1. Backup withholding tax applies:

A. to statutory employees

B. when an independent contractor fails to submit a TIN

C. to common law employees

D. when a new employee does not submit a Form W-4

2. Which of the following workers is subject to FICA, but not FITW?

A. a common-law employee

B. a statutory nonemployee

C. a statutory employee

D. an independent contractor

3. Which of the following is responsible for paying both the employee and employer portions of FICA tax?

A. an independent contractor

B. a common-law employee

C. a leased employee

D. a statutory employee

4. The frequency and method of distributing the payroll is regulated by:

A. the Internal Revenue Service

B. state wage hour departments

C. the U.S. Department of Labor, Wage and Hour Division

D. by employeeemployer negotiation

5. If the state minimum wage is higher or lower than the federal one, the employer must use:

A. the state minimum wage

B. the federal minimum wage because federal law is senior to state law

C. the minimum wage most favorable to the employer

D. the minimum wage most favorable to the employee

6. What to do with the final paycheck never claimed by a terminated employee is covered by:

A. state wage-hour law

B. federal wage-hour law

C. the enterprise coverage test

D. escheat law

7. A dry-cleaning establishment that began operations in 2004 must abide by federal wage-hour law if gross annual sales are:

A. $362,500 or more

B. $250,000 or more

C. $0 or more

D. $500,000 or more

8. An employee paid $8 an hour works 50 hours one workweek. How much premium pay is due the employee under federal law?

A. $160

B. $80

C. $120

D. $40

9. Suzy is paid $576 weekly for a 32-hour workweek. If she works 37 hours in the week, what is her total pay for the week under federal law?

A. $445

B. $400

C. $666

D. $576

10. Joeys monthly salary is $2,000. If Joey works a 40-hour workweek, what is his hourly rate under federal law?

A. $11.54

B. $10.75

C. $13.63

D. $12.50