Terry Masonry is a small company that employs both part and full-time employees and exclusively uses a manual payroll system. Employees can elect to purchase health insurance on their own using employer compensation or can choose the company's no cost health insurance. The company recently hired a few on-call employees. The on-call employees determine where they work, as well as how many hours they work. A year ago, the company was accused of unequal pay practices.

1. Using the Fair Labor Standard Act (FLSA) as a guide, what should the company consider concerning working hours?

2. Joe Smith was terminated from Terry Masonry and while employed he choose to receive employer compensation to purchase his own health insurance. In this situation, how should COBRA be administered?

3. Terry Masonry's Chief Financial Officer (CFO) wants to update the payroll system. The company owner requests that the CFO conduct research and provide a report with available options. If you were the CFO, what would you report to the owner?

4. The company's accounting manager is having trouble determining the employment status for oncall employees? What criteria should the accounting manager to use to make this determination? Please provide a minimum of two criteria.