decimal place. Also, use the
minimum hourly wage of $7.25 in solving these problems and all that follow. Gates is
paid a semimonthly salary of $900.00. Overtime is paid for hours beyond 40 in each
workweek. One week, Gates works 6¾ hours overtime.
If an investigative consumer report is being checked, the job applicant must be notified
in writing by the employer that such a report is being sought.
Bona fide meal periods when the employee is completely relieved from duty are not
considered working time.
Provided employees can use the on-call time for their own purposes, this time is not
compensable.