What is Your Payroll IQ?

Here is a little quiz to check your knowledge of current payroll rules and laws. The answers are at the bottom of the article. Good luck!

1. None of your well-paid employees are minimum wage earners, and you don’t even have a position that will ever pay that little. You don’t really have to display that federal minimum wage poster, do you?
___ Yes
___ No
___ Maybe

2. Not displaying your minimum wage poster is a violation of….
___ The FLSA
___ OSHA
___ EEOC
___ Nothing

3. Is business use of a company vehicle taxable?
___ Yes
___ No
___ Depends on the situation

4. Willful violations of FLSA laws may be prosecuted criminally, and each breach can cost you up to
___ $5,000
___ $10,000
___ $50,000

5. A second willful violation of FLSA laws can land you in …
___ Legal hot water
___ Court
___ Jail
___ All of the above

6. The statute of limitations for recovering back pay in normal circumstances is …
___ 18 months
___ 2 years
___ 5 years

7. Which situation takes priority in wage garnishments?
___ Federal Guaranteed Student Loans
___ Chapter 13 Bankruptcy
___ Family Support Payments

8. A Family Support Order is taking 25 percent of an employee’s disposable earnings. Can any other garnishments be added to the employee’s paycheck?
___ Yes
___ No
___ Maybe

9. Is the personal use of a company car taxable?
___ Yes
___ No
___ Depends on the situation

10. A terminated employee never picks up his last paycheck. All efforts to contact the employee have failed. How long do you have to wait to reclaim that employee’s pay?
___ 2 years
___ 5 years
___ 10 years
___ Forever
___ Depends on your state

How did you do? Did you hesitate on even one of these answers? If you did, you owe it to yourself and your company to do some research or get some training. Payroll law is too complex to leave anything to chance. Don’t wait.

1. Yes
2. The FLSA
3. No
4. $10,000
5. All of the above
6. 2 years
7. Chapter 13 Bankruptcy Order
8. Maybe: Additional Family Support Orders, a Federal Tax Levy or a Bankruptcy Order can be added. Be mindful of the “below minimum wage rule.”
9. Yes
10. Depends on your state

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