Utah Contractor Business and Law Exam Questions and Answers |
Latest 2026 Update
Q: An employer who deducts part of the premium from the wages of an employee
has a CLASS B
Answer:
MISDEMEANOR and fined NOT MORE THAN $100/OFFENSE.
Workers Comp Noncompliance D-23 Workers Comp Code
After a finding of noncompliance, a penalty is imposed agains the employer.
Either $1000 or 3x the amount of the premiums the employer would have paid for
workers'
comp insurance (which ever is greater).
Workers Comp Reporting Injuries (Location) D-28 Workers Comp Code
Correcting a Cited Violation D-59 Workers Comp Code
$7000 for each day the violation continues to be uncorrected.
Time starts after the expiration give to the employer to correct the violation.
Health Insurance Plans (Location) E-17 IRS Circular E
Health Insurance Rule (Answer) - If you pay the cost of an accident or health
insurance plan
for your employees or their family, your payments are not wages and are not subject
to social
security or medicare or futa taxes or federal income taxes.
,Q: Medicare Tax Rule - E24 IRS Circular E
Answer:
There is now wage base limit for medicare tax. All covered wages are subject to
medicare tax.
Trust Fund Recovery Penalty E-30 IRS Circular E
If taxes are not withheld from a paycheck or just not paid to the government, you get
a
penalty.
All responsible persons pay a penalty of 100% of the trust fund taxes.
Responsible persons can be anyone involved (pretty much).
Ladder Rules (Location) - F3, F4 OSHA Code
Ladders need to extend 3 feet past upper landing surface
Mark broken ladders with "Do Not Use" or something like that
Scaffolds Rules (Location) F-11, F12 OSHA Code
10 feet for scaffolds
Fall Protection (Location) F-15, F-17 OSHA Code
Unprotected Edge of 6ft or more
Face and Eye Protection (Location) F-25 OSHA Code
Head Protection (Location) F-27 OSHA Code
Accounting Equation Glossary
An expression in dollar amounts of the equivalency of the assets and equities of an
enterprise.
Equation: Assets = Liabilities + Owner's Equity.
,Q: Also called a balance sheet equation
Answer:
Addenda Glossary
plural form of addendum, a list of things to be added.
Addendum Glossary
change to a signed contract. During the bidding process, a formal change issued by
the project
owner to all identified bidders.
Alternative Dispute Resolution Glossary
Any means of settling disputes outside of the courtroom, without litigation.
ADR typically includes early neutral evaluation, negotiation, conciliation, mediation,
and
arbitration.
As-Built Drawings Glossary
A revised set of drawings submitted by contractor after completion of project.
Drawings show
dimensions, geometry, and location of all components.
Assignment of Contract Glossary
the legal transfer of the obligations and benefits of a contract from one party, called
the
assignor, to another, called the assignee.
Attractive Nuisance (Location) Glossary
Balance Sheet Equation 5-6 (Accounting) and (Glossary)
Also known as the accounting equation.
Assets = Liabilities + Owner's Equity
, Q: Business Entity Concept (Location) Glossary
Answer:
Cardinal Change Glossary
Change in which the purpose of the original agreement has been frustrated or made
impossible by the extent of the requested change.
Cost Plus Contract (Location) Glossary
Contractor is paid for actual cost of labor and materials plus a markup for overhead
and profit.
Conteroffer Glossary
A response given to an initial offer. A counteroffer means the original offer was
rejected and
replaced with another. A vague or conditional response to an offer may be interpreted
as a
counteroffer.
Current Liability Glossary
A debt or other obligation that must be paid or liquidated WITHIN ONE YEAR OR
OPERATING
CYCLE, and the payment or liquidation of which will require that use of presently
classified
current assets.
Depreciation Expense Glossary
Expense from the expiration of a plant asset's "quantity of usefulness"
Shown over periods that benefit from the asset's use.
ACCELERATED DEPRECIATION: depreciates an asset at a higher rate during the
early part of its
useful life to claim a higher tax deduction.
STRAIGHT-LINE DEPRECIATION: subtracts the salvage value from the purchase
price of the
asset and divides the amount evenly across a specified timeframe.
Deprciation Glossary
Latest 2026 Update
Q: An employer who deducts part of the premium from the wages of an employee
has a CLASS B
Answer:
MISDEMEANOR and fined NOT MORE THAN $100/OFFENSE.
Workers Comp Noncompliance D-23 Workers Comp Code
After a finding of noncompliance, a penalty is imposed agains the employer.
Either $1000 or 3x the amount of the premiums the employer would have paid for
workers'
comp insurance (which ever is greater).
Workers Comp Reporting Injuries (Location) D-28 Workers Comp Code
Correcting a Cited Violation D-59 Workers Comp Code
$7000 for each day the violation continues to be uncorrected.
Time starts after the expiration give to the employer to correct the violation.
Health Insurance Plans (Location) E-17 IRS Circular E
Health Insurance Rule (Answer) - If you pay the cost of an accident or health
insurance plan
for your employees or their family, your payments are not wages and are not subject
to social
security or medicare or futa taxes or federal income taxes.
,Q: Medicare Tax Rule - E24 IRS Circular E
Answer:
There is now wage base limit for medicare tax. All covered wages are subject to
medicare tax.
Trust Fund Recovery Penalty E-30 IRS Circular E
If taxes are not withheld from a paycheck or just not paid to the government, you get
a
penalty.
All responsible persons pay a penalty of 100% of the trust fund taxes.
Responsible persons can be anyone involved (pretty much).
Ladder Rules (Location) - F3, F4 OSHA Code
Ladders need to extend 3 feet past upper landing surface
Mark broken ladders with "Do Not Use" or something like that
Scaffolds Rules (Location) F-11, F12 OSHA Code
10 feet for scaffolds
Fall Protection (Location) F-15, F-17 OSHA Code
Unprotected Edge of 6ft or more
Face and Eye Protection (Location) F-25 OSHA Code
Head Protection (Location) F-27 OSHA Code
Accounting Equation Glossary
An expression in dollar amounts of the equivalency of the assets and equities of an
enterprise.
Equation: Assets = Liabilities + Owner's Equity.
,Q: Also called a balance sheet equation
Answer:
Addenda Glossary
plural form of addendum, a list of things to be added.
Addendum Glossary
change to a signed contract. During the bidding process, a formal change issued by
the project
owner to all identified bidders.
Alternative Dispute Resolution Glossary
Any means of settling disputes outside of the courtroom, without litigation.
ADR typically includes early neutral evaluation, negotiation, conciliation, mediation,
and
arbitration.
As-Built Drawings Glossary
A revised set of drawings submitted by contractor after completion of project.
Drawings show
dimensions, geometry, and location of all components.
Assignment of Contract Glossary
the legal transfer of the obligations and benefits of a contract from one party, called
the
assignor, to another, called the assignee.
Attractive Nuisance (Location) Glossary
Balance Sheet Equation 5-6 (Accounting) and (Glossary)
Also known as the accounting equation.
Assets = Liabilities + Owner's Equity
, Q: Business Entity Concept (Location) Glossary
Answer:
Cardinal Change Glossary
Change in which the purpose of the original agreement has been frustrated or made
impossible by the extent of the requested change.
Cost Plus Contract (Location) Glossary
Contractor is paid for actual cost of labor and materials plus a markup for overhead
and profit.
Conteroffer Glossary
A response given to an initial offer. A counteroffer means the original offer was
rejected and
replaced with another. A vague or conditional response to an offer may be interpreted
as a
counteroffer.
Current Liability Glossary
A debt or other obligation that must be paid or liquidated WITHIN ONE YEAR OR
OPERATING
CYCLE, and the payment or liquidation of which will require that use of presently
classified
current assets.
Depreciation Expense Glossary
Expense from the expiration of a plant asset's "quantity of usefulness"
Shown over periods that benefit from the asset's use.
ACCELERATED DEPRECIATION: depreciates an asset at a higher rate during the
early part of its
useful life to claim a higher tax deduction.
STRAIGHT-LINE DEPRECIATION: subtracts the salvage value from the purchase
price of the
asset and divides the amount evenly across a specified timeframe.
Deprciation Glossary
