Page | 1
FPC Payroll Fundamentals Questions and
Answers (Expert Solutions)
Q: Worker that has Fed, OASDI, Medicare, State withheld
ANS 🗹🗹: Employee
Q: Worker that requires the employer to pay ER taxes
ANS 🗹🗹: Employee
Q: Worker that receives W2 form
ANS 🗹🗹: Employee
Q: Worker that does not have taxes withheld
ANS 🗹🗹: Independent Contractor
Q: Worker that has TIN
ANS 🗹🗹: Independent Contractor
Q: Worker that receives 1099 Form
ANS 🗹🗹: Independent Contractor
Q: Asks how independent is the employee and how much control can be exervised over
the worker.
ANS 🗹🗹: Common Law Test
Q: A worker cannot sign a new contract stating that they will be an indepndent
contractor.
ANS 🗹🗹: Common Law Test
, Page | 2
Q: Employer has treated similar workers as independent contractors for any period and
has filed tax returns
ANS 🗹🗹: Reasonable Basis Test
Q: Longstanding industry standard of treating similar workers as independent
contractors
ANS 🗹🗹: Reasonable Basis Test
Q: Court decisions for treating workers in similar circumstances as independent
contractors
ANS 🗹🗹: Reasonable Basis Test
Q: IRS has ruled in a "published ruling" that the workers are indpendent contractors
ANS 🗹🗹: Reasonable Basis Test
Q: Temporary Service Provider or Leasing Company
ANS 🗹🗹: Pays employees and taxes instead of company the employee is performing
services for
Q: Immigration reform and Control Act of 1986 (IRCA)
ANS 🗹🗹: Requires employer to verify employees' eligibility for employment in the
US.
Q: Penalties for Violating IRCA
ANS 🗹🗹: $375 for the first offence and $16,000 for the third
Q: Antidiscrimination under IRCA
ANS 🗹🗹: The law prohibits discrimination in hiring or recruiting workers on the
basis of national origin or citizenship
Q: Verification of eligitability
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ANS 🗹🗹: 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.
Q: When must Section 1 of Form I-9 be completed?
ANS 🗹🗹: The employee's date of hire.
Q: When must Section 2 of Form 1-9 be completed?
ANS 🗹🗹: Within three days of hiring the employee.
Q: Form SS-5
ANS 🗹🗹: Application for a social security card
Q: Form I-9
ANS 🗹🗹: Employment Eligitability Verification
Q: Employee SSN verification is...
ANS 🗹🗹: recommended but not required.
Q: What information must an employer report for new hires?
ANS 🗹🗹: Name, Date of Hire, Address, SS, Employer's Name, Address, and EIN
Q: Fair Labor Standards Act of 1938 (FLSA)
ANS 🗹🗹: Guarantees employees a minimum wage, requires employers to pay an
overtime premium, limits when minors can work, and provides equal pay
protection.
Q: Who is protected by FLSA?
ANS 🗹🗹: Nonexempt employees
Q: Minimum weekly salary required for exempt employees
ANS 🗹🗹: $455
Q: 4 categories of exempt employees
FPC Payroll Fundamentals Questions and
Answers (Expert Solutions)
Q: Worker that has Fed, OASDI, Medicare, State withheld
ANS 🗹🗹: Employee
Q: Worker that requires the employer to pay ER taxes
ANS 🗹🗹: Employee
Q: Worker that receives W2 form
ANS 🗹🗹: Employee
Q: Worker that does not have taxes withheld
ANS 🗹🗹: Independent Contractor
Q: Worker that has TIN
ANS 🗹🗹: Independent Contractor
Q: Worker that receives 1099 Form
ANS 🗹🗹: Independent Contractor
Q: Asks how independent is the employee and how much control can be exervised over
the worker.
ANS 🗹🗹: Common Law Test
Q: A worker cannot sign a new contract stating that they will be an indepndent
contractor.
ANS 🗹🗹: Common Law Test
, Page | 2
Q: Employer has treated similar workers as independent contractors for any period and
has filed tax returns
ANS 🗹🗹: Reasonable Basis Test
Q: Longstanding industry standard of treating similar workers as independent
contractors
ANS 🗹🗹: Reasonable Basis Test
Q: Court decisions for treating workers in similar circumstances as independent
contractors
ANS 🗹🗹: Reasonable Basis Test
Q: IRS has ruled in a "published ruling" that the workers are indpendent contractors
ANS 🗹🗹: Reasonable Basis Test
Q: Temporary Service Provider or Leasing Company
ANS 🗹🗹: Pays employees and taxes instead of company the employee is performing
services for
Q: Immigration reform and Control Act of 1986 (IRCA)
ANS 🗹🗹: Requires employer to verify employees' eligibility for employment in the
US.
Q: Penalties for Violating IRCA
ANS 🗹🗹: $375 for the first offence and $16,000 for the third
Q: Antidiscrimination under IRCA
ANS 🗹🗹: The law prohibits discrimination in hiring or recruiting workers on the
basis of national origin or citizenship
Q: Verification of eligitability
, Page | 3
ANS 🗹🗹: 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.
Q: When must Section 1 of Form I-9 be completed?
ANS 🗹🗹: The employee's date of hire.
Q: When must Section 2 of Form 1-9 be completed?
ANS 🗹🗹: Within three days of hiring the employee.
Q: Form SS-5
ANS 🗹🗹: Application for a social security card
Q: Form I-9
ANS 🗹🗹: Employment Eligitability Verification
Q: Employee SSN verification is...
ANS 🗹🗹: recommended but not required.
Q: What information must an employer report for new hires?
ANS 🗹🗹: Name, Date of Hire, Address, SS, Employer's Name, Address, and EIN
Q: Fair Labor Standards Act of 1938 (FLSA)
ANS 🗹🗹: Guarantees employees a minimum wage, requires employers to pay an
overtime premium, limits when minors can work, and provides equal pay
protection.
Q: Who is protected by FLSA?
ANS 🗹🗹: Nonexempt employees
Q: Minimum weekly salary required for exempt employees
ANS 🗹🗹: $455
Q: 4 categories of exempt employees
