FPC Payroll Fundamentals Exam | Verified Exam Questions and Answers
| Latest Updated Study Material 2026
Question:
Worker that has Fed, OASDI, Medicare, State withheld
Answer:
Employee
Question:
Worker that requires the employer to pay ER taxes
Answer:
Employee
Question:
Worker that receives W2 form
Answer:
Employee
Question:
Worker that does not have taxes withheld
Answer:
Independent
Contractor
Question:
Worker that has TIN
Answer:
Independent Contractor
Question:
Worker that receives 1099 Form
Answer:
Independent Contractor
,Question:
Asks how independent is the employee and how much control can be exervised over the worker.
Answer:
Common Law Test
Question:
A worker cannot sign a new contract stating that they will be an indepndent contractor.
Answer:
Common Law Test
Question:
Employer has treated similar workers as independent contractors for any period and has filed tax
returns
Answer:
Reasonable Basis Test
Question:
Longstanding industry standard of treating similar workers as independent contractors
Answer:
Reasonable Basis Test
Question:
Court decisions for treating workers in similar circumstances as independent contractors
Answer:
Reasonable Basis Test
Question:
IRS has ruled in a "published ruling" that the workers are indpendent contractors
Answer:
Reasonable Basis Test
Question:
Temporary Service Provider or Leasing Company
, Answer:
Pays
employees and taxes instead of company the employee is performing services for
Question:
Immigration reform and Control Act of 1986 (IRCA)
Answer:
Requires
employer to verify employees' eligibility for employment in the US.
Question:
Penalties for Violating IRCA
Answer:
$375 for the first offence and
$16,000 for the third
Question:
Antidiscrimination under IRCA
Answer:
The law prohibits
discrimination in hiring or recruiting workers on the basis of national origin or citizenship
Question:
Verification of eligitability
Answer:
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.
Question:
When must Section 1 of Form I-9 be completed?
Answer:
The
employee's date of hire.
| Latest Updated Study Material 2026
Question:
Worker that has Fed, OASDI, Medicare, State withheld
Answer:
Employee
Question:
Worker that requires the employer to pay ER taxes
Answer:
Employee
Question:
Worker that receives W2 form
Answer:
Employee
Question:
Worker that does not have taxes withheld
Answer:
Independent
Contractor
Question:
Worker that has TIN
Answer:
Independent Contractor
Question:
Worker that receives 1099 Form
Answer:
Independent Contractor
,Question:
Asks how independent is the employee and how much control can be exervised over the worker.
Answer:
Common Law Test
Question:
A worker cannot sign a new contract stating that they will be an indepndent contractor.
Answer:
Common Law Test
Question:
Employer has treated similar workers as independent contractors for any period and has filed tax
returns
Answer:
Reasonable Basis Test
Question:
Longstanding industry standard of treating similar workers as independent contractors
Answer:
Reasonable Basis Test
Question:
Court decisions for treating workers in similar circumstances as independent contractors
Answer:
Reasonable Basis Test
Question:
IRS has ruled in a "published ruling" that the workers are indpendent contractors
Answer:
Reasonable Basis Test
Question:
Temporary Service Provider or Leasing Company
, Answer:
Pays
employees and taxes instead of company the employee is performing services for
Question:
Immigration reform and Control Act of 1986 (IRCA)
Answer:
Requires
employer to verify employees' eligibility for employment in the US.
Question:
Penalties for Violating IRCA
Answer:
$375 for the first offence and
$16,000 for the third
Question:
Antidiscrimination under IRCA
Answer:
The law prohibits
discrimination in hiring or recruiting workers on the basis of national origin or citizenship
Question:
Verification of eligitability
Answer:
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.
Question:
When must Section 1 of Form I-9 be completed?
Answer:
The
employee's date of hire.
