1. Which act sets the minimum wage, and what is the current wage rate?
2. Under the FLSA, what information concerning employees' wages earned must be maintained by the employer?
3. Who pays the social security taxes that are levied by the Federal Insurance Contributions Act?
4. How are the funds used which are provided by FUTA and SUTA?
5. What types of unfair employment practices are prohibited by the Civil Rights Act of 1964 as amended?
6. What is the purpose of the Age Discrimination in Employment Act (ADEA)?
7. Are there any exceptions to the protection afforded older workers by the Age Discrimination in Employment Act?
8. Who is covered by the Walsh-Healey Public Contracts Act?
9. What are the major provisions of the Occupational Safety and Health Act (OSHA)?
10. Under the Family and Medical Leave Act, what is the maximum number of weeks of unpaid leave that a covered employer is required to offer an employee whose spouse is seriously ill?
11. What is the primary purpose of the Employee Retirement Income Security Act (ERISA) ?
12. Explain the concept of vesting.
13. Under ERISA, if requested in writing, what information must the administrator of the pension fund supply to the participants?
14. Summarize the procedure that may be followed by the Human Resources Department in hiring new employees.
15. What information is commonly provided by a job-seeker on the application for employment form?
16. What is the significance of the Civil Rights Act of 1964 and the Age Discrimination in Employment Act in the employer's use of prehire inquiries?
17. What obligations are imposed upon the employer by the Fair Credit Reporting Act of 1968?
18. What procedures are usually included in a typical payroll accounting system?
19. What two basic records are generated in most payroll accounting systems?
20. What uses are made of the information shown in the employee's earnings record?
CASE PROBLEM
C1. Paychecks Kept Coming.
Ken, a salaried employee, was terminated from his company in April of this year. Business had been slow since the beginning of the year, and each of the operating plants had laid off workers.
Ken's dismissal was processed through the Human Resources Department, but the information was not relayed to the corporate payroll office.
As had been the policy, checks for workers at remote sites were mailed to the employees. The mailing of Ken's checks continued for the next four weekly paydays. It wasn't until the monthly payroll reports were sent to Ken's supervisor that the error was detected.
Ken refused to return the four extra checks. What actions should the company take?Chapter 1 outlines the need for payroll and personnel records. If employees are going to work, they have to be paid. The task of payroll processing has become more difficult as numerous regulations have been passed.
Payroll processing now requires advanced knowledge in the area of payroll and allows no margin for error. A payroll accounting system is the only operation of a business that is almost completely governed by various federal, state, and local laws and regulations.
Processing payroll correctly is very important. In payroll we have to ensure compliance with many laws and regulations such as:
• FAIR EMPLOYMENT LAWS
o Civil Rights Act of 1964
o Executive Orders
o Age Discrimination in Employment Act
o Americans with Disabilities Act
• OTHER FEDERAL LAWS AFFECTING THE NEED FOR PAYROLL AND PERSONNEL RECORDS
o Federal Personal Responsibility and Work Opportunity Reconciliation Act of 1996
o Immigration Reform and Control Act of 1986
o Family and Medical Leave Act of 1993
o Uniformed Services Employment and Reemployment Rights Act of 1994
o Employee Retirement Income Security Act of 1974
o Disclosure Requirements
• OTHER STATE LAWS AFFECTING THE NEED FOR PAYROLL AND PERSONNEL RECORDS
o Workers' Compensation Laws
o State Disability Benefit Laws
There are also record keeping requirements that must be followed. For example, to meet the requirements of the FLSA, the employer must keep records providing the following information with respect to each employee's wages earned:
a. Day and time of day when workweek begins
b. Regular hourly rate of pay
c. Basis of wage payments
d. Hours worked each day
e. Hours worked each week
f. Daily or weekly straight-time pay
g. Amount and nature of exempt pay
h. Weekly overtime pay
i. Total additions to or deductions from wages
j. Total remuneration for payroll period
k. Date of payment
l. Payroll period
You will look at several questions that contain vital information for payroll. These questions are in the Questions for Review at the end of Chapter 1.
Question 18: What procedures are usually included in a typical payroll accounting system?
A typical payroll accounting system includes the following procedures:
a. Record hours worked or units produced
b. Compute gross pay, deductions, and net pay
c. Complete payroll register
d. Maintain payroll deduction records
e. Update employees' earnings records
f. Prepare paychecks
g. Record payroll in accounting books
h. Prepare various payroll reports
Question 19: What two basic records are generated in most payroll accounting systems?
The two basic records generated in a payroll accounting system are the payroll register and the employee's earnings record.
Question 20: What uses are made of the information shown in the employees earnings record?
The earnings record provides the information needed to prepare periodic reports required by the various laws and to complete Form W-2 for each employee.
If you have any questions about the requirements for this chapter, please contact your instructor by e-mail or by posting in the virtual office in the classroom.