FPC Exam Chapter 1 UPDATED Exam
Questions and CORRECT Answers
Challenges - CORRECT ANSWER - 1. Accuracy
2. Complexity
3. Communication
4. Technology
Payroll Process: Employee - CORRECT ANSWER - New Hire
Changes
Time Data
w4
I9
Payroll Process: Payroll - CORRECT ANSWER - Inputs
Verifies
Processes
Distributes
Reconciles
Payroll Process: Government - CORRECT ANSWER - Tax Deposits
Periodic Reports
Reconciles
Payroll Process: Employee - CORRECT ANSWER - Pay Statements
W2
, Common Law - CORRECT ANSWER - How independent is the employee? How much
control can be exercised over the worker?
** File SS-8, Determination Status
Reasonable Basis Test - CORRECT ANSWER - Exceptions to common law test ..
-Consistently treated them as 1099 and filed tax returns
- Longstanding, recognized practice in specific industry of treating similar workers as
independent contractors (ex personal trainer)
- Court decision
- IRS ruled SS8
- Past IRS audit that did not disallow the workers to be treated as 1099
IRCA 1986 - CORRECT ANSWER - Immigration Reform and Control Act
Requires employers to verify employees eligibility to work
When does the I9 form need to be completed by? - CORRECT ANSWER - First day of
work
When does the employer need to review the I9 by? - CORRECT ANSWER - Within 3 day
How long does and I9 need to be kept for? - CORRECT ANSWER - 3 years from date of
hire or one year from term, longer one
DHS - CORRECT ANSWER - Department Homeland Scurity
Questions and CORRECT Answers
Challenges - CORRECT ANSWER - 1. Accuracy
2. Complexity
3. Communication
4. Technology
Payroll Process: Employee - CORRECT ANSWER - New Hire
Changes
Time Data
w4
I9
Payroll Process: Payroll - CORRECT ANSWER - Inputs
Verifies
Processes
Distributes
Reconciles
Payroll Process: Government - CORRECT ANSWER - Tax Deposits
Periodic Reports
Reconciles
Payroll Process: Employee - CORRECT ANSWER - Pay Statements
W2
, Common Law - CORRECT ANSWER - How independent is the employee? How much
control can be exercised over the worker?
** File SS-8, Determination Status
Reasonable Basis Test - CORRECT ANSWER - Exceptions to common law test ..
-Consistently treated them as 1099 and filed tax returns
- Longstanding, recognized practice in specific industry of treating similar workers as
independent contractors (ex personal trainer)
- Court decision
- IRS ruled SS8
- Past IRS audit that did not disallow the workers to be treated as 1099
IRCA 1986 - CORRECT ANSWER - Immigration Reform and Control Act
Requires employers to verify employees eligibility to work
When does the I9 form need to be completed by? - CORRECT ANSWER - First day of
work
When does the employer need to review the I9 by? - CORRECT ANSWER - Within 3 day
How long does and I9 need to be kept for? - CORRECT ANSWER - 3 years from date of
hire or one year from term, longer one
DHS - CORRECT ANSWER - Department Homeland Scurity
