Dustin Taylor BE166 Payroll Accounting Chapter 1 Homework Questions for review: 1-20 1.

The Fair Labor Standards Act set the minimum wage rate, and the current minimum wage is $7.25 per hour. 2. Day and time of day when workweek begins Regular hourly rate of pay Basis of wage payments Hours worked each day Hours worked each week Daily or weekly straight-time pay Amount and nature of exempt pay Weekly overtime pay Total additions to or deductions from wages Total remuneration for payroll period Date of payment Payroll period 3. Both the employee and the employer pay the social security taxes levied by FICA. 4. FUTA taxes are used to pay state and federal administration expenses of the unemployment program. SUTA taxes are used to pay unemployment benefits. 5. Discriminating in hiring, firing, promoting, compensating or in any other condition of employment on the basis of race, color, religion, gender, or national origin. Unions are prohibited from excluding or segregating their members based on race, color, religion, gender, or national origin. Employment agencies may not refer or refuse to refer applicants for employment on the basis of race, color, religion, gender, or national origin. 6. To prohibit employers, employment agencies, and labor unions from discriminating on the basis of age in their employment practices. 7. Executives 65 or older who have held high policy making positions during the previous 2 years, along with being entitled to $44,000 or more in retirement benefits can be forcibly retired.

8. Laborers for contractors or subcontractors on federal government contracts for construction, alteration, or repair of public buildings or works. The minimum contract dollar amount is $10,000. 9. OSHA sets specific occupational and health standards for employers. It requires that record be kept of work-related injuries, illnesses, and deaths. 10. Up to 12 weeks of unpaid leave. 11. ERISA was designed primarily to ensure that workers covered by private pension plans receive benefits from those plans in accordance with their credited years of service with their employer. 12. Vesting conveys to employees the right to share in a retirement fund in the event they are terminated before the normal retirement age. The vesting process is linked to the number of years needed for workers to earn equity in their retirement plans and to become entitled to full or partial benefits at some future date if they leave the company before retirement. Once vested, a worker has the right to receive a pension at retirement age, based on years of covered service, even though the worker may not be working for the firm at that time. 13. The administrator must furnish a statement, not more than once in a 12-month period, of the total benefits accrued and accrued benefits that are vested, if any, or the earliest date on which accrued benefits will become vested. 14. Receive request for new employee Examine applicants Interview applicants Administer tests Check references Select and notify successful applicant Send information to payroll department Prepare personnel file 15. Personal information including the name, address, phone number, and social security number of the applicant Educational background Employment and experience record Type of employment desired References 16. Both Acts make certain that all aspects of the prehire inquiries are free of discrimination on the basis of race, color, religion, gender, national origin, and age.

17. When an employer seeks a report from a consumer reporting agency, the employer must notify the applicant or employee in writing that such a report is being sought. If employment is denied because of the facts on the investigative report, the employer must inform the applicant of this fact. In addition, the name of the consumer reporting agency must be furnished to the applicant. 18. Record hours worked or units produced Compute gross pay, deductions, and net pay Complete payroll register Maintain payroll deduction records Update employees' earnings records Prepare paychecks Record payroll in accounting books Prepare various payroll reports 19. Payroll register & the employees' earnings records 20. The employee's earnings record provides the information needed to prepare periodic reports required by the withholding tax laws, the FICA tax law. And state unemployment or disability laws. Employers also use the employee's earnings record in preparing W-2's and Wage and Tax Statements. Question For Discussion: 5 5. a. Illegal This question could be used to reveal the national origin, race, religion, or color of the applicant. b. Illegal - This question could be used to reveal the national origin, race, religion, or color of the applicant. c. Legal d. Legal. As long as they don't ask how they know those languages. That could be used to reveal the national origin, race, religion, or color of the applicant. Case Problem 1 Even though it was the employer's error, Ken didn't earn the paychecks legally. The company has the right to pursue legal proceedings to get reimbursed from Ken. Depending on how muck Ken earns, the cost of going to court may be more than what it is worth to get the money back. They should cut their losses and make sure this interdepartmental issue doesn't happen again.