FPC Payroll Fundamentals
Comprehensive Questions
(Frequently Most Tested) with
Verified Answers
Worker that has Fed, OASDI, Medicare, State withheld - Answer: Employee
Worker that requires the employer to pay ER taxes - Answer: Employee
Worker that receives W2 form - Answer: Employee
Worker that does not have taxes withheld - Answer: Independent Contractor
Worker that has TIN - Answer: Independent Contractor
Worker that receives 1099 Form - Answer: Independent Contractor
Asks how independent is the employee and how much control can be exervised over the worker. -
Answer: Common Law Test
A worker cannot sign a new contract stating that they will be an indepndent contractor. - Answer:
Common Law Test
Employer has treated similar workers as independent contractors for any period and has filed tax
returns - Answer: Reasonable Basis Test
Longstanding industry standard of treating similar workers as independent contractors - Answer:
Reasonable Basis Test
, Court decisions for treating workers in similar circumstances as independent contractors - Answer:
Reasonable Basis Test
IRS has ruled in a "published ruling" that the workers are indpendent contractors - Answer: Reasonable
Basis Test
Temporary Service Provider or Leasing Company - Answer: Pays employees and taxes instead of
company the employee is performing services for
Immigration reform and Control Act of 1986 (IRCA) - Answer: Requires employer to verify employees'
eligibility for employment in the US.
Penalties for Violating IRCA - Answer: $375 for the first offence and $16,000 for the third
Antidiscrimination under IRCA - Answer: The law prohibits discrimination in hiring or recruiting workers
on the basis of national origin or citizenship
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.
When must Section 1 of Form I-9 be completed? - Answer: The employee's date of hire.
When must Section 2 of Form 1-9 be completed? - Answer: Within three days of hiring the employee.
Form SS-5 - Answer: Application for a social security card
Form I-9 - Answer: Employment Eligitability Verification
Employee SSN verification is... - Answer: recommended but not required.
Comprehensive Questions
(Frequently Most Tested) with
Verified Answers
Worker that has Fed, OASDI, Medicare, State withheld - Answer: Employee
Worker that requires the employer to pay ER taxes - Answer: Employee
Worker that receives W2 form - Answer: Employee
Worker that does not have taxes withheld - Answer: Independent Contractor
Worker that has TIN - Answer: Independent Contractor
Worker that receives 1099 Form - Answer: Independent Contractor
Asks how independent is the employee and how much control can be exervised over the worker. -
Answer: Common Law Test
A worker cannot sign a new contract stating that they will be an indepndent contractor. - Answer:
Common Law Test
Employer has treated similar workers as independent contractors for any period and has filed tax
returns - Answer: Reasonable Basis Test
Longstanding industry standard of treating similar workers as independent contractors - Answer:
Reasonable Basis Test
, Court decisions for treating workers in similar circumstances as independent contractors - Answer:
Reasonable Basis Test
IRS has ruled in a "published ruling" that the workers are indpendent contractors - Answer: Reasonable
Basis Test
Temporary Service Provider or Leasing Company - Answer: Pays employees and taxes instead of
company the employee is performing services for
Immigration reform and Control Act of 1986 (IRCA) - Answer: Requires employer to verify employees'
eligibility for employment in the US.
Penalties for Violating IRCA - Answer: $375 for the first offence and $16,000 for the third
Antidiscrimination under IRCA - Answer: The law prohibits discrimination in hiring or recruiting workers
on the basis of national origin or citizenship
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.
When must Section 1 of Form I-9 be completed? - Answer: The employee's date of hire.
When must Section 2 of Form 1-9 be completed? - Answer: Within three days of hiring the employee.
Form SS-5 - Answer: Application for a social security card
Form I-9 - Answer: Employment Eligitability Verification
Employee SSN verification is... - Answer: recommended but not required.
