Module 3: Practice Activity and Study Guide

Practice Activity

To reinforce your understanding of the key concepts covered in Module 3, complete the following practice activities. These activities will help you apply what you’ve learned and ensure you are prepared for more advanced topics.

Activity 1: Minimum Wage and Overtime Calculations

Calculate the gross pay, overtime pay, and total pay for the following scenarios:

An employee works 45 hours in a week at a rate of $18 per hour. Calculate their total pay, including overtime.
An employee works 50 hours in a week at a rate of $20 per hour. Calculate their total pay, including overtime.

Activity 2: Exempt vs. Non-Exempt Employees

Research the criteria for classifying employees as exempt or non-exempt under the Fair Labor Standards Act (FLSA). Create a table summarizing the key differences between exempt and non-exempt employees, including eligibility for overtime pay and examples of job duties for each category.

Category	Eligibility for Overtime Pay	Examples of Job Duties
Exempt Employees	No	Executive: Managing a department, supervising employees, hiring/firing authority Administrative: Office work related to management, exercising discretion and judgment Professional: Advanced knowledge in a field of science or learning
Non-Exempt Employees	Yes	Hourly workers Some salaried workers not meeting exemption criteria

Activity 3: Benefits and Deductions

Describe the difference between pre-tax and post-tax deductions. Provide examples of each type of deduction and explain the benefits of pre-tax deductions for both employees and employers.

Activity 4: Calculating Pre-Tax and Post-Tax Deductions

Calculate the net pay for the following scenarios:

An employee earns a gross salary of $4,000 per month. They have a pre-tax health insurance deduction of $200, a pre-tax retirement plan contribution of $300, and a post-tax life insurance deduction of $50. Calculate their taxable income and net pay.
An employee earns a gross salary of $3,500 per month. They have a pre-tax health insurance deduction of $150, a pre-tax retirement plan contribution of $250, and a post-tax disability insurance deduction of $30. Calculate their taxable income and net pay.

Activity 5: Garnishments and Levies

Research the procedures for handling child support garnishments and tax levies. Create a flowchart that outlines the steps an employer must take upon receiving a garnishment or levy order, from reviewing the order to remitting the withheld funds.

Study Guide

Use this study guide to review the key concepts and prepare for your assessments in Module 3.

Key Concepts

Minimum wage and overtime calculations
Exempt vs. non-exempt employees
Health insurance, retirement plans, and other benefits
Pre-tax and post-tax deductions
Child support, tax levies, and other garnishments
Compliance and processing procedures for garnishments and levies

Review Questions

What are the current federal minimum wage and overtime pay requirements under the FLSA?
How do you classify an employee as exempt or non-exempt? Provide examples of job duties for each classification.
What are the advantages of pre-tax deductions for employees and employers?
Describe the steps for calculating net pay, including pre-tax and post-tax deductions.
What are the employer’s responsibilities when processing a child support garnishment order?
How should an employer handle a tax levy notice from the IRS?

Additional Resources

For further reading and practice, refer to the following resources:

Practice Activity and Study Guide