INSTANT DOWNLOAD WITH ANSWERS
Payroll Accounting 2016 26th Edition by Bieg – Test Bank
1. Under the FLSA enterprise coverage test, hospitals and nursing homes are only covered if their annual charges for services are at least $500,000.

2. Institutions of higher education are extended coverage under FLSA without regard to their annual sales volume.

3. If a business does not meet the enterprise coverage test, none of its workers qualify for individual employee coverage.

4. Domestics are excluded from coverage under the FLSA individual employee coverage.

5. A discretionary bonus is included in an employee’s regular rate of pay.

6. All interns in the forprofit sector are exempt from the minimum wage and overtime requirements of the FLSA.

7. Employees paid biweekly receive their remuneration every two weeks.

8. In January 2016, workers who receive the minimum hourly wage are paid $6.10 an hour.

9. A retail shop may employ a fulltime student at $5.00 per hour.

10. A college may employ its own fulltime students at 85 percent of the minimum wage.

11. All major cities have enacted ordinances establishing a socalled “living wage” at $10.25 per hour.

12. The FLSA defines a tipped employee as one who regularly receives tips of more than $20 a month.

13. An employer can credit up to $5.12 of a tipped employee’s minimum wage as coming from the tips received by that employee.

14. The FLSA requires that workers receive overtime pay for all hours worked in excess of 40 in a workweek.

15. The FLSA requires that workers receive overtime pay of twice the employees’ regular hourly rate for hours worked on Sunday.

16. Employees who are receiving remedial education may work up to 10 hours overtime each week without receiving overtime pay.

17. Public safety employees of a state can be granted compensatory time off in lieu of overtime compensation.

18. All employers can grant compensatory time off to employees in place of overtime pay.

19. Exempt professional employees are exempt from all provisions of the FLSA—minimum wages, overtime pay, and equal pay.

20. Employees paid by the hour without a guarantee of a weekly minimum salary do not qualify for the salary test for whitecollar workers.

21. One of the tests to be met for the whitecollar exemption for an executive is to be paid a salary of at least $455 per week.

22. The Equal Pay Act stipulates that there cannot be any wage differentials between the sexes.

23. Under no conditions may children under age 16 be employed in food service establishments.

24. The FLSA sets no limits upon the number of hours that a 15yearold person may work so long as the overtime pay provisions are met.

25. The FLSA requires that employees be given the day off on all Monday holidays or be paid time and onehalf for those Mondays.

26. When employees spend time changing clothes on the employer’s premises, this time must be counted as part of their principal activities for which they are always fully compensated.

27. Provided employees can use the oncall time for their own purposes, this time is not compensable.

28. The FLSA requires that employees be given at least two 15minute rest periods each workday.

29. Bona fide meal periods when the employee is completely relieved from duty are not considered working time.

30. “Engaged to wait” and “waiting to be engaged” are both considered work time.

31. Hourly employees who take work home without the permission of the employer do not have to be paid for the work done at home.

32. Employers may adopt the practice of recording an employee’s starting and stopping time to the nearest quarter of an hour.

33. The FLSA contains detailed specifications of the methods that employers must follow in keeping time records.

34. Under the continental system of recording time, 9:00 a.m. is recorded as 900 while 9:00 p.m. is recorded as 2100.

35. In converting semimonthly wage rates to hourly rates, divide the semimonthly rate by 4 to arrive at the weekly rate, then divide this rate by the standard number of hours.

36. Under the piecerate system, workers are paid according to their output.

37. Although commissions are considered payments for hours worked, in all cases they are excluded when determining the regular hourly rate.

38. To calculate the overtime pay rate for a commissioned worker, divide the total commission by the hours worked, and then take onehalf of the resulting rate of pay.

39. Nondiscretionary bonuses are part of the determination of the regular rate of pay.

40. Payments made to a bona fide profitsharing plan that meets the standards set by the secretary of labor’s regulations are not deemed wages in determining the regular rate of pay.

41. Under enterprise coverage, all employees of a business are covered by the FLSA if the organization is:

42. Under individual employee coverage, the worker is covered by the FLSA if:

43. Under the FLSA, regular rate of pay does not include:

44. In January 2016, the minimum hourly wage was:

45. The tips received by a tipped employee are less than $5.12 of the minimum hourly tip credit rate. The maximum permissible tip credit is:

46. Under the FLSA, overtime pay is required for:

47. Workers exempt from all of the FLSA requirements include:

48. Under the Equal Pay Act:

49. If an employer is unable to obtain a certificate of age or a work permit for a minor employee, the employer may rely upon what document as evidence of age?

50. Which of the following is not required by the FLSA?

51. Those tasks that employees must perform and which include any work of consequence performed for the employer are known as:

52. Rest periods and coffee breaks may be required by all of the following except:

53. Training sessions are counted as working time when the following condition is met:

54. The Wage and Hour Division allows the practice of recording an employee’s starting and stopping time to:

55. The FLSA requires that:

56. Under the continental system of recording time, 9:20 p.m. is recorded as:

57. If an employee works two jobs at two different wage rates for the same employer during the same pay week, any overtime pay must be calculated by using an overtime hourly rate of:

58. Employers may pay nonexempt employees who work fluctuating schedules a fixed salary. In these cases, the extra pay is:

59. To determine a pieceworker’s regular hourly rate for one week:

60. A stated percentage of revenue paid an employee who transacts a piece of business or performs a service is called:

Instruction 21 Unless instructed otherwise, compute hourly rate and overtime rates as follows:
Also, use the minimum hourly wage of $7.25 in solving these problems and all that follow. 
61. Refer to Instruction 21. Abel works a 37hour week at $10.75 an hour. Overtime hours are paid at 1 times the regular rate.

62. Refer to Instruction 21. Jack Kenston works a 40hour week with overtime paid at 1 times his regular rate of pay of $14.88. This week he worked 42 hours, which resulted in a gross pay of __________.

63. Refer to Instruction 21. Carolyn Clark, a fulltime student at Atlanta State University, works at the Barclay Dress Shop. In order not to violate the FSLA, the least salary that Barclay could pay Clark for her 28hour workweek is __________.

64. Refer to Instruction 21. Bakker is paid an hourly rate of $10.65. For 130 minutes spent on a certain job, Bakker is paid __________.

65. Refer to Instruction 21. Annette Henri is paid an hourly wage of $10.90 for a 32hour work week of 4 days, 8 hours daily. For any work on the fifth day and on Saturdays, she is paid one and onehalf times her regular hourly rate. During a certain week, in addition to her regular 32 hours, Henri worked 6 hours on the fifth day and 5 hours on Saturday. For this work week, Henri’s total earnings are __________.

66. Refer to Instruction 21. Jose Cruz earns $2,275 each month and works 37.5 hours each week. His employer pays him overtime (for hours beyond 37.5) and uses the overtime premium approach. Cruz’s overtime premium hourly rate is __________.

67. Refer to Instruction 21. Every two weeks, Linda Corson is paid $650. Corson works a 32hour week. For overtime, she receives extra pay at the regular hourly rate up to 40 hours. For any hours beyond 40 during the workweek, she receives time and onehalf. During one biweekly pay period, she worked 17 hours overtime. Only 3 hours of the overtime were beyond 40 hours in any one week. Corson’s gross earnings for the biweekly pay period are __________.

68. Refer to Instruction 21. Carla Maloney is a waitress who regularly receives $80 each week in tips and works 40 hours each week. The minimum gross weekly pay, excluding tips, that the restaurant could pay Maloney without violating the FLSA is __________.

69. Refer to Instruction 21. Elder is paid a monthly salary of $2,250. Overtime is paid for hours beyond 40 in each workweek. One week, Elder works 7 hours overtime. Elder’s gross pay for the week is __________.

70. Refer to Instruction 21. Kevin Kurtz is a newly hired exempt employee who earns an annual salary of $67,600. Since he started work on Thursday (fiveday week ends on Friday), his pay for the first week would be __________.

71. Refer to Instruction 21. Fall is paid a biweekly salary of $937.50. Overtime is paid for hours beyond 40 in each workweek. One week, Fall works 3 hours overtime. Fall’s pay for this biweekly pay period is __________.

72. Refer to Instruction 21. Gates is paid a semimonthly salary of $900.00. Overtime is paid for hours beyond 40 in
each workweek. One week, Gates works hours overtime. Gates’ pay for this semimonthly pay period is _____.

73. Refer to Instruction 21. Stacy Forvour is a salaried employee who works fluctuating workweeks. She is paid $680 per workweek. This week, she worked 46 hours. Forvour’s total gross pay if her employer uses the special halfrate (based on total hours worked) for overtime pay is __________.

74. Refer to Instruction 21. Casey Klemons’ agreement (BELO plan) with his employer provides for a pay rate of $16.50 per hour with a maximum of 50 hour. How much would Klemons be paid for a week in which he worked 46 hours?

75. Refer to Instruction 21. Hall receives 18.5 cents for every unit produced. Hall produces 575 units in an 8hour workday. Hall’s daily wages are __________.

76. Refer to Instruction 21. Ides receives 16 cents for every unit produced. Ides produces 2,976 pieces in a 43hour
workweek. For overtime, Ides is paid a sum equal to onehalf the regular hourly pay rate multiplied by the number of overtime hours. Ides’ total piecework and overtime earnings are __________.

77. Refer to Instruction 21. Gorman is paid $10.50 per hour for a 35hour workweek. This past week, he worked an
extra 10 hours on a job at a pay rate of $13.00 per hour. If he is only paid overtime for hours over 40 and the employer uses the average rate method, his total earnings for the 45 hours of work was __________.

78. Refer to Instruction 21. Kenneth Anderson works two separate jobs for Mesa Company. During the week,
Job A consisted of 38 hours at $20 per hour; Job B involved 15 hours at $14 per hour. If Mesa uses the average rate basis for calculating overtime, Anderson’s pay for that week is __________.

79. Refer to Instruction 21. Kerr receives an annual $25,700 base salary for working the territory in Arizona. A quota of $900,000 in sales has been set for that state. Kerr receives an 8% commission on all sales in excess of $900,000. This year, the sales are $965,000. The total earnings due Kerr this year are __________.

80. Refer to Instruction 21. Kelli England earns $12.30 per hour and has earned a production bonus this week of
$37.10. If England worked 44 hours this week, her gross pay is __________.
