FPC Payroll Fundamentals Exam
Questions and Answers 100% Pass
Worker that has Fed, OASDI, Medicare, State withheld - ✔✔Employee
Worker that requires the employer to pay ER taxes - ✔✔Employee
Worker that receives W2 form - ✔✔Employee
Worker that does not have taxes withheld - ✔✔Independent Contractor
Worker that has TIN - ✔✔Independent Contractor
Worker that receives 1099 Form - ✔✔Independent Contractor
Asks how independent is the employee and how much control can be exervised over
the worker. - ✔✔Common Law Test
A worker cannot sign a new contract stating that they will be an indepndent contractor.
- ✔✔Common Law Test
Employer has treated similar workers as independent contractors for any period and
has filed tax returns - ✔✔Reasonable Basis Test
Katelyn Whitman, All Rights Reserved © 2025 1
, Longstanding industry standard of treating similar workers as independent contractors
- ✔✔Reasonable Basis Test
Court decisions for treating workers in similar circumstances as independent
contractors - ✔✔Reasonable Basis Test
IRS has ruled in a "published ruling" that the workers are indpendent contractors -
✔✔Reasonable Basis Test
Temporary Service Provider or Leasing Company - ✔✔Pays employees and taxes
instead of company the employee is performing services for
Immigration reform and Control Act of 1986 (IRCA) - ✔✔Requires employer to verify
employees' eligibility 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 be completed? - ✔✔The employee's date of hire.
Katelyn Whitman, All Rights Reserved © 2025 2
Questions and Answers 100% Pass
Worker that has Fed, OASDI, Medicare, State withheld - ✔✔Employee
Worker that requires the employer to pay ER taxes - ✔✔Employee
Worker that receives W2 form - ✔✔Employee
Worker that does not have taxes withheld - ✔✔Independent Contractor
Worker that has TIN - ✔✔Independent Contractor
Worker that receives 1099 Form - ✔✔Independent Contractor
Asks how independent is the employee and how much control can be exervised over
the worker. - ✔✔Common Law Test
A worker cannot sign a new contract stating that they will be an indepndent contractor.
- ✔✔Common Law Test
Employer has treated similar workers as independent contractors for any period and
has filed tax returns - ✔✔Reasonable Basis Test
Katelyn Whitman, All Rights Reserved © 2025 1
, Longstanding industry standard of treating similar workers as independent contractors
- ✔✔Reasonable Basis Test
Court decisions for treating workers in similar circumstances as independent
contractors - ✔✔Reasonable Basis Test
IRS has ruled in a "published ruling" that the workers are indpendent contractors -
✔✔Reasonable Basis Test
Temporary Service Provider or Leasing Company - ✔✔Pays employees and taxes
instead of company the employee is performing services for
Immigration reform and Control Act of 1986 (IRCA) - ✔✔Requires employer to verify
employees' eligibility 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 be completed? - ✔✔The employee's date of hire.
Katelyn Whitman, All Rights Reserved © 2025 2
