State the false statements related to Fair Labor Standard Act.
Answer to Problem 1SSQ
The correct options are “Statement 2” and “Statement 4”.
Explanation of Solution
Fair Labor Standard Act (FLSA): Fair Labor Standard Act covers the standards and provisions for minimum wages, overtime pay, equal pay for equal work irrespective of sex, recordkeeping, and child labor. This act is also known as the “Federal Wage and Hour Law”. This act sets the minimum wage rate for the workers.
Justification for Statement 2:
Direct care workers are employed directly by a family or individual to perform the services like fellowship and protection. Hence, they are not paid overtime compensation with the wages.
Direct care workers are eligible to receive overtime compensation with the minimum wages in the following conditions:
- If they perform medically related duties or provided more than a limited amount of care.
- If they are employed by third-party employers.
Justification for Statement 4:
Individual Employee Coverage is applicable to the employee, if he/she fulfills the following conditions:
- An employee is involved in interstate commerce or production of goods for interstate commerce.
- An employee is engaged in fringe occupation associated directly or indirectly with the production of goods for interstate commerce.
Justification for Statement 1, Statement 3, and Statement 5:
As per Fair Labor Standard Act (FLSA), these statements are true. Hence these are incorrect options.
Hence, the correct options are “Statement 2” and “Statement 4”.
Want to see more full solutions like this?
Chapter 2 Solutions
PAYROLL ACCT.,2019 ED.(LL)-TEXT
- Which of the following does not qualify as a "for the convenience of the employer" nontaxable fringe benefit? Multiple Choice A meal at a holiday party An overtime meal provided to an employee while working late A meal provided by a hospital to residents during their shifti The fair market value of the rent of an apartment manager living on the premisesarrow_forwardWith relation to the acknowledgment of employee benefits, which statement is false? A. The payment due in return for services provided by workers during the period is the cost to be recognized in the period for post- employment benefits. B. Rather than when the benefit is paid or payable, the cost of providing employee benefits should be recognized in the period during which the benefit is received by the employee. C. In the case of short-term employee benefits, the undiscounted amount of the benefits anticipated to be paid in relation to the service provided by workers in a period should be recorded in that period. d. The business should acknowledge the estimated cost of service years. Of profit-sharing and incentive payments when, and only when, it has a legal or constructive responsibility to do so because of previous events and a trustworthy estimation of the probable cost can be formed.arrow_forwardThe term "exempt" refers to employees who fall under the purview of the minimum wage and overtime provisions of the Fair Labor Standards Act. Select one: True False Please do fast ASAP fast pleasearrow_forward
- 1. Would it be a violation of a consumer credit protection act to suspend, demote, or transfer an employee who is subject to garnishment? 2. There are eight types of wage attachment do you think the order and percentage are fair 3. Do you think garnishment at one's job is effective, in paying back the debt?arrow_forwardWhen employers are subject to both federal and state wage-hour laws, they must observe the law that: a. is the more recent one b. is more favorable to the employer c. is more favorable to the employee d. has the bigger penaltiesarrow_forward1. Which of the following items is normally NOT assessable under salaries tax? a. Payment in lieu of notice to an employee who has been dismissed without adequate notice given by the employer. b. Tuition fee paid by an employer for an employee's children, where the employer has entered into the relevant contract with the school directly. c. Reimbursement of medical expenses of an employee by an employer pursuant to the terms provided in the employment contract. d. Lump sum payment to a resigning employee in consideration of his not engaging in the same industry for two years. 2. Henry Ltd is carrying on business in Hong Kong. It acquires funding from various sources in Hong Kong and makes investment in securities listed in overseas markets. Henry Ltd's directors carry out investment analysis in Hong Kong and instruct its overseas agents to execute the orders of purchase and sale in the overseas stock exchange. During the year 2020/21, $10 million profits were derived from…arrow_forward
- Generally, all deductions made from an employee's gross pay are required by law. True Falsearrow_forwardWhat are examples of involuntary deductions employers are required to collect for employee and employer payroll liabilities?arrow_forwardWhich of the following is a fringe benefit that employers can discriminate among employees? Question 48 Select one: a. Health and accident insurance. b. Qualified employee discount. c. Employee educational assistance. d. None of the above.arrow_forward
- 1. Which statement is incorrect regarding recognition of employee benefits? a. For post-employment benefits, the cost to be recognized in the period is the contribution payable in exchange for service rendered by employees during the period. b. The cost of providing employee benefits should be recognized in the period in which the benefit is earned by the employee, rather than when it is paid or payable. c. For short-term employee benefits, the undiscounted amount of the benefits expected to be paid in respect of service rendered by employees in a period should be recognized in that period. d. The enterprise should recognize the expected cost years of service. of profit-sharing and bonus payments when, and only when, it has a legal or constructive obligation to make such payments as a result of past events and a reliable estimate of the expected cost can be made 2. A deferred tax liability uses a. Current tax laws, unless enacted future tax laws are different b. Expected future tax…arrow_forwardUnless exempted under the appropriate legislation salaried employees are entitled to overtime for hours worked in excess of the minimum standards.. Select one: True Falsearrow_forwardAn employee's take-home pay is equal to gross pay less all voluntary deductions. True Falsearrow_forward
- Principles of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax CollegeIndividual Income TaxesAccountingISBN:9780357109731Author:HoffmanPublisher:CENGAGE LEARNING - CONSIGNMENT
- Business Its Legal Ethical & Global EnvironmentAccountingISBN:9781305224414Author:JENNINGSPublisher:Cengage