AIPB STUDY GUIDE ELITE REVIEW WITH
COMPREHENSIVE SOLVED QUESTIONS AND
DETAILED ANSWERS
◉On which form are wages reported? Answer: W-2
Due on for Employee copies January 31
◉If an employer wants s a written determination from the IRS on a
worker's status, which form should it submit? Answer: SS-8
◉When the common-law test is met, an individual is considered?
Answer: an employee
◉Nonemployee compensation is reported on Form: Answer: 1099-
MISC
◉Employer payments to employees for services rendered are called
Answer: wages
◉Employer payments to independent contractors are made as ordinary
Answer: payments
, ◉A taxpayer identification number supplied by an independent
contractor may be either an individual's ___________ ____________
number or a company's _____________ ___________ number. Answer:
social security , employer ID
◉If an employer wishes to obtain a written determination from the IRS
regarding an individual's worker status, it can submit Form
_________________. Answer: SS-8
◉While an employer is waiting for a written determination of an
individual's worker status from the IRS, it should treat the individual as
(a, an) __________________________ Answer: employee
◉If an employer unintentionally misclassifies an employee as an
independent contractor and also fails to file Form 1099-MISC, the tax
assessment for failure to withhold FICA tax is equal to what percentage
of the employee's portion of Social Security and Medicare tax? Answer:
40%
◉FLSA Answer: Fair Labor Standards Act , which is enforced by the
U.S. Department of Labor, Wage and Hour Division. Employers covered
by the FLSA are requited to pay a minimum hourly wage and overtime
rate to all covered employees. The FLSA defines the hours of work for
which employees must be paid.
COMPREHENSIVE SOLVED QUESTIONS AND
DETAILED ANSWERS
◉On which form are wages reported? Answer: W-2
Due on for Employee copies January 31
◉If an employer wants s a written determination from the IRS on a
worker's status, which form should it submit? Answer: SS-8
◉When the common-law test is met, an individual is considered?
Answer: an employee
◉Nonemployee compensation is reported on Form: Answer: 1099-
MISC
◉Employer payments to employees for services rendered are called
Answer: wages
◉Employer payments to independent contractors are made as ordinary
Answer: payments
, ◉A taxpayer identification number supplied by an independent
contractor may be either an individual's ___________ ____________
number or a company's _____________ ___________ number. Answer:
social security , employer ID
◉If an employer wishes to obtain a written determination from the IRS
regarding an individual's worker status, it can submit Form
_________________. Answer: SS-8
◉While an employer is waiting for a written determination of an
individual's worker status from the IRS, it should treat the individual as
(a, an) __________________________ Answer: employee
◉If an employer unintentionally misclassifies an employee as an
independent contractor and also fails to file Form 1099-MISC, the tax
assessment for failure to withhold FICA tax is equal to what percentage
of the employee's portion of Social Security and Medicare tax? Answer:
40%
◉FLSA Answer: Fair Labor Standards Act , which is enforced by the
U.S. Department of Labor, Wage and Hour Division. Employers covered
by the FLSA are requited to pay a minimum hourly wage and overtime
rate to all covered employees. The FLSA defines the hours of work for
which employees must be paid.
