Social Science Law Civil Law
CERTIFIED PAYROLL PROFESSIONAL (CPP)
FINAL EXAM AND PRACTICE QUESTIONS
EXAM COMPLETE 450 QUESTIONS WITH
DETAILED VERIFIED ANSWERS (100% CORRECT
ANSWERS) /ALREADY GRADED A+
Leave the first rating
Terms in this set (100)
1. Behavioral Control- Right to direct and control the
details and means by which the worker will perform
the tasks.
A. Level of Instruction
List the factors used
B. Level of Training
under the Common Law
2. Financial Control- Dictates the payment
Test in determining
A. Hourly rate- Most likely employee
whether a business has
B. Paid by the project- could be an independent
the right to control the
contractor.
financial aspects of a
C. Who abosorbs most of the costs/takes most
workers activities.
risks?
3. Type of Relationship- Written
agreements/contracts stating the worker is an
independent contractor does not make it so...
What are the two 1. Real Estate Agents
categories for Statutory 2. Direct Sellers
Nonemployees?
, 1. Agent/commission drivers
2. Full Time Life Insurance Agents
*exempt from FUTA ONLY if all earnings are from
commissions
What are the 4
categories of Statutory 3. Homemakers
Employees? *Works away from ERs location
-Assembles items at home
-Stuffs evelopes at home
-Type transcripts at home
4. Traveling/City Salespersons
Employer Control: The more control, the more likely
an employee.
-Who does it?
What is Common Law
-What is done?
Test?
-How does it get done?
-When does it get done?
-Who furnishes tools, supplies, work location?
-Who sets salary rate?
Even though a worker meets the definition of an
employee under the common law test, an employer
What is Reasonable Basis
may treat a worker as an independent contractor
Test?
exempt from federal payroll tax laws if it has a
reasonble basis.
1. Court decisions, published IRS rulings, IRS
technical advice or a private letter ruling from the
IRS or,
List the factors for the
2. A past IRS audit of the employer or,
Reasonable Basis Test.
3. A longstanding, recognized practice in the
employers industry that treats workers in similar
situations as independent contractors.
, Temp workers are hired, screened and trained by
the temp help agency to provide services for
What is a temporary help clients. They are employees of the temp agency
agency employee? which sets their wages and has sole right to hire and
fire. The agency is alsor responsible for all payroll
taxes.
Leased employees are hired, trained, and qualified
by a leasing company which provides workers for a
client company. The client pays a fee to the leasing
What is a leased company to cover the cost of payroll, benefits, etc...
employee? Responsibility for payroll taxes depends on the
degree of control exercised by the client over the
employees work and which entity has control over
the payment of their wages.
When leasing an Employers should make sure they are dealing with a
employee or using a financially secure and reputable company before
temp agency, what entering into a contract, since the temp agency or
should you know about leasing company's financial failure could lead to the
the overall company that client company becoming liable for any withholding
you are dealing with to or employement taxes that remain unpaid.
avoid having to pay any
withholding or
employment taxes?
1. (Absence Control): Free from control via
agreement and in reality.
2. (Business- unusual and/or away): performed
What are the three parts
outside the usual course of company business or
of the ABC test?
away from employers facility
3. (Customarily independent contractor):
independent trade, occupation or business
While many states use the Common Law Test to
determine an employee relationship, more than half
What is the ABC test use the ABC Test. ABC test is used by many states to
used to determine? determine a worker's employement status under
state unemployment insurance laws to see if the
employee is indeed an independent contractor.
CERTIFIED PAYROLL PROFESSIONAL (CPP)
FINAL EXAM AND PRACTICE QUESTIONS
EXAM COMPLETE 450 QUESTIONS WITH
DETAILED VERIFIED ANSWERS (100% CORRECT
ANSWERS) /ALREADY GRADED A+
Leave the first rating
Terms in this set (100)
1. Behavioral Control- Right to direct and control the
details and means by which the worker will perform
the tasks.
A. Level of Instruction
List the factors used
B. Level of Training
under the Common Law
2. Financial Control- Dictates the payment
Test in determining
A. Hourly rate- Most likely employee
whether a business has
B. Paid by the project- could be an independent
the right to control the
contractor.
financial aspects of a
C. Who abosorbs most of the costs/takes most
workers activities.
risks?
3. Type of Relationship- Written
agreements/contracts stating the worker is an
independent contractor does not make it so...
What are the two 1. Real Estate Agents
categories for Statutory 2. Direct Sellers
Nonemployees?
, 1. Agent/commission drivers
2. Full Time Life Insurance Agents
*exempt from FUTA ONLY if all earnings are from
commissions
What are the 4
categories of Statutory 3. Homemakers
Employees? *Works away from ERs location
-Assembles items at home
-Stuffs evelopes at home
-Type transcripts at home
4. Traveling/City Salespersons
Employer Control: The more control, the more likely
an employee.
-Who does it?
What is Common Law
-What is done?
Test?
-How does it get done?
-When does it get done?
-Who furnishes tools, supplies, work location?
-Who sets salary rate?
Even though a worker meets the definition of an
employee under the common law test, an employer
What is Reasonable Basis
may treat a worker as an independent contractor
Test?
exempt from federal payroll tax laws if it has a
reasonble basis.
1. Court decisions, published IRS rulings, IRS
technical advice or a private letter ruling from the
IRS or,
List the factors for the
2. A past IRS audit of the employer or,
Reasonable Basis Test.
3. A longstanding, recognized practice in the
employers industry that treats workers in similar
situations as independent contractors.
, Temp workers are hired, screened and trained by
the temp help agency to provide services for
What is a temporary help clients. They are employees of the temp agency
agency employee? which sets their wages and has sole right to hire and
fire. The agency is alsor responsible for all payroll
taxes.
Leased employees are hired, trained, and qualified
by a leasing company which provides workers for a
client company. The client pays a fee to the leasing
What is a leased company to cover the cost of payroll, benefits, etc...
employee? Responsibility for payroll taxes depends on the
degree of control exercised by the client over the
employees work and which entity has control over
the payment of their wages.
When leasing an Employers should make sure they are dealing with a
employee or using a financially secure and reputable company before
temp agency, what entering into a contract, since the temp agency or
should you know about leasing company's financial failure could lead to the
the overall company that client company becoming liable for any withholding
you are dealing with to or employement taxes that remain unpaid.
avoid having to pay any
withholding or
employment taxes?
1. (Absence Control): Free from control via
agreement and in reality.
2. (Business- unusual and/or away): performed
What are the three parts
outside the usual course of company business or
of the ABC test?
away from employers facility
3. (Customarily independent contractor):
independent trade, occupation or business
While many states use the Common Law Test to
determine an employee relationship, more than half
What is the ABC test use the ABC Test. ABC test is used by many states to
used to determine? determine a worker's employement status under
state unemployment insurance laws to see if the
employee is indeed an independent contractor.
