Question

In: Accounting

Which law governs the fiduciary responsibility that employers have with regards to employees’ payroll deductions? ACA/...

Which law governs the fiduciary responsibility that employers have with regards to employees’ payroll deductions?

ACA/ ERISA/ FICA/ FLSA

Solutions

Expert Solution

Correct Answer:

Option (2) or The Employee Retirement Income Security Act of 1974 ( ERISA) is a federal governs the fiduciary responsibility that employers have with regards to employees’ payroll deductions. It includes the minimum standard for the employee benefit plans mentained by the employers in the private sector.This law sets a standard for pension and welfare plan that protect employees of the organization. it includes the rules and minimum standards that will affect the employer and employees health coverage.

Incorrect answers:

Option (1) or ACA (Affordable care Act) is incorrect answer because ERISA (The Employee Retirement Income Security Act of 1974) is a federal governs the fiduciary responsibility that employers have with regards to employees’ payroll deductions.

Option (3) or FICA (Federal Insurance Contributions Acts) is incorrect answer because it provides the benefits to retirees and people and children disabilities. So it not the act that federal governs the fiduciary responsibility that employers have with regards to employees’ payroll deductions

Option (4) or Fair Labour Standards Act(FLSA) is incorrect answer because this act is related to minimum wage,Overtime pay, Prohibitation of employment of minors.

So correct answer is Option (2) or ERISA (The Employee Retirement Income Security Act of 1974)

ekkarill92 answered 2 years ago
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