Test bank For Exam 1 Payroll and tax
accounting 7th Edition by Alan Dryden
CH1 ASSIGNMENT
Lupore Fabrics obtained a contract in Watts Mills, South Carolina, that involves the production
of materials for military uniforms, a project contracted with the federal government for
$2,800,000. What laws govern the wages Lupore Fabrics pays to its workers for this project? ( -
ANSDavis-Bacon ActCorrect
Walsh-Healey ActCorrect
FLSA-Fair Labor Standards Act
Martine Piccirillo works as the payroll clerk for Centinix, a security company that hires many
part-time and temporary workers who are paid hourly. What law governs the hiring or
documenting of these workers? - ANSFLSA
IRCA
Choose the correct definition for Consolidated Appropriations Act. - ANSProvided funding for
the E-Verify program.
Choose the correct definition for ADP and Paychex®. - ANSExamples of companies used for
outsourcing payroll processing.
Choose the correct definition for Davis-Bacon Act. - ANSGoverns accounting for firms with
federal government contracts in excess of $2,000.
MANUAL PAYROLL - ANSPayroll administration using a paper payroll register.
AUDITOR - ANSA person or group who examines a company's accounting records for
accuracy.
TIMECARD - ANSA record of the time worked during a period for an individual employee.
Jackson Wyman was dismissed from his employment at Precision Dynamics because of an
incident regarding his race. Mr. Wyman sued Precision Dynamics for $150,000 because of the
discrimination. Which of the following laws provides for monetary awards during discrimination
lawsuits? - ANSCIVIL RIGHT ACT OF 1991
, Ovenet Incorporated is a qualified private-sector company that provides health insurance to its
employees. The company is self-insured. Which of the following forms should the company
provide its employees to comply with the Affordable Care Act? - ANS1095-B
OUTSOURCED PAYROLL - ANSThe use of an external company to track time and benefits and
pay employees.
TIME COLLECTION - ANSThe process of gathering information about hours worked for one or
more employees.
Kevin Magnus is a payroll accountant for Mama Bear Trading Company. A coworker from the
packaging department contacts Kevin via electronic communication and requests to see all
employees' payroll records for a specific payroll date. What are options available for Kevin? -
ANS-The Privacy Act of 1974 would protect the individual's information from being disclosed.
-Email request should be subject to additional scrutiny.
Kalea Germain is a warehouse worker for a small grocery market. As she was moving some
merchandise, the loading dock door unexpectedly fell and injured her. How does OSHA apply to
Kalea for this type of injury? - ANS-Workers compensation insurance will provide for the
coverage of wage compensation for the employee and covered medical expenses should the
company's work environment, and not employee error, be found at fault.
-In this type of situation, there would be an OSHA inspection to ensure that the working
environment was not the cause of the injury.
-Another legal provision is that she may be protected under FMLA; she may have to take unpaid
leave if she does not have leave available, but her employment and medical benefits would be
guaranteed.
Libbi Alberighi and Flavia van Peij are friends who work for the same company. Libbi manages a
manufacturing department, and Flavia supervises the payroll clerks. Which ethical guidelines or
rules would these friends need to remember when discussing work? - ANS-Exercising personal
integrity to avoid any apparent conflicts of interest would also be appropriate for these
individuals.
-Non-disclosure of confidential information they have over the employees in their areas of
responsibility.
Katelijn Preston is a new manager at Resterra Incorporated. She is looking at using the E-Verify
process for new hires. What recommendations can you give her about the differences between
having an employee complete the I-9 and the E-Verify process? - ANS-I-9 is still necessary if
using E-Verify.
-E-Verify allows employers to use the Internet to verify if employees are eligible to work in the
United States.
Micah Sherman works in the payroll department at Radiance Windows. The employer has
determined that the payroll functions should be moved to a cloud-based platform that can
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