1
FPC Payroll Fundamentals Questions
with Correct Answers for Specific
Exam Mail
Worker that has Fed, OASDI, Medicare, State withheld
Ans: Employee
Worker that requires the employer to pay ER taxes
Ans: Employee
Worker that receives W2 form
Ans: Employee
Worker that does not have taxes withheld
Ans: Independent Contractor
Worker that has TIN
Ans: Independent Contractor
Worker that receives 1099 Form
Pretest - Stuvia US
,2
Ans: Independent Contractor
Asks how independent is the employee and how much
control can be exervised over the worker.
Ans: Common Law Test
A worker cannot sign a new contract stating that they will
be an indepndent contractor.
Ans: Common Law Test
Employer has treated similar workers as independent
contractors for any period and has filed tax returns
Ans: Reasonable Basis Test
Longstanding industry standard of treating similar workers
as independent contractors
Ans: Reasonable Basis Test
Court decisions for treating workers in similar
circumstances as independent contractors
Pretest - Stuvia US
,3
Ans: Reasonable Basis Test
IRS has ruled in a "published ruling" that the workers are
indpendent contractors
Ans: Reasonable Basis Test
Temporary Service Provider or Leasing Company
Ans: Pays employees and taxes instead of company the
employee is performing services for
Immigration reform and Control Act of 1986 (IRCA)
Ans: Requires employer to verify employees' eligibility for
employment in the US.
Penalties for Violating IRCA
Ans: $375 for the first offence and $16,000 for the third
Antidiscrimination under IRCA
Pretest - Stuvia US
, 4
Ans: The law prohibits discrimination in hiring or recruiting
workers on the basis of national origin or citizenship
Verification of eligitability
Ans: 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?
Ans: The employee's date of hire.
When must Section 2 of Form 1-9 be completed?
Ans: Within three days of hiring the employee.
Form SS-5
Ans: Application for a social security card
Form I-9
Ans: Employment Eligitability Verification
Pretest - Stuvia US
FPC Payroll Fundamentals Questions
with Correct Answers for Specific
Exam Mail
Worker that has Fed, OASDI, Medicare, State withheld
Ans: Employee
Worker that requires the employer to pay ER taxes
Ans: Employee
Worker that receives W2 form
Ans: Employee
Worker that does not have taxes withheld
Ans: Independent Contractor
Worker that has TIN
Ans: Independent Contractor
Worker that receives 1099 Form
Pretest - Stuvia US
,2
Ans: Independent Contractor
Asks how independent is the employee and how much
control can be exervised over the worker.
Ans: Common Law Test
A worker cannot sign a new contract stating that they will
be an indepndent contractor.
Ans: Common Law Test
Employer has treated similar workers as independent
contractors for any period and has filed tax returns
Ans: Reasonable Basis Test
Longstanding industry standard of treating similar workers
as independent contractors
Ans: Reasonable Basis Test
Court decisions for treating workers in similar
circumstances as independent contractors
Pretest - Stuvia US
,3
Ans: Reasonable Basis Test
IRS has ruled in a "published ruling" that the workers are
indpendent contractors
Ans: Reasonable Basis Test
Temporary Service Provider or Leasing Company
Ans: Pays employees and taxes instead of company the
employee is performing services for
Immigration reform and Control Act of 1986 (IRCA)
Ans: Requires employer to verify employees' eligibility for
employment in the US.
Penalties for Violating IRCA
Ans: $375 for the first offence and $16,000 for the third
Antidiscrimination under IRCA
Pretest - Stuvia US
, 4
Ans: The law prohibits discrimination in hiring or recruiting
workers on the basis of national origin or citizenship
Verification of eligitability
Ans: 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?
Ans: The employee's date of hire.
When must Section 2 of Form 1-9 be completed?
Ans: Within three days of hiring the employee.
Form SS-5
Ans: Application for a social security card
Form I-9
Ans: Employment Eligitability Verification
Pretest - Stuvia US
