2018
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PAYROLL
ACCOUNTING
Bieg/Toland
TEST 1
Student INSTRUCTOR’S COPY
Chapter 1 Date
SCORING RECORD
Section Total Points Deductions Score
A 60
B 40
Total 100
Section A—DIRECTIONS: Each of the following statements is either true or false. Unless directed otherwise
by your instructor, indicate your choice in the Answers column by writing “T” for a true answer or “F” for a false
answer. (2 points for each correct answer)
For
Answers Scoring
3. The Federal Income Tax Withholding Law requires that all employment data be kept on file
6. Unions and employment agencies are excluded from coverage under the Civil Rights Act of
7. Employers’ photocopying of new employees’ I-9 documents is not required under the
14. The FUTA tax paid to the federal government is used to pay benefits to the unemployed workers
15. Under the Affordable Care Act, the insurance provided by the employer only has to meet an
16. The information reporting requirements of the Affordable Care Act only involve the filing of
17. Once vested, workers have the right to receive a pension at retirement age, even if they no longer
18. Under the Family and Medical Leave Act, employers can exempt the highest paid 10 percent of
20. Form I-9, Employment Eligibility Verification, is completed only by employees who were born
ATS–2 Chapter 1/Achievement Test Solutions
SECTION A (continued)
For
Answers Scoring
21. The deadline for an employee to complete and sign Section 1 of Form I-9 is one year from the
22. Under the Family and Medical Leave Act, an employer can substitute an employee’s earned paid
24. Pre-hire questions pertaining to religion, gender, national origin, or age are allowed when these
25. If an investigative consumer report is being used, the applicant must be given a written notice that
26. Employers cannot terminate an employee for providing false information on an application form
27. The hiring notice is a record sent to the Payroll Department so that the new employee can
28. The payroll register is used by employers in preparing Form W-2, the wage and tax statement
29. The payroll register is used to provide the information needed to record the payroll entries made
Section B—DIRECTIONS: Complete each of the following sentences by writing in the Answers column the
letter of the word or words that correctly completes each statement. (5 points for each correct answer)
For
Answers Scoring
1. Which of the following is not a provision of the Fair Labor Standards Act (FLSA)? (A) Restricts
the employment of child labor, (B) Sets minimum wage, (C) Forbids discrimination in hiring, (D)
2. Which of the following bases for discrimination in employment practices is not covered in Title
VII of the Civil Rights Act of 1964 as amended? (A) Color, (B) Religion, (C) Age, (D) Sex,
3. Which of the following acts covers employee pension and welfare plans? (A) Affordable Care Act,
(B) Federal Insurance Contributions Act, (C) Age Discrimination in Employment
4. Medicare is a two-part health insurance program that was part of an amendment to what act?
(A) Federal Insurance Contributions Act, (B) Federal Income Tax Withholding Law, (C) Federal
5. Which of the following statements is not a provision of ERISA? (A) ERISA applies to pension and
welfare plans established by any employer engaged in commerce. (B) ERISA establishes minimum
vesting schedules that protect the workers’ benefits. (C) ERISA provides that all employees are
eligible to set up their own individual retirement accounts. (D) ERISA requires each employer to
6. Which of the following acts deals with the minimum wage paid to laborers for contractors who
supply materials to any agency of the United States? (A) Davis-Bacon, (B) Walsh-Healey Public
Contracts, (C) Federal Insurance Contributions, (D) McNamara-O’Hara Service Contract,
7. Which of the following forms is used to complete each employee’s Form W-2, Wage and Tax
Statement? (A) Payroll register, (B) Employee’s paycheck, (C) Change in payroll rate form,