FLSA Fundamentals: Key Concepts and Regulations, Exams of Business Mathematics

A concise overview of key concepts related to the fair labor standards act (flsa) and other employment-related regulations. It covers topics such as minimum wage, overtime requirements, child labor laws, employee classification (exempt vs. Non-exempt), and tax withholding forms. The material is presented in a question-and-answer format, making it useful for quick review and self-assessment. It also touches on related topics such as the fmla, independent contractor status, and wage regulations, offering a broad understanding of employment law fundamentals. Useful for students and professionals in human resources, payroll, and business management.

Typology: Exams

2024/2025

Available from 05/24/2025

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FPC Paytrain Fundamentals Module 1
What is the federal wage and hour law also known as? correct answer The Fair Labor Standards Act
(FLSA)
What is the FLSA tip credit? correct answer $5.12 per hour
What is waiting to be engaged? correct answer Waiting to be engaged is not compensable time because
the employee is free to pursue personal business.
What is a nondiscretionary bonus? correct answer - A contractual or agreed-upon bonus or incentive
- Paid to nonexempt employees
- Included in the regular rate of pay in the week earned
What is Form I-9? correct answer Employment Eligibility Verification
- verifies an individual's identity and right to work in US
Child labor rules under age 14: correct answer - generally prohibited
- exceptions for minors working for parents, or...
- in some situations, actors, batboys or girls, and ballboys or girls
Child labor ages 14 and 15: correct answer - May only work in nonhazardous jobs
- 3 hours per day and 18 hours in a week when school is in session
- up to 8 hours a day and 40 hours per week when school isn't in session
What is engaged to be waiting? correct answer compensable time, because the employer requires the
employee to wait to begin work
Tipped employee's hourly rate correct answer no less than $2.13 per hour under the FLSA
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FPC Paytrain Fundamentals Module 1

What is the federal wage and hour law also known as? correct answer The Fair Labor Standards Act (FLSA) What is the FLSA tip credit? correct answer $5.12 per hour What is waiting to be engaged? correct answer Waiting to be engaged is not compensable time because the employee is free to pursue personal business. What is a nondiscretionary bonus? correct answer - A contractual or agreed-upon bonus or incentive

  • Paid to nonexempt employees
  • Included in the regular rate of pay in the week earned What is Form I-9? correct answer Employment Eligibility Verification
  • verifies an individual's identity and right to work in US Child labor rules under age 14: correct answer - generally prohibited
  • exceptions for minors working for parents, or...
  • in some situations, actors, batboys or girls, and ballboys or girls Child labor ages 14 and 15: correct answer - May only work in nonhazardous jobs
  • 3 hours per day and 18 hours in a week when school is in session
  • up to 8 hours a day and 40 hours per week when school isn't in session What is engaged to be waiting? correct answer compensable time, because the employer requires the employee to wait to begin work Tipped employee's hourly rate correct answer no less than $2.13 per hour under the FLSA

What is a workweek? correct answer - any seven 24 hour periods totaling 168 consecutive hours

  • employers set when a workweek begins
  • can be changed when a business need occurs What is the 8/80 Rule? correct answer A workweek exception for hospitals and nursing homes. Employers using this rule pay overtime for work over 8 hours a day OR 80 hours in a 14-day period (whichever favors the employee) What is the federal minimum wage? correct answer $7.25 per hour What is Form W-4P? correct answer Withholding Certificate for Pension or Annuity Payments
  • allows retirees to request the amount of federal income tax to withhold from pensions or annuity payments What is backup withholding? correct answer - 24% FITW on reportable non-payroll payments when TIN is not provided or organization is notified by the IRS
  • reported annually on Form 945 What varies in a fluctuating workweek? correct answer employee's hours vary while employee's salary remains constant What is SSNVS? correct answer Social Security Number Verification Service
  • SSA's system that allows employers to verify if employee's name and SSN match SSA's records Traits of an independent contractor correct answer - sets own hours
  • determines own sequence of work
  • works for multiple org's
  • self-employed
  • works by the job
  • employs assistants

What does an exempt W-4 mean? correct answer - employee will have no income tax withheld for the remainder of the year

  • exempt w-4s expire on February 15th of the year after they are submitted Exempt employees are determined by: correct answer primary job duties and weekly salary Who uses economic realities factors? correct answer The DOL uses the economic realities factors to determine an employer-employee relationship where the worker is dependent on the employer FMLA leave guarantees correct answer 12 weeks of unpaid leave in a 12 month period to an eligible employee IRS penalties for intentional misclassification of an employee correct answer 100% of FIT, social security, and Medicare taxes (both employee and employer share) traits of an employee include: correct answer - has taxes withheld from wages
  • reimbursed for expenses
  • complies with employer's instructions about when, where, and how to work
  • work is done personally
  • performs services under company's name child labor under age 18: correct answer restricts minors under 18 from working in a job that has been declared hazardous by the DOL When is an amended W-4 implemented? correct answer with the first payroll no later than 30 days after the form is submitted Types of exempt employees: correct answer - administrative
  • executive
  • professional
  • outside sales What is the regular rate of pay? correct answer used to calculate a nonexempt employee's overtime premium When is Overnight Travel time worked? correct answer When on scheduled and non-scheduled work days, if the travel times coincide with the employee's regular working hours Excluded from RROP correct answer - gifts
  • reimbursed expenses
  • paid hours not worked
  • stock options
  • discretionary bonuses
  • overtime premiums in excess of FLSA requirements What is Form SS-8? correct answer Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding
  • filed with IRS to obtain determination of a worker's status Exempt executive employee's primary duties correct answer - management of the business
  • direct 2 or more FTE employees
  • authority or recommendation to hire and fire Exempt professional employee's duties correct answer - learned or creative professional
  • learned professionals' work requires advanced knowledge
  • creative professionals' work requires invention or talent Form I-9 can be completed by correct answer using a paper or electronic form