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The Fair Labor Standards Act (FLSA) requires employers to display official posters informing employees of minimum wage, overtime, and child labor rights. FMLA, ERISA, and COBRA have their own requirements, but the wage and hour poster mandate stems from FLSA. Payroll professionals must be aware of poster compliance because violations may result in Department of Labor (DOL) penalties. On APA exams, poster rules are tested under Core Payroll Concepts.

The Equal Employment Opportunity Commission (EEOC) enforces federal anti-discrimination laws covering hiring, compensation, promotions, and other employment practices. Payroll must comply with equal pay provisions under the Equal Pay Act and Title VII of the Civil Rights Act. While the IRS handles tax matters, DOL enforces wage/hour laws, and SSA administers Social Security benefits, it is the EEOC that monitors discrimination issues. On APA exams, identifying the correct enforcement agency ensures candidates understand payroll’s legal environment.

The Immigration Reform and Control Act (IRCA) mandates that employers complete Form I-9 for all new hires, verifying identity and work authorization. ERISA governs retirement plans, FMLA provides leave rights, and COBRA provides health insurance continuation. Payroll and HR share responsibility for I-9 compliance. On APA exams, IRCA-related questions often test knowledge of new hire documentation requirements.

To calculate monthly pay: $60,000 ÷ 12 = $5,000.

Payroll professionals must differentiate between pay frequencies (monthly = 12, semimonthly = 24, biweekly = 26, weekly = 52) when converting annual salaries. Errors in conversion can lead to incorrect paychecks, withholding, and benefit contributions. On APA exams, salary-to-period conversion is a fundamental calculation skill.

Bank reconciliations ensure that actual tax deposits (cash outflows) match recorded payroll liabilities. Payroll registers show pay, deposit schedules list due dates, and W-2s cover year-end reporting. On APA exams, audit process questions test whether candidates know which tools align with specific controls.