FPC Payroll Fundamentals UPDATED
ACTUAL Questions and CORRECT
Answers
Asks how independent is the employee and how much control can be exervised over the
worker. - CORRECT ANSWER✔✔- Common Law Test
A worker cannot sign a new contract stating that they will be an indepndent contractor. -
CORRECT ANSWER✔✔- Common Law Test
Employer has treated similar workers as independent contractors for any period and has filed
tax returns - CORRECT ANSWER✔✔- Reasonable Basis Test
Longstanding industry standard of treating similar workers as independent contractors -
CORRECT ANSWER✔✔- Reasonable Basis Test
Court decisions for treating workers in similar circumstances as independent contractors -
CORRECT ANSWER✔✔- Reasonable Basis Test
IRS has ruled in a "published ruling" that the workers are indpendent contractors -
CORRECT ANSWER✔✔- Reasonable Basis Test
Penalties for Violating IRCA - CORRECT ANSWER✔✔- $375 for the first offence and
$16,000 for the third
When must Section 1 of Form I-9 be completed? - CORRECT ANSWER✔✔- The
employee's date of hire.
When must Section 2 of Form 1-9 be completed? - CORRECT ANSWER✔✔- Within three
days of hiring the employee.
Form SS-5 - CORRECT ANSWER✔✔- Application for a social security card
, Form I-9 - CORRECT ANSWER✔✔- Employment Eligitability Verification
Employee SSN verification is... - CORRECT ANSWER✔✔- recommended but not required.
What information must an employer report for new hires? - CORRECT ANSWER✔✔-
Name, Date of Hire, Address, SS, Employer's Name, Address, and EIN
Fair Labor Standards Act of 1938 (FLSA) - CORRECT ANSWER✔✔- Guarantees
employees a minimum wage, requires employers to pay an overtime premium, limits when
minors can work, and provides equal pay protection.
Who is protected by FLSA? - CORRECT ANSWER✔✔- Nonexempt employees
Minimum weekly salary required for exempt employees - CORRECT ANSWER✔✔- $455
4 categories of exempt employees - CORRECT ANSWER✔✔- Executives, Administrative
Employee, Professional, Outside Sales People
Special FLSA provisions exist for... - CORRECT ANSWER✔✔- Various transportation
workers, agricultural workers, hospital employees, and public sector employees.
Automated clearing house (ACH)- - CORRECT ANSWER✔✔- An entity which serves as
the central agency for processing and transferring funds from one financial institution to
another via electronic data transmission. ACHs operate under rules and standards established
by the National Automated Clearing House Association (NACHA)
Circular E - CORRECT ANSWER✔✔- Employer's Tax Guide (IRS Publication 15). The
basic IRS reference. Provides explanation and illustration of an employer's federal tax
withholding, depositing, and reporting obligations. Circular E provides information relevant
to all employers, while Publication 15-A, Employer's Supplemental Tax Guide , is intended to
provide additional information required by larger employers.
ACTUAL Questions and CORRECT
Answers
Asks how independent is the employee and how much control can be exervised over the
worker. - CORRECT ANSWER✔✔- Common Law Test
A worker cannot sign a new contract stating that they will be an indepndent contractor. -
CORRECT ANSWER✔✔- Common Law Test
Employer has treated similar workers as independent contractors for any period and has filed
tax returns - CORRECT ANSWER✔✔- Reasonable Basis Test
Longstanding industry standard of treating similar workers as independent contractors -
CORRECT ANSWER✔✔- Reasonable Basis Test
Court decisions for treating workers in similar circumstances as independent contractors -
CORRECT ANSWER✔✔- Reasonable Basis Test
IRS has ruled in a "published ruling" that the workers are indpendent contractors -
CORRECT ANSWER✔✔- Reasonable Basis Test
Penalties for Violating IRCA - CORRECT ANSWER✔✔- $375 for the first offence and
$16,000 for the third
When must Section 1 of Form I-9 be completed? - CORRECT ANSWER✔✔- The
employee's date of hire.
When must Section 2 of Form 1-9 be completed? - CORRECT ANSWER✔✔- Within three
days of hiring the employee.
Form SS-5 - CORRECT ANSWER✔✔- Application for a social security card
, Form I-9 - CORRECT ANSWER✔✔- Employment Eligitability Verification
Employee SSN verification is... - CORRECT ANSWER✔✔- recommended but not required.
What information must an employer report for new hires? - CORRECT ANSWER✔✔-
Name, Date of Hire, Address, SS, Employer's Name, Address, and EIN
Fair Labor Standards Act of 1938 (FLSA) - CORRECT ANSWER✔✔- Guarantees
employees a minimum wage, requires employers to pay an overtime premium, limits when
minors can work, and provides equal pay protection.
Who is protected by FLSA? - CORRECT ANSWER✔✔- Nonexempt employees
Minimum weekly salary required for exempt employees - CORRECT ANSWER✔✔- $455
4 categories of exempt employees - CORRECT ANSWER✔✔- Executives, Administrative
Employee, Professional, Outside Sales People
Special FLSA provisions exist for... - CORRECT ANSWER✔✔- Various transportation
workers, agricultural workers, hospital employees, and public sector employees.
Automated clearing house (ACH)- - CORRECT ANSWER✔✔- An entity which serves as
the central agency for processing and transferring funds from one financial institution to
another via electronic data transmission. ACHs operate under rules and standards established
by the National Automated Clearing House Association (NACHA)
Circular E - CORRECT ANSWER✔✔- Employer's Tax Guide (IRS Publication 15). The
basic IRS reference. Provides explanation and illustration of an employer's federal tax
withholding, depositing, and reporting obligations. Circular E provides information relevant
to all employers, while Publication 15-A, Employer's Supplemental Tax Guide , is intended to
provide additional information required by larger employers.
