AIPB Mastering Payroll Exam Questions With
Correct Answers
If |an |employer |unintentionally |misclassifies |an |employee |as |an |independent |contractor |and |
files |Form |1099-MISC, |the |tax |assessment |for |failure |to |withhold |federal |income |tax |is |equal |
to: |- |CORRECT |ANSWER✔✔-1.5% |of |the |wage |amount
On |which |form |are |wages |reported? |- |CORRECT |ANSWER✔✔-W-2 |
Due |on |for |Employee |copies |January |31
If |an |employer |wants |s |a |written |determination |from |the |IRS |on |a |worker's |status, |which |form |
should |it |submit? |- |CORRECT |ANSWER✔✔-SS-8
When |the |common-law |test |is |met, |an |individual |is |considered? |- |CORRECT |ANSWER✔✔-an |
employee
Nonemployee |compensation |is |reported |on |Form: |- |CORRECT |ANSWER✔✔-1099-MISC
Employer |payments |to |employees |for |services |rendered |are |called |- |CORRECT |ANSWER✔✔-
wages
Employer |payments |to |independent |contractors |are |made |as |ordinary |- |CORRECT |
ANSWER✔✔-payments
A |taxpayer |identification |number |supplied |by |an |independent |contractor |may |be |either |an |
individual's |___________ |____________ |number |or |a |company's |_____________ |
___________ |number. |- |CORRECT |ANSWER✔✔-social |security |, |employer |ID
, If |an |employer |wishes |to |obtain |a |written |determination |from |the |IRS |regarding |an |individual's
|worker |status, |it |can |submit |Form |_________________. |- |CORRECT |ANSWER✔✔-SS-8
While |an |employer |is |waiting |for |a |written |determination |of |an |individual's |worker |status |from
|the |IRS, |it |should |treat |the |individual |as |(a, |an) |__________________________ |- |CORRECT |
ANSWER✔✔-employee
If |an |employer |unintentionally |misclassifies |an |employee |as |an |independent |contractor |and |
also |fails |to |file |Form |1099-MISC, |the |tax |assessment |for |failure |to |withhold |FICA |tax |is |equal |
to |what |percentage |of |the |employee's |portion |of |Social |Security |and |Medicare |tax? |- |CORRECT
|ANSWER✔✔-40%
FLSA |- |CORRECT |ANSWER✔✔-Fair |Labor |Standards |Act |, |which |is |enforced |by |the |U.S. |
Department |of |Labor, |Wage |and |Hour |Division. |Employers |covered |by |the |FLSA |are |requited |to
|pay |a |minimum |hourly |wage |and |overtime |rate |to |all |covered |employees. |The |FLSA |defines |
the |hours |of |work |for |which |employees |must |be |paid.
For |2015, |if |a |nonemployee |fails |to |provide |a |TIN |and |is |paid |$400 |or |more |for |the |year, |what |
is |the |required |federal |backup |withholding |tax |rate |that |the |employer |must |use? |- |CORRECT |
ANSWER✔✔-28%
The |FLSA |is |silent |on |matters |concerning |the |method |and |____________ |of |wage |payments. |- |
CORRECT |ANSWER✔✔-frequency
Generally, |businesses |that |began |operations |after |March |31, |1990, |must |comply |with |the |FLSA
|if |gross |annual |sale |exceed |$__________. |- |CORRECT |ANSWER✔✔-500,000
State |laws |covering |the |treatment |of |unclaimed |wages |are |called |________________ |laws. |- |
CORRECT |ANSWER✔✔-escheat
Correct Answers
If |an |employer |unintentionally |misclassifies |an |employee |as |an |independent |contractor |and |
files |Form |1099-MISC, |the |tax |assessment |for |failure |to |withhold |federal |income |tax |is |equal |
to: |- |CORRECT |ANSWER✔✔-1.5% |of |the |wage |amount
On |which |form |are |wages |reported? |- |CORRECT |ANSWER✔✔-W-2 |
Due |on |for |Employee |copies |January |31
If |an |employer |wants |s |a |written |determination |from |the |IRS |on |a |worker's |status, |which |form |
should |it |submit? |- |CORRECT |ANSWER✔✔-SS-8
When |the |common-law |test |is |met, |an |individual |is |considered? |- |CORRECT |ANSWER✔✔-an |
employee
Nonemployee |compensation |is |reported |on |Form: |- |CORRECT |ANSWER✔✔-1099-MISC
Employer |payments |to |employees |for |services |rendered |are |called |- |CORRECT |ANSWER✔✔-
wages
Employer |payments |to |independent |contractors |are |made |as |ordinary |- |CORRECT |
ANSWER✔✔-payments
A |taxpayer |identification |number |supplied |by |an |independent |contractor |may |be |either |an |
individual's |___________ |____________ |number |or |a |company's |_____________ |
___________ |number. |- |CORRECT |ANSWER✔✔-social |security |, |employer |ID
, If |an |employer |wishes |to |obtain |a |written |determination |from |the |IRS |regarding |an |individual's
|worker |status, |it |can |submit |Form |_________________. |- |CORRECT |ANSWER✔✔-SS-8
While |an |employer |is |waiting |for |a |written |determination |of |an |individual's |worker |status |from
|the |IRS, |it |should |treat |the |individual |as |(a, |an) |__________________________ |- |CORRECT |
ANSWER✔✔-employee
If |an |employer |unintentionally |misclassifies |an |employee |as |an |independent |contractor |and |
also |fails |to |file |Form |1099-MISC, |the |tax |assessment |for |failure |to |withhold |FICA |tax |is |equal |
to |what |percentage |of |the |employee's |portion |of |Social |Security |and |Medicare |tax? |- |CORRECT
|ANSWER✔✔-40%
FLSA |- |CORRECT |ANSWER✔✔-Fair |Labor |Standards |Act |, |which |is |enforced |by |the |U.S. |
Department |of |Labor, |Wage |and |Hour |Division. |Employers |covered |by |the |FLSA |are |requited |to
|pay |a |minimum |hourly |wage |and |overtime |rate |to |all |covered |employees. |The |FLSA |defines |
the |hours |of |work |for |which |employees |must |be |paid.
For |2015, |if |a |nonemployee |fails |to |provide |a |TIN |and |is |paid |$400 |or |more |for |the |year, |what |
is |the |required |federal |backup |withholding |tax |rate |that |the |employer |must |use? |- |CORRECT |
ANSWER✔✔-28%
The |FLSA |is |silent |on |matters |concerning |the |method |and |____________ |of |wage |payments. |- |
CORRECT |ANSWER✔✔-frequency
Generally, |businesses |that |began |operations |after |March |31, |1990, |must |comply |with |the |FLSA
|if |gross |annual |sale |exceed |$__________. |- |CORRECT |ANSWER✔✔-500,000
State |laws |covering |the |treatment |of |unclaimed |wages |are |called |________________ |laws. |- |
CORRECT |ANSWER✔✔-escheat
