Business and Law Test California CSLB Questions with 100% Complete Answers, Rated A+

overhead - The costs of running your business, including office expenses, etc. Stop notice - A document given for the purpose of stopping, intercepting, or freezing funds that have not yet been paid on a construction project in an attempt to ensure payment. What is required to for a stop notice to take effect? - 20-day preliminary notice must have been sent in order for a Stop Payment Notice to take effect. What is a Preliminary notice - A preliminary notice is a document sent at the beginning of a construction job to inform the GC and property owner of their work on the project. California requires subcontractors and suppliers to send preliminary notice in order to preserve their right to file a mechanics lien if they don't receive payment. What is the purpose of a I-9? - A new-hire will fill out an I-9 form to verify their employment eligibility status.. DE-1 forum - What is a US-99 - A record that an entity or person paid you. The payer fills out the 1099 form and sends copies to you and the IRS. There are several kinds of 1099 forms. If an employee quits, wages are due within ___ hours. - 72 Employment Development Department (EDD) - California government agency that supports state activities and benefit programs by collecting and administering employment-related taxes such as employer-financed unemployment insurance; also provides other services to employers and employees Franchise Tax Board - CA tax agency that collects and enforces state income tax assessment and collection. In many situations, the FTB operates similarly to the IRS. Internal Revenue Service (IRS) - Federal agency responsible for collecting income taxes Home-Improvement Contract - An agreement between the contractor and homeowner that contains all of the terms of the improvement project. Must adhere to state laws and spell out each party's responsibilities in detail. Who does NOT need a California Contractor's State License? - Sale or installation of finished products that do not become a fixed part of the structure. When must the prime contractor pay a subcontractor? - 10-days after Prime-contractor received payment. Prime contractor - Any contractor on a project who has a contract directly with the owner. sub-contractor - a person such as a plumber or electrician who performs one part of the entire construction project Contractors Surety Bond - $12,500.00 How long will the California Contractors State License Board hold a contractor responsible for observable defects? - 4 years When must a licensed contractor provide their license number? - On all contracts, advertising and 20-Day Preliminary Notices Responsible Managing Employee - Full time employee works at least 32 hours or 80% of operating time of biz, whichever is less.May be used to qualify for individual, partnership, or corp license.Never more than 3 licensees at one time.Can only act as qualifier for 1 license at a time unless either: 1) other licensee is subsidiary 2) he/she owns at least 20% of licensee 3) majority of officers/partners of other one also are those of 1st State Disability Insurance is paid by - Employees only. A contractor estimates labor and material costs for a job to be $2,500.00. Allowing for 15% overhead and an 18% profit, what should the total bid be? - Who is responsible for determining when the project is complete? - The Building Inspector. State Board of Equalization. - Appraises all public utility properties for tax assessment During a declared state of emergency how much may a contractor increase his/her prices? - MAYBE NOT CHECK 15% above the prices just prior to the declared state of emergency Contract Bond - A surety bond guaranteeing the fulfillment of obligations under construction contracts or other types of contracts Responsible Managing Officer (RMO) - The qualifying individual for a corporation Journeyman - A person who has completed an apprecnticeship program or is an experienced worker, not a trainee, and is fully qualified to perform the trade without supervision.