Questions pertaining to religion, gender, national origin, or age are
allowed on application forms when these are bona fide occupational qualifications for a
job.
When employees spend time changing clothes on the employers premises, this time
must be counted as part of their principal activities for which they are always fully
compensated.
Tips received by employees are not included as disposable earnings subject to
garnishment.
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. Jose Cruz earns $2,275 each month and works 37½ hours each week. His
employer pays him overtime (for hours beyond 37½) and uses the overtime premium
approach.
If an employer is subject to a credit reduction because of Title XII advances, the penalty
for the entire year will be paid only with the deposit for the last quarter of the year.
The adjusting entry to record the accrued vacation pay at the end of an accounting
period includes credits to the tax withholding liability accounts.
The amounts needed for the payroll entries in the journal come from the employees
earnings record.
In order to obtain the maximum credit allowed against the federal unemployment tax,
the employer must have paid its SUTA contributions by the due date of Form 940.
Under the provisions of the Consumer Credit Protection Act, an employer can discharge
an employee simply because the employees wage is subject to garnishment for a single
indebtedness.
Businesses with $2,500 or less in quarterly tax liabilities can pay the taxes when they
file Form 941.
FICA includes partnerships in its definition of employer.
Employees are liable for their FICA taxes only until the taxes have been collected from
their pay by their employer.
Employees of a state government hired before January 1, 1986, and covered by a public
retirement plan, are exempt from FICA coverage.
Each state imposes an income tax on employees that is 2 percent of gross wages.
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. Bakker is
paid an hourly rate of $10.65.
Workers compensation insurance premiums for employers vary according to the
different degrees of danger in various classes of jobs and employers accident experience
rate.
Under the federal income tax withholding law, a definition of employee excludes
partners.
A person holding two jobs may have additional income tax withheld by increasing the
number of withholding allowances claimed.