Module 2: Practice Activity and Study Guide

Practice Activity

To reinforce your understanding of the key concepts covered in Module 2, 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: Fair Labor Standards Act (FLSA)

Research the current federal minimum wage and compare it with the minimum wage in your state. Write a brief summary of how the FLSA impacts overtime pay calculations and provide an example calculation for an employee who works 50 hours in a week at a rate of $15 per hour.

Activity 2: Family and Medical Leave Act (FMLA)

Identify the key eligibility requirements for FMLA leave. Create a flowchart that outlines the steps an employee must take to apply for FMLA leave, including the documentation required and the employer’s responsibilities.

Activity 3: State-Specific Payroll Regulations

Select two states with different minimum wage rates and overtime laws. Create a table comparing the minimum wage, overtime rules, and payday requirements for these states.

State	Minimum Wage	Overtime Rules	Payday Requirements
California	$15.00 per hour	Over 8 hours/day or 40 hours/week	Semi-monthly
Texas	$7.25 per hour	Over 40 hours/week	At least once per month

Activity 4: Local Tax Requirements

Research the local income tax requirements for two cities or counties in your state. Briefly summarize the tax rates and filing requirements for employers in these localities.

Activity 5: Federal Income Tax Withholding (FITW)

Calculate the federal income tax withholding for an employee with gross pay of $1,000 per week using the current IRS tax tables. Assume the employee is single with no dependents. Provide a step-by-step breakdown of the calculation.

Activity 6: Social Security and Medicare Taxes (FICA)

Calculate the total FICA taxes (Social Security and Medicare) for an employee with a gross pay of $1,500 per week. Include both the employee’s and employer’s contributions in your calculation.

Activity 7: Unemployment Taxes (FUTA and SUTA)

Calculate the federal and state unemployment taxes for an employee with a gross pay of $8,000 per quarter. Use the FUTA tax rate of 6.0% on the first $7,000 of wages and assume a state unemployment tax rate of 3.5%. Provide a detailed breakdown of the calculations.

Activity 8: Reporting Requirements

Research the deadlines for filing Form W-2 and Form 1099 with the IRS. Create a checklist of the steps an employer must take to prepare and file these forms accurately and on time.

Study Guide

Use this study guide to review the key concepts and prepare for your assessments in Module 2.

Key Concepts

Fair Labor Standards Act (FLSA)
Family and Medical Leave Act (FMLA)
State-specific payroll regulations
Local tax requirements and compliance
Federal income tax withholding (FITW)
Social Security and Medicare taxes (FICA)
Unemployment taxes (FUTA and SUTA)
Reporting requirements (e.g., W-2, 1099)

Review Questions

What are the key provisions of the Fair Labor Standards Act (FLSA)?
How does the Family and Medical Leave Act (FMLA) protect employees?
What are the minimum wage and overtime rules in your state?
How do local income taxes affect payroll processing?
What information is required on Form W-4 to calculate federal income tax withholding?
How are Social Security and Medicare taxes (FICA) calculated?
What are the differences between FUTA and SUTA taxes?
When are employers required to file Form W-2 and Form 1099 with the IRS?

Additional Resources

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

Practice Activity and Study Guide