CHAPTER 2 True-False Questions F 1. Under the FLSA enterprise coverage test, hospitals and nursing homes 2–2 are only covered if their annual charges for services are at least $500,000. T 2. Institutions of higher education are extended coverage under FLSA 2–2 without regard to their annual sales volume. F 3. If a business does not meet the enterprise coverage test, none of its 2–2 workers qualify for individual employee coverage. F 4. Domestics are excluded from coverage under the FLSA individual 2–3 employee coverage. F 5. Under the FLSA, severance pay is excluded from the definition of wages. 2–4 F 6. The term wage refers to remuneration paid only on an hourly 2–4 T 7. Employees paid biweekly receive their remuneration every two weeks. 2–4 In May 2012, workers who receive the minimum hourly wage are paid F 8. $6.10 an hour. 2–4 F 9. A retail shop may employ a full-time student at $5.00 per hour. 2–5 T 10. A college may employ its own full-time students at 85 percent of the 2–5 minimum wage. F 11. Many cities have enacted ordinances establishing a so-called “living 2–5 wage” at $8.25 per hour. F 12. The FLSA defines a tipped employee as one who regularly receives tips 2–5 of more than $20 a T 13. An employer can credit up to $5.12 of a tipped employee’s minimum 2–5 wage as coming from the tips received by that employee. T 14. The FLSA requires that workers receive overtime pay for all hours 2–7 worked in excess of 40 in a workweek. F 15. The FLSA requires that workers receive overtime pay of twice the 2–7 employees’ regular hourly rate for hours worked on Sunday. T 16. Employees who are receiving remedial education may work up to 10 2–8 hours overtime each week without receiving overtime pay.
CHAPTER 2 True-False Questions F 1. 2–2 Under the FLSA enterprise coverage test, hospitals and nursing homes are only covered if their annual charges for services are at least $500,000. T 2. 2–2 Institutions of higher education are extended coverage under FLSA without regard to their annual sales volume. F 3. 2–2 If a business does not meet the enterprise coverage test, none of its workers qualify for individual employee coverage. F 4. 2–3 Domestics are excluded from coverage under the FLSA individual employee coverage. F 5. 2–4 Under the FLSA, severance pay is excluded from the definition of wages. F 6. 2–4 The term wage refers to remuneration paid only on an hourly T 7. 2–4 Employees paid biweekly receive their remuneration every two weeks. F 8. 2–4 In May 2012, workers who receive the minimum hourly wage are paid $6.10 an hour. F 9. 2–5 A retail shop may employ a full-time student at $5.00 per hour. T 10. 2–5 A college may employ its own full-time students at 85 percent of the minimum wage. F 11. 2–5 Many cities have enacted ordinances establishing a so-called “living wage” at $8.25 per hour. F 12. 2–5 The FLSA defines a tipped employee as one who regularly receives tips of more than $20 a T 13. 2–5 An employer can credit up to $5.12 of a tipped employee’s minimum wage as coming from the tips received by that employee. T 14. 2–7 The FLSA requires that workers receive overtime pay for all hours worked in excess of 40 in a workweek. F 15. 2–7 The FLSA requires that workers receive overtime pay of twice the employees’ regular hourly rate for hours worked on Sunday. T 16. 2–8 Employees who are receiving remedial education may work up to 10 hours overtime each week without receiving overtime pay.
Test-Bank-Payroll-Accounting-2012-22nd-Edition-Bieg.docx