Accounting Chapter 1 Homework Which The Following Part The Social Security

E–1

EXAMINATION QUESTIONS

To aid instructors using Payroll Accounting, we have provided a section of examination

questions in this manual. The section contains true-false and multiple-choice questions

for Chapter 1, with the addition of short problems for Chapters 2, 3, 4, 5, and 6, ar-

ranged according to the presentation of the subject matter within these chapters of the

textbook.

There is a sufficient number of test questions so that you may vary your examina-

tions from semester to semester or prepare different examinations for each section of

the course you may be teaching. Each of the true-false and multiple-choice questions is

preceded by a letter answer to the question and a page reference to the textbook page

upon which the answer may be found.

CHAPTER 1

True-False Questions

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Wage and Hour Law.

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employees of the provisions of the law.

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government.

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of the tax is only paid by the employer.

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(Medicare).

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used for paying state and federal administrative expenses of the un-

employment program.

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ings from self-employment derived by an individual from any trade or

business.

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gross wages.

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in their state.

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employer must have 15 or more workers.

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dismissal.

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discrimination in employment on government contracts.

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of the Civil Rights Act by reason of a contract or subcontract involving

federal funds.

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as an exempt employer.

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ment Act provides for all workers over 40 involves executives who are

65 or older and who have held high policy-making positions during the

two-year period prior to retirement.

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onciliation Act, every employer is required to report the name, address,

and social security number of each new employee to the appropriate

state agency.

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documents.

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for contractors who furnish materials to any agency of the United

States, the contract amount must be at least $10,000.

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time.

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employee who has not worked for the employer for at least one year

and has worked for the company at least 1,250 hours in the last year.

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sion plans receive benefits from those plans.

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retirement fund in the event they are terminated before the normal

retirement age.

Examination Questions/Chapter 1 E–3

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be given a written notice that the information obtained will be used in

the employment decision.

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years or gradually over six.

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employees during the previous year are required to provide health in-

surance coverage for all full-time employees.

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and small employers.

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employees.

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cording to the different degrees of danger in various classes of jobs

and employers’ accident experience rate.

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ployees absent from their jobs due to illness, accident, or disease not

arising out of their employment.

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that the new employee can be properly added to the payroll.

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cant is hired.

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allowed on application forms when these are bona fide occupational

qualifications for a job.

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files.

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employee.

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the amount of remuneration, the deductions, and the net amount paid

for each pay period.

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the employee’s earnings record.

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recent years.

E–4 Chapter 1/Examination Questions

Multiple-Choice Questions

1–3

a. Fair Labor Standards Act

b. Federal Income Tax Act

c. Federal Insurance Contributions Act

d. Federal Unemployment Tax Act

e. Fair Employment Laws

1–4

a. Federal Income Tax Law

b. Federal Old-Age and Survivors’ Trust Fund

c. Medicare

d. Self-Employment Contributions Act

e. All are part of the social security program.

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that is credited to the Federal Old-Age and Survivors’ Trust Fund and

the Federal Disability Insurance Trust Fund?

a. Federal Income Tax Act

b. Federal Insurance Contributions Act

c. Fair Labor Standards Act

d. Federal Unemployment Tax Act

e. Employee Retirement Income Security Act

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(FLSA)?

a. Sets up minimum wage

b. Tax on net earnings of self-employed individuals

c. Allows discrimination in hiring

d. Separate tax on employees and employers

e. All are provisions of the FLSA

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of pay at:

a. $10.00.

b. $7.25.

c. $7.75.

d. $5.00.

e. $8.50.

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a. Federal unemployment taxes (FUTA)

b. State income tax withholding

c. Medicare

d. Federal income tax withholding

e. All are part of the social security program

Examination Questions/Chapter 1 E–5

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employees and is deducted from their gross pay?

a. Income tax withholding laws

b. Federal Unemployment Tax Act

c. Fair Labor Standards Act

d. Federal Insurance Contributions Act

e. Employee Retirement Income Security Act

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administrative expenses of the unemployment program?

a. Federal Income Tax Act

b. Federal Unemployment Tax Act

c. Federal Wage and Hour Law

d. Estate Unemployment Tax Acts

e. Workers’ Compensation Laws

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Opportunity Commission (EEOC)?

a. Americans with Disabilities Act

b. Immigration Reform and Control Act of 1986

c. Civil Rights Act of 1964

d. Age Discrimination in Employment Act

e. None of the above

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a. Wage and Hour Act.

b. Social Security Act.

c. Age Discrimination Act.

d. Equal Employment Opportunity Act.

e. Immigration Reform Act.

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Employment Act except:

a. labor unions.

b. an employer with 15 employees.

c. state government employees (other than elected officials).

d. employment agencies.

e. All of the above are covered.

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virtually all workers up to the age of:

a. 50.

b. 65.

c. 70.

d. 75.

e. 40.

E–6 Chapter 1/Examination Questions

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a. contributions to individual retirement accounts.

b. verification of employment eligibility.

c. eligibility for unemployment benefits.

d. eligibility for Medicare benefits.

e. none of the above.

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laborers for contractors on federal government construction contracts?

a. Walsh-Healey Public Contracts Act

b. Fair Labor Standards Act

c. McNamara-O’Hara Service Contract Act

d. Occupational Safety and Health Act

e. Davis-Bacon Act

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of the following acts?

a. Immigration Reform and Control Act of 1986

b. Civil Rights Act of 1964

c. Age Discrimination in Employment Act

d. Americans with Disabilities Act

e. None of the above

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a. age of new hires.

b. vesting status of all employees.

c. health status of employees on medical leave.

d. social security status of new hires.

e. employment eligibility of new hires.

c 17.

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Which of the following acts deals with the unpaid leave for a family or

medical emergency?

a. Fair Labor Standards Act

b. Occupational Safety and Health Act

c. Family and Medical Leave Act of 1993

d. Walsh-Healey Public Contracts Act

e. None of the above

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the employer?

a. Must provide for 9 months of unpaid leave

b. Must allow all employees to take the leave

c. Must pay the employee 50 percent of his or her salary during the

leave

d. Must continue the employee’s health-care coverage during the

leave

e. All of the above

Examination Questions/Chapter 1 E–7

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Family and Medical Leave Act?

a. All salaried employees

b. Employees with less than a five-year tenure with the employer

c. All employees under the age of 30

d. All employees earning the minimum wage

e. Highest-paid 10 percent of their workforce

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employee’s pension fund in three years or gradually over:

a. ten years.

b. five years.

c. six years.

d. seven years.

e. No gradual vesting is allowed.

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employers with:

a. 15 or more full-time employees during the previous year.

b. 1 or more full-time employees during the previous year.

c. 200 or more full-time employees during the previous year.

d. 50 or more full-time employees during the previous year.

e. 200 or more full- and part-time employees during the previous

year.

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health insurance to their employees?

a. Civil Rights Act

b. Fair Labor Standards Act

c. Family and Medical Leave Act

d. Patient Protection and Affordable Care Act

e. None of the above

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work-related injury?

a. Workers’ Compensation

b. Federal Wage and Hour

c. Family and Medical Leave

d. State Disability

e. Federal Unemployment

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a. Secondary duties

b. Education requirements and special skills needed

c. Attendance requirements

d. Job’s essential functions, including any physical requirements

e. All of the above

E–8 Chapter 1/Examination Questions

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are allowed if:

a. all employees are asked the same questions.

b. only foreign-born applicants are asked these questions.

c. these factors are bona fide occupational qualifications for the job.

d. they are not in written form.

e. the applicant is married.

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inquiries?

a. Past employment and experience records

b. Social security numbers

c. Lie detector tests

d. Educational background

e. List of references

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relationship between employer and employee?

a. Change in payroll rate form

b. Employee history record

c. Hiring notice

d. Employee’s earnings record

e. None of the above

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tion, the amount of remuneration, the deductions, and the net amount

paid for each payroll period?

a. Employee history record

b. Payroll register

c. Change in payroll rate form

d. Reference inquiry form

e. None of the above

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summarize the data needed at the end of each payroll period?

a. Payroll register

b. Reference inquiry form

c. Change in payroll rate form

d. Employee history record

e. None of the above

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employee files?

a. Regular pay rate

b. Gender

c. Wages subject to tax for the calendar year

d. Health-care account withdrawals

e. None of the above