FPC STUDY GUIDE CB ACTUAL EXAM
PAPER 2026 194 QUESTIONS WITH
COMPLETE SOLUTIONS GRADED A+
⩥ Worker that requires the employer to pay ER taxes. Answer:
Employee
⩥ Worker that receives W2 form. Answer: Employee
⩥ Worker that does not have taxes withheld. Answer: Independent
Contractor
⩥ Worker that has TIN. Answer: Independent Contractor
⩥ Worker that receives 1099 Form. Answer: Independent Contractor
⩥ Asks how independent is the employee and how much control can be
exervised over the worker.. Answer: Common Law Test
⩥ A worker cannot sign a new contract stating that they will be an
indepndent contractor.. Answer: Common Law Test
, ⩥ Employer has treated similar workers as independent contractors for
any period and has filed tax returns. Answer: Reasonable Basis Test
⩥ Longstanding industry standard of treating similar workers as
independent contractors. Answer: Reasonable Basis Test
⩥ Court decisions for treating workers in similar circumstances as
independent contractors. Answer: Reasonable Basis Test
⩥ IRS has ruled in a "published ruling" that the workers are indpendent
contractors. Answer: Reasonable Basis Test
⩥ Temporary Service Provider or Leasing Company. Answer: Pays
employees and taxes instead of company the employee is performing
services for
⩥ Immigration reform and Control Act of 1986 (IRCA). Answer:
Requires employer to verify employees' eligibility for employment in
the US.
⩥ Penalties for Violating IRCA. Answer: $375 for the first offence and
$16,000 for the third
PAPER 2026 194 QUESTIONS WITH
COMPLETE SOLUTIONS GRADED A+
⩥ Worker that requires the employer to pay ER taxes. Answer:
Employee
⩥ Worker that receives W2 form. Answer: Employee
⩥ Worker that does not have taxes withheld. Answer: Independent
Contractor
⩥ Worker that has TIN. Answer: Independent Contractor
⩥ Worker that receives 1099 Form. Answer: Independent Contractor
⩥ Asks how independent is the employee and how much control can be
exervised over the worker.. Answer: Common Law Test
⩥ A worker cannot sign a new contract stating that they will be an
indepndent contractor.. Answer: Common Law Test
, ⩥ Employer has treated similar workers as independent contractors for
any period and has filed tax returns. Answer: Reasonable Basis Test
⩥ Longstanding industry standard of treating similar workers as
independent contractors. Answer: Reasonable Basis Test
⩥ Court decisions for treating workers in similar circumstances as
independent contractors. Answer: Reasonable Basis Test
⩥ IRS has ruled in a "published ruling" that the workers are indpendent
contractors. Answer: Reasonable Basis Test
⩥ Temporary Service Provider or Leasing Company. Answer: Pays
employees and taxes instead of company the employee is performing
services for
⩥ Immigration reform and Control Act of 1986 (IRCA). Answer:
Requires employer to verify employees' eligibility for employment in
the US.
⩥ Penalties for Violating IRCA. Answer: $375 for the first offence and
$16,000 for the third
