FPC Payroll Fundamentals Exam Questions
and Answers with Verified Solutions | Latest
Updated 2026
Worker that has Fed, OASDI, Employee
Medicare, State withheld
Worker that requires the employer Employee
to pay ER taxes
Worker that receives W2 form Employee
Worker that does not have taxes Independent Contractor
withheld
Worker that has TIN Independent Contractor
Worker that receives 1099 Form Independent Contractor
Asks how independent is the Common Law Test
employee and how much control
can be exervised over the worker.
A worker cannot sign a new Common Law Test
contract stating that they will be an
indepndent contractor.
,Employer has treated similar Reasonable Basis Test
workers as independent
contractors for any period and has
filed tax returns
Longstanding industry standard of Reasonable Basis Test
treating similar workers as
independent contractors
Court decisions for treating Reasonable Basis Test
workers
in similar circumstances as
independent contractors
IRS has ruled in a "published Reasonable Basis Test
ruling"
that the workers are indpendent
contractors
Temporary Service Provider or Pays employees and taxes instead of
Leasing Company company
the employee is performing services for
Immigration reform and Control Requires employer to verify employees'
Act eligibility
of 1986 (IRCA) for employment in the US.
Penalties for Violating IRCA $375 for the first offence and $16,000 for
the third
, Antidiscrimination under IRCA The law prohibits discrimination in hiring or
recruiting workers on the basis of national
origin
or citizenship
Verification of eligitability 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 The employee's date of hire.
be
completed?
When must Section 2 of Form 1-9 Within three days of hiring the employee.
be completed?
Form SS-5 Application for a social security card
Form I-9 Employment Eligitability Verification
Employee SSN verification is... recommended but not required.
What information must an Name, Date of Hire, Address, SS,
employer Employer's
report for new hires? Name, Address, and EIN
and Answers with Verified Solutions | Latest
Updated 2026
Worker that has Fed, OASDI, Employee
Medicare, State withheld
Worker that requires the employer Employee
to pay ER taxes
Worker that receives W2 form Employee
Worker that does not have taxes Independent Contractor
withheld
Worker that has TIN Independent Contractor
Worker that receives 1099 Form Independent Contractor
Asks how independent is the Common Law Test
employee and how much control
can be exervised over the worker.
A worker cannot sign a new Common Law Test
contract stating that they will be an
indepndent contractor.
,Employer has treated similar Reasonable Basis Test
workers as independent
contractors for any period and has
filed tax returns
Longstanding industry standard of Reasonable Basis Test
treating similar workers as
independent contractors
Court decisions for treating Reasonable Basis Test
workers
in similar circumstances as
independent contractors
IRS has ruled in a "published Reasonable Basis Test
ruling"
that the workers are indpendent
contractors
Temporary Service Provider or Pays employees and taxes instead of
Leasing Company company
the employee is performing services for
Immigration reform and Control Requires employer to verify employees'
Act eligibility
of 1986 (IRCA) for employment in the US.
Penalties for Violating IRCA $375 for the first offence and $16,000 for
the third
, Antidiscrimination under IRCA The law prohibits discrimination in hiring or
recruiting workers on the basis of national
origin
or citizenship
Verification of eligitability 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 The employee's date of hire.
be
completed?
When must Section 2 of Form 1-9 Within three days of hiring the employee.
be completed?
Form SS-5 Application for a social security card
Form I-9 Employment Eligitability Verification
Employee SSN verification is... recommended but not required.
What information must an Name, Date of Hire, Address, SS,
employer Employer's
report for new hires? Name, Address, and EIN
