FPC Payroll Fundamentals UPDATED
ACTUAL Questions and CORRECT
ANSWERS
Worker that has Fed, OASDI, Medicare, State withheld - CORRECT ANSWER-
✔✔Employee
Worker that requires the employer to pay ER taxes - CORRECT ANSWER- ✔✔Employee
Worker that receives W2 form - CORRECT ANSWER- ✔✔Employee
Worker that does not have taxes withheld - CORRECT ANSWER- ✔✔Independent
Contractor
Worker that has TIN - CORRECT ANSWER- ✔✔Independent Contractor
Worker that receives 1099 Form - CORRECT ANSWER- ✔✔Independent Contractor
Asks how independent is the employee and how much control can be exervised over the
worker. - CORRECT ANSWER- ✔✔Common Law Test
A worker cannot sign a new contract stating that they will be an indepndent contractor. -
CORRECT ANSWER- ✔✔Common Law Test
Employer has treated similar workers as independent contractors for any period and has filed
tax returns - CORRECT ANSWER- ✔✔Reasonable Basis Test
Longstanding industry standard of treating similar workers as independent contractors -
CORRECT ANSWER- ✔✔Reasonable Basis Test
, Court decisions for treating workers in similar circumstances as independent contractors -
CORRECT ANSWER- ✔✔Reasonable Basis Test
IRS has ruled in a "published ruling" that the workers are indpendent contractors -
CORRECT ANSWER- ✔✔Reasonable Basis Test
Temporary Service Provider or Leasing Company - CORRECT ANSWER- ✔✔Pays
employees and taxes instead of company the employee is performing services for
Immigration reform and Control Act of 1986 (IRCA) - CORRECT ANSWER- ✔✔Requires
employer to verify employees' eligibility for employment in the US.
Penalties for Violating IRCA - CORRECT ANSWER- ✔✔$375 for the first offence and
$16,000 for the third
Antidiscrimination under IRCA - CORRECT ANSWER- ✔✔The law prohibits
discrimination in hiring or recruiting workers on the basis of national origin or citizenship
Verification of eligitability - CORRECT ANSWER- ✔✔The burden of verifying that any
employee is eligible to work in this country falls on the employer. All employees hired after
November 6, 1989 must be verified.
When must Section 1 of Form I-9 be completed? - CORRECT ANSWER- ✔✔The
employee's date of hire.
When must Section 2 of Form 1-9 be completed? - CORRECT ANSWER- ✔✔Within three
days of hiring the employee.
Form SS-5 - CORRECT ANSWER- ✔✔Application for a social security card
Form I-9 - CORRECT ANSWER- ✔✔Employment Eligitability Verification
Employee SSN verification is... - CORRECT ANSWER- ✔✔recommended but not required.
ACTUAL Questions and CORRECT
ANSWERS
Worker that has Fed, OASDI, Medicare, State withheld - CORRECT ANSWER-
✔✔Employee
Worker that requires the employer to pay ER taxes - CORRECT ANSWER- ✔✔Employee
Worker that receives W2 form - CORRECT ANSWER- ✔✔Employee
Worker that does not have taxes withheld - CORRECT ANSWER- ✔✔Independent
Contractor
Worker that has TIN - CORRECT ANSWER- ✔✔Independent Contractor
Worker that receives 1099 Form - CORRECT ANSWER- ✔✔Independent Contractor
Asks how independent is the employee and how much control can be exervised over the
worker. - CORRECT ANSWER- ✔✔Common Law Test
A worker cannot sign a new contract stating that they will be an indepndent contractor. -
CORRECT ANSWER- ✔✔Common Law Test
Employer has treated similar workers as independent contractors for any period and has filed
tax returns - CORRECT ANSWER- ✔✔Reasonable Basis Test
Longstanding industry standard of treating similar workers as independent contractors -
CORRECT ANSWER- ✔✔Reasonable Basis Test
, Court decisions for treating workers in similar circumstances as independent contractors -
CORRECT ANSWER- ✔✔Reasonable Basis Test
IRS has ruled in a "published ruling" that the workers are indpendent contractors -
CORRECT ANSWER- ✔✔Reasonable Basis Test
Temporary Service Provider or Leasing Company - CORRECT ANSWER- ✔✔Pays
employees and taxes instead of company the employee is performing services for
Immigration reform and Control Act of 1986 (IRCA) - CORRECT ANSWER- ✔✔Requires
employer to verify employees' eligibility for employment in the US.
Penalties for Violating IRCA - CORRECT ANSWER- ✔✔$375 for the first offence and
$16,000 for the third
Antidiscrimination under IRCA - CORRECT ANSWER- ✔✔The law prohibits
discrimination in hiring or recruiting workers on the basis of national origin or citizenship
Verification of eligitability - CORRECT ANSWER- ✔✔The burden of verifying that any
employee is eligible to work in this country falls on the employer. All employees hired after
November 6, 1989 must be verified.
When must Section 1 of Form I-9 be completed? - CORRECT ANSWER- ✔✔The
employee's date of hire.
When must Section 2 of Form 1-9 be completed? - CORRECT ANSWER- ✔✔Within three
days of hiring the employee.
Form SS-5 - CORRECT ANSWER- ✔✔Application for a social security card
Form I-9 - CORRECT ANSWER- ✔✔Employment Eligitability Verification
Employee SSN verification is... - CORRECT ANSWER- ✔✔recommended but not required.
