Chapter 2 Test - Finance

Overtime pay is not considered when you calculate your gross pay.

• True

• False

Employers must pay all employees overtime at the rate of 1.5 times the regular rate.

• True

• False

Some deductions are required by law, but others are optional.

• True

• False

Allowances are additions to the amount of income tax that must be withheld from your paycheck.

• True

• False

Employers must contribute matching amounts into each employee’s Medicare and Social Security accounts.

• True

• False

An employee required to work on a paid holiday is usually paid 1.5 times his or her regular hourly rate of pay.

• True

• False

It is customary for employees to receive three to ten days a year as “sick days” without deductions from pay.

• True

• False

When an employee is entitled to his or her full retirement account, the employee is said to be vested in the account.

• True

• False

Employees who telecommute often submit work to their employer using e-mail and cloud computing.

• True

• False

Under flextime, employees do not need to work a set number of hours per day

• True

• False