FPC PAYROLL FUNDAMENTALS
QUESTIONS AND CORRECT
DETAILED ANSWERS LATEST
EDITION
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 - 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 - 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 - 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.
QUESTIONS AND CORRECT
DETAILED ANSWERS LATEST
EDITION
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 - 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 - 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 - 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.
