David Owns a Small Architecture Firm with 75 Employees

question 24

Multiple Choice

David owns a small architecture firm with 75 employees. He wants to use a PEO to handle his firm's HR activities. David is in the process of investigating Assure Group, a PEO. Which of the following undermines the argument that David should use Assure Group?

• A)Assure lacks a clear credit history due to a recent corporate name change.
• B)Assure's Web site indicates that customers experience only modest savings.
• C)Assure requires business owners to complete questionnaires about workplace safety.
• D)Assure provides payroll, recruiting, and screening services to customers.

---

Definitions:

Gross Earnings

The total income earned by a business before deductions such as taxes, expenses, and costs.

Net Pay

The take-home pay an employee receives after deductions such as taxes and retirement contributions.

Federal Income Tax

The annual income of individuals, corporations, trusts, and other legal entities is subject to a tax imposed by the IRS.

FICA Tax Rate

The combined percentage rate for Social Security and Medicare taxes that both employees and employers must pay based on earned income.