MA312

Which of the following information is most likely to be located in the P&P manual for a medical office?

• dress code

• earnings record

• practice budget

• meeting adgendas

Answer explanation

The P&P manual typically includes items such as office hours, dress code, rules and regulations, and job descriptions and duties of staff personnel.

An employee's W-4 form should be __________.

• every pay period

• monthly

• weekly

• yearly

Answer explanation

The employee's W-4 form should be reviewed and updated yearly.

Form W-2 serves which of the following purposes?

• It summarizes taxes withheld from employee's paychecks.

• It shows the employee's total taxable income for the previous year.

• It is a complete accounting of tax deposits.

• It requires employers to pay a percentage of each employee's income.

Answer explanation

Form W-2 shows the employee's total taxable income for the previous year, along with total deductions paid.

Which of the following does the Fair Labor Standards Act primarily affect?

• salaried employees

• contract employees

• employees who earn hourly wages

• employees who have been laid off

Answer explanation

The Fair Labor Standards Act primarily affects employees who earn hourly wages by limiting the number of hours they can work and regulating overtime pay. It also sets their minimum wage.

The tax in which one-half is paid by the employer and the other half is withheld from the employee’s paycheck is __________.

• federal income

• fica

• FUTA

• unemployment

Answer explanation

The tax in which one-half is paid by the employer and the other half is withheld from the employee’s paycheck is FICA tax, Federal Insurance Contributions Act

The basics of hiring a successful employee include __________.

• hiring the first person who applies

• discussing policies and procedures early

• checking references after hiring the person

• having a set pay scale for new hires

Answer explanation

Discussing the company's policies, procedures, and expectations early in the hiring process can help ensure that the new employee is successful.

A commission is __________.

• a set amount of money per hour of work

• a set amount of money per pay period, regardless of the number of hours worked

• a percentage of the amount an employee earns for the employer

• the total amount of income after deductions

Answer explanation

A commission is a percentage of the amount an employee earns for the employer.

Which of the following would be found in an administrative procedure manual?

• telephone procedures

• collection methods for specimens

• patient preparation for testing

• equipment calibration methods

Answer explanation

An administrative procedure manual may include appropriate telephone procedures, releasing of patient PHI, guidelines for submitting claims for various providers, and templates for frequently created communications.

What is the usual amount of money kept in a petty cash account?

• $100

• $250

• $50

• $50

Answer explanation

The amount of money kept in the petty cash account is usually $50.

How often are federal employment taxes deposited for the practice?

• Yearly

• monthly

• According to the federal tax deposit schedule

• weekly

Answer explanation

Deposit frequency depends on the amount of taxes reported for the previous year and is determined every November according to the federal tax deposit schedule.