Reg Employment From Cpafree

Front 1

Which of the following is NOT among the rules relating to, or the requirements imposed by FICA (Federal Insurance Contributions Act)?


A FICA taxes paid by employers are deductible expenses for income tax purposes.
B Contributions may be made to an employee’s pension plan in lieu of making FICA contributions.
C The frequency of FICA deposits depends on the amount of an employer’s payroll.
D Employers must furnish employees with written statements of wages paid and FICA contributions withheld each year.

Back 1

The correct answer was B.

FICA taxes paid by employers are deductible expenses for income tax purposes, the frequency of FICA deposits depends on the amount of an employer’s payroll, and employers must furnish employees with written statements of wages paid and FICA contributions withheld each calendar year. However, contributions may not be made to an employee’s pension plan in lieu of making FICA contributions.

Front 2

Bowies Banquet House Restaurant and Lodge employs a staff in excess of 60 full and part-time employees, including several dozen waiters, waitresses and hostesses. On February 1, management of Bowies Banquet House, having determined that survival of the eating establishment depended upon implementing a “youthful image,” gave the following notice to its employees: “Termination: To ensure survival and future viability of Bowies Banquet House, personnel who interact directly with the public (primarily wait-staff) will be evaluated and those whose appearance is age 30 or older will be asked to resign. Those resigning will receive a $1,000 departing bonus.” If Bowies Banquet House follows through on this strategy, it will be in violation of


A the Age Discrimination in Employment Act.
B most state workers compensation laws.
C the Civil Servants Act.
D no federal law, though state laws would have to be consulted individually.

Back 2

The correct answer was A.

The Age Discrimination in Employment Act of 1967 (ADEA) protects individuals who are 40 years of age or older from employment discrimination based on age. The ADEA's protections apply to both employees and job applicants. Under the ADEA, it is unlawful to discriminate against a person because of his/her age with respect to any term, condition, or privilege of employment -- including, but not limited to, hiring, firing, promotion, layoff, compensation, benefits, job assignments, and training. It is also unlawful to retaliate against an individual for opposing employment practices that discriminate based on age or for filing an age discrimination charge, testifying, or participating in any way in an investigation, proceeding, or litigation under the ADEA. The ADEA applies to employers with 20 or more employees, including state and local governments. It also applies to employment agencies and to labor organizations, as well as to the federal government.

Front 3

Under the Americans with Disabilities Act (ADA), an employer is required to make an accommodation to the known disability of an employee if it would not impose an "undue hardship" on the operation of the employer's business. Which of the following statements is INCORRECT regarding the ADA?


A “Undue hardship” is defined as an action requiring significant difficulty or expense when considered in light of factors such as an employer's size, financial resources and the nature and structure of its operation.
B A qualified employee with a disability is an individual who, with or without reasonable accommodation, can perform the essential functions of the job in question.
C Reasonable accommodation may include making existing facilities used by employees readily accessible to and usable by persons with disabilities.
D An employer may be required to provide personal use items such as glasses or hearing aids.

Back 3

The correct answer was D.

An employer is required to make an accommodation to the known disability of a qualified applicant or employee if it would not impose an "undue hardship" on the operation of the employer's business. Undue hardship is defined as an action requiring significant difficulty or expense when considered in light of factors such as an employer's size, financial resources and the nature and structure of its operation. An employer is not required to lower quality or production standards to make an accommodation, nor is an employer obligated to provide personal use items such as glasses or hearing aids.

Front 4

The Employee Retirement Income Security Act of 1974 (ERISA) is a federal law that sets minimum standards for most voluntarily established pension and health plans in the private sector. ERISA


A requires plans to provide participants with plan information, including important information about plan features and funding.
B does NOT govern those who manage and control plan assets.
C makes optional an appeals process for participants.
D has been amended by the Consolidated Omnibus Budget Reconciliation Act (COBRA), which requires employers to provide workers and their families with health insurance for a limited time after the loss of a job.

Back 4

The correct answer was A.

The Employee Retirement Income Security Act of 1974 (ERISA) is a federal law that sets minimum standards for most voluntarily established pension and health plans in private industry. ERISA requires plans to provide participants with plan information including important information about plan features and funding; provides fiduciary responsibilities for those who manage and control plan assets; and, requires plans to establish a grievance and appeals process for participants to get benefits from their plans. There have been a number of amendments to ERISA, including the Consolidated Omnibus Budget Reconciliation Act (COBRA), which provides some workers and their families with the right to continue their health coverage (at their own expense) for a limited time after certain events, such as the loss of a job.

Front 5

The Employee Retirement Income Security Act of 1974 (ERISA) covers most private sector, voluntary employee benefit plans, including "pension plans" and "welfare plans.” Which of the following statements concerning ERISA is INCORRECT?


A ERISA sets uniform minimum standards to assure that employee benefit plans are established and maintained in a fair and financially sound manner.
B ERISA is enforced by the Department of Labor's Pension and Welfare Benefits Administration (PWBA) and by the Internal Revenue Service (IRS).
C ERISA imposes minimal obligations on persons who exercise discretionary authority or control over management of a plan or disposition of its assets.
D ERISA requires persons and who control plan funds to manage plans for the exclusive benefit of participants and beneficiaries, and to provide certain documents to assure compliance with the law.

Back 5

The correct answer was C.

The Employee Retirement Income Security Act of 1974 (ERISA) covers most private sector, voluntary employee benefit plans, including "pension plans" and "welfare plans.” Pension plans provide retirement income. Welfare plans provide health benefits, disability benefits, and death benefits, as well as other benefits and services. ERISA imposes fiduciary obligations on persons who exercise discretionary authority or control over management of a plan. Fiduciaries are required, among other things, to discharge their duties solely in the interest of plan participants and beneficiaries and for the exclusive purpose of providing benefits and defraying reasonable expenses of administering the plan.

Front 6

Under the Family Medical Leave Act (FLMA), which of the following is an INCORRECT statement?


A A husband and wife who are employed with the same company are only entitled to a combined total of 12 weeks for the birth of a child, when adopting a child, or to care for a parent with a serious health condition.
B An “eligible” employee allowed leave under the FMLA is an employee that has been employed with a company for at least 1,250 hours during a 12 month period prior to the start of the leave.
C An employer may NOT ask the employee to provide a medical certification from a health care provider to substantiates the need to use FMLA.
D An employee can ask to use FMLA to care for a family member, for their own physical/mental health care, and after the birth or adoption of a child.

Back 6

The correct answer was C.

The Family Medical Leave Act applies, in general, to employers having at least 50 employees. All the above statements regarding the Family Medical Leave Act are correct except the statement contained in answer C. An employer is permitted to ask the employee to provide a medical certification from a health care provider to substantiates the need to use FMLA.

Front 7

Hardy Construction Co. signed a contract with Vasser Bros. to replace a roof on a commercial building which Vasser Bros. had recently purchased. Peters, an employee of Hardy Construction Co. who worked on the demolition of the roof of the building, did not use fall protection gear while replacing the pieces of plywood which had deteriorated. Under the Occupational Safety Health Act


A Hardy Construction Co. is required to provide Peters a place of employment which is free from recognized hazards that would be likely to cause death or serious physical harm to Peters or other employees.
B Hardy Construction Co. is required to permit OSHA agents to enter the construction site without a court order.
C Hardy Construction Co. must only keep records of safety violations when directed in writing by OSHA to do so.
D a representative of Hardy Construction Co. is generally not permitted to accompany OSHA representative during a physical inspection of any workplace.

Back 7

The correct answer was A.

The Occupational Safety Health Act (OSHA) requires employers to: provide a workplace that is free from recognized hazards; and, to keep records of accidents and to report serious accidents to OSHA. OSHA permits employers to accompany OSHA inspectors during job site inspections, and allows employers to insist upon a search warrant (issued only for probable cause) before OSHA inspectors come onto the business premises. Business premise inspections are, however, typically permitted by employers without a court order.

Front 8

The four basic programs of the Social Security Act are


A unemployment insurance, workers compensation, survivors and disability insurance, and old age benefits.
B unemployment insurance, hospital insurance (Medicare), survivors and disability insurance, and old age benefits.
C unemployment insurance, hospital insurance (Medicare), survivors and disability insurance, and Medicaid.
D Food Stamps, hospital insurance (Medicare), survivors and disability insurance, and old age benefits.

Back 8

The correct answer was B.

The four basic programs of the Social Security Act are unemployment insurance, hospital insurance (Medicare), survivors and disability insurance, and old age benefits.

Front 9

Micah, an employee of Glidewell, was injured while delivering a sample to a prospective customer of her employer. The injury occurred when Faulk ran a stop sign and collided with Micah’s vehicle. Glidewell’s employees are covered by a standard workers compensation policy. Which is correct?


A If Micah has auto insurance which cover’s the medical care for her injuries, no payments will be required from the workers compensation carrier.
B If Micah has health insurance which cover’s the medical care for her injuries, no payments will be required from the workers compensation carrier.
C Micah will be entitled to recover for her pain and suffering from the workers compensation carrier.
D Faulk will be liable for Micah’s lost wages.

Back 9

The correct answer was D.

Since Micah was injured in the scope of her employment with Glidewell, her medical bills and most of her lost wages will be paid by Glidewell’s workers compensation carrier. Since Faulk was at fault, Faulk will be liable for damages sustained by Micah, including lost wages. Micah can also recover for her pain and suffereing from Faulk, but not from the workers compensation carrier. If Micah has auto insurance or health insurance which cover the medical care for her injuries, she will have multiple sorces of possible recovery.

Front 10

Cory, a long time employee of Rusch Marketing Corp., suffered a back injury in an automobile accident. The injury has left Cory unable to work in any capacity for the foreseeable future. If Cory seeks compensation for her injury under workers compensation laws, she will


A not prevail if her injury was sustained on the way to work.
B not prevail if her injury was caused by a negligent third party while Cory was making a delivery for her employer.
C not prevail if Rusch Marketing can prove that Cory was negligent and was entirely to blame for the accident which caused her injury.
D not prevail if Rusch Marketing Group does not have an insurance policy which provides workers compensation coverage.

Back 10

The correct answer was A.

An employee who is injured in connection with his/her employment, other that going to and from work, is entitled to prompt compensation for his/her injuries. Workers compensation benefits will be awarded regardless whether the employee, Cory, was negligent. If a third party was negligent, Cory will have rights to both workers compensation recovery as well as a personal injury claim against the third party, but cannot obtain double recovery. (I.e., the workers compensation carrier may be entitled to reimbursement if Cory prevails against a negligent third party.)

Front 11

Heaton employed Wire-to-Wire, LLC, to install a new telephone system in its headquarters. Jackson, a long time Wire-to-Wire, LLC, employee was seriously injured when he carelessly connected a phone wire to a live electrical wire. Jackson, who had ignored company and local county safety procedures by failing to conduct a standard electrical check, temporarily lost use of one of his fingers as a result of the accident. Under state Workers Compensation provisions, Jackson


A is precluded from recovering lost wages if he is proven to have been negligent.
B will, in addition to recovering lost wages and medical bills relating to his injury, be awarded a sum of money for his pain and suffering.
C will only recover if the injury to his finger is determined to be permanent.
D can claim lost wages, but this portion of the claim will be limited to two-thirds of his regular wages.

Back 11

The correct answer was D.

Negligence is not a bar to recovery for an employee injured in the course of employment. Workers Compensation does not compensate for pain and suffering but does pay for both temporary and permanent injuries. The lost wage portion of workers compensation amounts to 2/3 of regular pay, for up to 500 weeks.

Front 12

Every state has enacted workers compensation laws which provide for prompt compensation for employees who are injured on the job. The regulations vary slightly from state to state, but every state includes provisions which


A permit a worker to recover for injuries, even if the worker was negligent.
B require a person to be employed at least six months to be eligible for benefits.
C mandate that injured employees give up any right to bring separate personal injury suits for their injuries.
D require the employee prove at least slight negligence on the part of the employer in order to recover.

Back 12

The correct answer was A.

A hallmark of worker compensation laws is that employees are compensated for their injuries regardless whether the employee was negligent, and even if there has been no negligence on the part of the employer, fellow employees or third parties. However, recovery of workers compensation benefits does not prevent the injured employee from also recovering from third party wrongdoers (if there are any).

Front 13

With respect to the imposition of self-employment taxes and social security taxes, which of the following statements is/are correct? I. In a C Corporation, social security taxes are imposed on wages of employee-owners, but no self-employment tax is imposed on distributions. II. In a partnership, earnings are generally subject to self-employment taxes, except for earnings distributed for limited partnership interests.e


A I only is correct.
B II only is correct.
C Both I and II are correct.
D Neither I nor II is correct.

Back 13

The correct answer was C.

In a C Corporation, social security taxes are imposed on wages of employee-owners, but no self-employment tax is imposed on distributions. In a partnership, earnings are generally subject to self-employment taxes, except for earnings distributed for limited partnership interests. In a limited liability company, earnings are generally subject to self-employment taxes, except for earnings from passive investment interests. In S Corporations, social security taxes are imposed on wages of employee-owners, but no self-employment tax is imposed on distributions (as long as reasonable wages are paid).

Front 14

Companies that employ workers associated with a union generally operate in one of several ways. In some states, right-to-work laws mandate an open shop. An open shop:


A employs only people who are already union members.
B employs union and nonunion workers, but sets a time within which new employees must join the union.
C does not discriminate based on union membership in employing or retaining workers.
D requires nonunion workers to pay a fee to the union for its services in negotiating contracts benefit all employees.

Back 14

The correct answer was C.

An open shop does not discriminate based on union membership in employing or keeping workers. Where a union is active, the open shop allows workers to be employed who do not contribute to a union or the collective bargaining process. A closed shop employs only people who are already union members. A union shop employs both union and nonunion workers, but sets a time limit within which new employees must join the union. An agency shop requires nonunion workers to pay a fee to the union for its services in negotiating their contract. This is also called the Rand Formula.

Front 15

Which of the following would be covered by typical workers compensation laws?


A Ben is injured when he is struck by a vehicle when he crosses the street as he arrives at his place of emplyment.
B Larson is hurt while unlodaing a pallet for his employer when he stumbled. Larson stumbled because he had been smoking marijuana just prior to the incident.
C Beryl's wife submits a claim on Beryl's behalf for burial expenses after Beryl was killed when a crane dropped a load of lumber on him at the worksite where Beryl was a laborer.
D Faulk claims, in addition to lost wages, compensation for pain he suffers on account of a broken leg which occurred while working.

Back 15

The correct answer was C.

Under most workers compensation laws, employees are not covered while traveling to and from work, are not covered if they were intoxicated, and are not compensated for pain and suffering. Burial expenses are covered for employees who are killed on the job.

Front 16

Under the provisions of the Comprehensive Environmental Response, Compensation, and Liability Act -- otherwise known as CERCLA or Superfund


A the Civil Clean-up Commission (CCC) was given power to seek out those parties responsible for any release and assure their cooperation in the cleanup.
B the Environmental Protection Agency (EPA) has no authority to act when potentially responsible parties can be identified or located.
C the Environmental Protection Agency (EPA) is permitted to obtain private party cleanup through court orders.
D a Federal Superfund is utilized whenever pollution is caused by a federal agency.

Back 16

The correct answer was C.

The Comprehensive Environmental Response, Compensation, and Liability Act -- otherwise known as CERCLA or Superfund -- provides a Federal "Superfund" to clean up uncontrolled or abandoned hazardous-waste sites as well as accidents, spills, and other emergency releases of pollutants and contaminants into the environment. Through CERCLA, EPA was given power to seek out those parties responsible for any release and assure their cooperation in the cleanup. EPA cleans up orphan sites when potentially responsible parties cannot be identified or located, or when they fail to act. Through various enforcement tools, EPA obtains private party cleanup through orders, consent decrees, and other small party settlements. EPA also recovers costs from financially viable individuals and companies once a response action has been completed.

Front 17

The Clean Water Act (CWA) establishes the basic structure for regulating discharges of pollutants into the waters of the United States and regulating quality standards for surface waters. Under the CWA, the Environmental Protection Agency has implemented pollution control programs including all of the following EXCEPT:


A requiring individual homes that use a septic system to obtain a National Pollutant Discharge Elimination System permit.
B setting wastewater standards for industry.
C setting water quality standards for all contaminants in surface waters.
D making it unlawful to discharge any pollutant into navigable waters unless a permit is obtained.

Back 17

The correct answer was A.

Under the CWA, the Environmental Protection Agency (EPA) has implemented pollution control programs such as setting wastewater standards for industry. It has also set water quality standards for all contaminants in surface waters. The CWA made it unlawful to discharge any pollutant from a point source into navigable waters unless a permit is obtained. EPA's National Pollutant Discharge Elimination System (NPDES) permit program controls discharges. Individual homes that are connected to a municipal system, use a septic system, or do not have a surface discharge do not need an NPDES permit; however, industrial, municipal, and other facilities must obtain permits if their discharges go directly to surface waters.

Front 18

The Endangered Species Act


A provides for the conservation of threatened and endangered animals but not of plants nor insects.
B provides for the conservation of the habitats in which endangered species are found.
C prohibits the use of government funds for the purchase of endangered species habitats.
D provides for civil penalties for violations of the Act but not criminal penalties.

Back 18

The correct answer was B.

The Endangered Species Act provides a program for the conservation of threatened and endangered plants and animals and the habitats in which they are found. The U.S. Fish and Wildlife Service (FWS) of the Department of the Interior maintains a worldwide list. Species include birds, insects, fish, reptiles, mammals, crustaceans, flowers, grasses, and trees. Anyone can petition FWS to include a species on this list. The Act provides in some instances for the purchase of lands to protect certain habitats. The Act establishes both civil and criminal penalties for violations.