Which of the Following Is True of the Fair Labor

question 17

Multiple Choice

Which of the following is true of the Fair Labor Standards Act?

• A) Employers are covered if they are engaged in interstate commerce.
• B) Employers are covered if their annual gross sales exceed $1 million.
• C) Employers are covered if they are involved in hiring and firing decisions.
• D) Employees are not discriminated based on their age.

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Definitions:

Ceiling Amount

A maximum limit placed on the value, income, or other financial metric that can be used for calculations, such as determining eligibility for tax deductions or credits.

Multi-Part W-3

A comprehensive summary form submitted by employers to the IRS, detailing total earnings, tax withholdings, and other payroll information for employees.

Social Security Portion

The part of income that goes towards Social Security contributions, typically seen on payroll statements.

Annual Wage Base

The maximum amount of earnings on which employees must pay Social Security taxes in a given year.