Payroll Source - Section 1 The Employer-
Employee Relationship Exam Actual
Questions and Answers 2026
List the factors used under the common law test in determining
whether a business has the right to control the financial aspects of
a worker's activities. -
correct answer ✅1. Whether the worker has made a significant
financial investment in performing the work.
2. Whether the worker has business expenses that are
unreimbursed.
3. Whether the worker makes his or her services available to the
general market.
4. Whether the worker is paid on a regularly recurring basis or by
the job.
What are th four categories of statutory employees? -
correct answer ✅1. Agent-Drivers or commission-drivers
2. Full-time life insurace salespersons
3. Homeworkers
4. Traveling or city salepersons
What are the 2 categories of statutory nonemployees? -
correct answer ✅1. Qualified real estate agents
2. Direct Sellers
, Payroll Source - Section 1 The Employer-
Employee Relationship Exam Actual
Questions and Answers 2026
Compare a temporary help agency employee and a lease employee.
-
correct answer ✅Temporary workers are hired, screened and
trained by the temp agency to provide services for clients. They are
employees of the temp agency, which sets their wages and has the
sole right to hire and fire. The agency is responsible for all payroll
taxes.
Leased employees are hired, trained, and qualified by a leasing
company, which provides workers for a client company. The client
pays a fee to the leasing company to cover the cost of payroll,
benefits, etc.
What is the ABC test used to determine? -
correct answer ✅The ABC test is used by many states to determine
a worker's employment status under state unemployment
insurance laws.
What are the 3 parts to the ABC test? -
correct answer ✅1. Absence of control. The worker is free from
Employee Relationship Exam Actual
Questions and Answers 2026
List the factors used under the common law test in determining
whether a business has the right to control the financial aspects of
a worker's activities. -
correct answer ✅1. Whether the worker has made a significant
financial investment in performing the work.
2. Whether the worker has business expenses that are
unreimbursed.
3. Whether the worker makes his or her services available to the
general market.
4. Whether the worker is paid on a regularly recurring basis or by
the job.
What are th four categories of statutory employees? -
correct answer ✅1. Agent-Drivers or commission-drivers
2. Full-time life insurace salespersons
3. Homeworkers
4. Traveling or city salepersons
What are the 2 categories of statutory nonemployees? -
correct answer ✅1. Qualified real estate agents
2. Direct Sellers
, Payroll Source - Section 1 The Employer-
Employee Relationship Exam Actual
Questions and Answers 2026
Compare a temporary help agency employee and a lease employee.
-
correct answer ✅Temporary workers are hired, screened and
trained by the temp agency to provide services for clients. They are
employees of the temp agency, which sets their wages and has the
sole right to hire and fire. The agency is responsible for all payroll
taxes.
Leased employees are hired, trained, and qualified by a leasing
company, which provides workers for a client company. The client
pays a fee to the leasing company to cover the cost of payroll,
benefits, etc.
What is the ABC test used to determine? -
correct answer ✅The ABC test is used by many states to determine
a worker's employment status under state unemployment
insurance laws.
What are the 3 parts to the ABC test? -
correct answer ✅1. Absence of control. The worker is free from
