PAYROLL FUNDAMENTALS 1 ACTUAL EXAM
PAPER FULL SOLUTION QUESTIONS AND 100%
VERIFIED ANSWERS GRADED A+ BRAND NEW
2026
◉Worker that requires the employer to pay ER taxes . Answer:
Employee
◉Worker that receives W2 form . Answer: Employee
◉Worker that does not have taxes withheld . Answer: Independent
Contractor
◉Worker that has TIN . Answer: Independent Contractor
◉Worker that receives 1099 Form . Answer: Independent Contractor
◉Asks how independent is the employee and how much control can be
exervised over the worker. . Answer: Common Law Test
, ◉A worker cannot sign a new contract stating that they will be an
indepndent contractor. . Answer: Common Law Test
◉Employer has treated similar workers as independent contractors for
any period and has filed tax returns . Answer: Reasonable Basis Test
◉Longstanding industry standard of treating similar workers as
independent contractors . Answer: Reasonable Basis Test
◉Court decisions for treating workers in similar circumstances as
independent contractors . Answer: Reasonable Basis Test
◉IRS has ruled in a "published ruling" that the workers are indpendent
contractors . Answer: Reasonable Basis Test
◉Temporary Service Provider or Leasing Company . Answer: Pays
employees and taxes instead of company the employee is performing
services for
◉Immigration reform and Control Act of 1986 (IRCA) . Answer:
Requires employer to verify employees' eligibility for employment in
the US.
◉Penalties for Violating IRCA . Answer: $375 for the first offence and
$16,000 for the third
PAPER FULL SOLUTION QUESTIONS AND 100%
VERIFIED ANSWERS GRADED A+ BRAND NEW
2026
◉Worker that requires the employer to pay ER taxes . Answer:
Employee
◉Worker that receives W2 form . Answer: Employee
◉Worker that does not have taxes withheld . Answer: Independent
Contractor
◉Worker that has TIN . Answer: Independent Contractor
◉Worker that receives 1099 Form . Answer: Independent Contractor
◉Asks how independent is the employee and how much control can be
exervised over the worker. . Answer: Common Law Test
, ◉A worker cannot sign a new contract stating that they will be an
indepndent contractor. . Answer: Common Law Test
◉Employer has treated similar workers as independent contractors for
any period and has filed tax returns . Answer: Reasonable Basis Test
◉Longstanding industry standard of treating similar workers as
independent contractors . Answer: Reasonable Basis Test
◉Court decisions for treating workers in similar circumstances as
independent contractors . Answer: Reasonable Basis Test
◉IRS has ruled in a "published ruling" that the workers are indpendent
contractors . Answer: Reasonable Basis Test
◉Temporary Service Provider or Leasing Company . Answer: Pays
employees and taxes instead of company the employee is performing
services for
◉Immigration reform and Control Act of 1986 (IRCA) . Answer:
Requires employer to verify employees' eligibility for employment in
the US.
◉Penalties for Violating IRCA . Answer: $375 for the first offence and
$16,000 for the third
