Question 1

As a general rule, to which group of employees is unemployment insurance most often

provided?
Laid-off employees

Employees who quit

Terminated employees

Commission-only employees

Question 2
Tally’s Tanks is subject to FMLA. 
Which statement is not true about protected leave under the FMLA regulation? 
Employees can opt for a reduced workweek rather than a period of leave

Employees can take leave to care for an ill parent, spouse, or child

Employees must have worked at least 12 months to qualify

Employees can take unpaid time off work for the bereavement of a family member

Question 3
Which statement is true regarding termination in an at-will state?
An employer cannot terminate an employee at any time for any reason

An employer can terminate for excessive absence due to pregnancy

An employer can terminate for being aggressive in the workplace

An employer cannot terminate an employee due to their inability to perform required

physical tasks

Question 4
Dexter’s Dental has terminated a remote employee. 
Which state laws should be verified to ensure termination compliance?
The state where the employee resides

The state where the employer is based

The state where the employee regularly performs the work

The state the employee worked before they began working from home

Question 5
Which 2 options are acceptable documents of proof for Form I-9?
U.S. passport

Driver’s license

Social Security Account Number card and birth certificate

Driver’s license and Social Security Account Number card

 Native American tribal document and Voter’s registration card

Question 6
Which 2 documents are required to be collected for a new employee?
Form I-9

Form W-9

Form W-4

Direct Deposit form

Form W-2

Question 7
Which information is not required to be maintained in an employee’s permanent file?
Social Security number

Birth date

Rate of pay

Marital status

Question 8
With regard to employees’ reported tips, what must the employer do?
Report tips as wages on Form W-2 and withhold and only remit the employees’
portion of Social Security and Medicare taxes on tips

Report taxes on tips separately when making an employment tax deposit

 Report tips as wages on Form W-2 and remit the employer and employee portion of
Social Security and Medicare taxes

Report and remit the employer portion of Social Security and Medicare taxes on the
portion of cash tips above the federal minimum wage

Question 9
Belmore Technologies has elected to use the Section 7(i) overtime exemption for
commissioned employees.
What 3 conditions must be met?
The employee’s regular rate of pay must exceed one and one-third the applicable
minimum wage for every hour worked in a workweek in which overtime hours are
worked

More than half the employee’s total earnings in a representative period must
consist of commissions

More than one-third of the employee’s total earnings in a representative period

must consist of commissions

The employee must be employed by a retail or service establishment

The employee’s regular rate of pay must exceed one and one-half times the
applicable minimum wage for every hour worked in a workweek in which
overtime hours are worked

The employee can be employed by any type of establishment

Question 10
Peter has been an employee of his S-Corporation for 10 years. Peter plans to take
$225,000 out of the business next year, which includes $75,000 in distributions.
What amount will be nontaxable to Peter?
 $50,000

$75,000

$150,000

$225,000

Question 11
Which scenario does not qualify as a de minimis fringe benefit?
Occasional party or picnic for employees

Occasional dinner stipend for working overtime

Traditional holiday gifts

Legal services worth less than $500

Question 12
How many states do not have a state income tax?
5
 7

15

Question 13
Roots Beauty Supply has hired a new employee. Which 2 options are employer-paid taxes?
Federal & State income taxes

Federal & State Unemployment

Additional Medicare tax

Social Security & Medicare

Local income taxes

Question 14
What is the tax rate for the Federal Unemployment Tax Act (FUTA)?
1.45%

6%

0.09%

6.2%
 Review Answers
Take a minute to review your answers before you turn in your work.
Once you submit this section, you won’t be able to change your answers.

 Q1
 As a general rule, to which group of employees is unemployment insurance most
often provided?

Edit answer

Your answer:
Laid-off employees

 Q2
 Which statement is not true about protected leave under the FMLA regulation? 

Edit answer

Your answer:
Employees can opt for a reduced workweek rather than a period of leave

 Q3
 Which statement is true regarding termination in an at-will state?

Edit answer

Your answer:
An employer can terminate for being aggressive in the workplace

 Q4
 Which state laws should be verified to ensure termination compliance?

Edit answer

Your answer:
The state where the employee regularly performs the work

 Q5
 Which 2 options are acceptable documents of proof for Form I-9?

Edit answer
 Your answer:
U.S. passport
Driver’s license and Social Security Account Number card

 Q6
 Which 2 documents are required to be collected for a new employee?

Edit answer

Your answer:
Form I-9
Form W-4

 Q7
 Which information is not required to be maintained in an employee’s permanent
file?

Edit answer

Your answer:
Marital status

 Q8
 With regard to employees’ reported tips, what must the employer do?

Edit answer

Your answer:
Report tips as wages on Form W-2 and remit the employer and employee portion of
Social Security and Medicare taxes

 Q9
 What 3 conditions must be met?

Edit answer

Your answer:
More than half the employee’s total earnings in a representative period must consist of
commissions
The employee must be employed by a retail or service establishment
The employee’s regular rate of pay must exceed one and one-half times the applicable
minimum wage for every hour worked in a workweek in which overtime hours are
worked
 Q10
 What amount will be nontaxable to Peter?

Edit answer

Your answer:
$150,000

 Q11
 Which scenario does not qualify as a de minimis fringe benefit?

Edit answer

Your answer:
Legal services worth less than $500

 Q12
 How many states do not have a state income tax?

Edit answer

Your answer:
9

 Q13
 Roots Beauty Supply has hired a new employee. Which 2 options are employer-
paid taxes?

Edit answer

Your answer:
Federal & State Unemployment
Social Security & Medicare

 Q14
 What is the tax rate for the Federal Unemployment Tax Act (FUTA)?

Edit answer

Your answer:
6%
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