COMPLETE STUDY GUIDE WITH VERIFIED
QUESTIONS & ACCURATE ANSWERS
1. A general contractor hires a subcontractor that does not carry the required
workers compensation insurance coverage in the state where the work is
being performed. If an employee of the subcontractor is injured on the job,
which one of the following is correct?
The injured worker can be deemed a statutory employee of the
general contractor and can be eligible for workers compensation
benefits from the general contractor.
The injured worker can bring a tort action against both the general
contractor and the subcontractor, but the subcontractor will not be
able to assert any of its common-law defenses.
Exclusive remedy doctrine holds that the injured worker may only
obtain recovery from his or her direct employer, in this case, the
subcontractor.
The contractor can only be held responsible for the injured workers
compensation benefits if the subcontractor did not produce a
certificate of insurance.
2. What does FICA stand for in the context of employment law?
Federal Income Contribution Act
Federal Insurance Contributions Act
Federal Insurance Collection Act
, Federal Income Collection Act
3. If you hire a neighbor to mow your lawn for $40, what is your liability
regarding State unemployment taxes?
, You need to report the payment to the IRS.
You are not liable for State unemployment taxes.
You must pay State unemployment taxes on that amount.
You must provide a 1099 form for the payment.
4. If a business operates in multiple cities, what should the owner consider
regarding business licenses?
The owner can operate without a license if the business is online.
The owner should only focus on state-level licensing requirements.
The owner only needs a license from the city of headquarters.
The owner must obtain licenses in each city or county where the
business has a physical presence.
5. What is the maximum weekly benefit amount an employee can receive due
to a disability?
$300
$700
$400
$500
6. What document provides the Federal Tax tables for employers?
Circular E
Form W-2
Circular A
Form 1040
, 7. What percentage credit do employers receive against the FUTA owed for
timely payment of State unemployment taxes?
4.2%
6.0%
7.5%
5.4%
8. Who is responsible for paying unemployment taxes at both the state and
federal levels?
the employer
the contractor
the employee
the government
9. The law requires employers to provide workers compensation. Who pays
the insurance premiums for workers compensation in most states?
The federal government
The employer
The employee
The state government
10. What is one of the conditions that must be met to qualify for
unemployment benefits?
Must have earned enough money in the base period.
Must have a permanent job offer.