Page 1 of 124
FPC EXAM AND PRACTICE EXAM NEWEST 2025 TEST
BANK| COMPLETE 550 REAL EXAM QUESTIONS AND
CORRECT DETAILED ANSWERS (VERIFIED ANSWERS)
GRADED A+| FUNDAMENTAL PAYROLL
CERTIFICATION EXAM PREP 2025 (BRAND NEW!!)
payroll .....ANSWER..... The process used to pay employees
accurately and on time
Employee Federal Withholding Taxes .....ANSWER..... Federal
income tax, social security tax, medicare
Independent Contractor .....ANSWER..... any person who agrees
to perform a service for a fee and who is not subject to the
control of those for whom the service is performed
Independent Contractors .....ANSWER..... hired on temporary
contracts and are not part of the organization's permanent
workforce
,Page 2 of 124
Common Law Test .....ANSWER..... A test to determine
employment status that focuses on the hiring principal's right to
control the manner and means by which the worker pursues the
work result to be accomplished
Common Law Test - Employee .....ANSWER..... - Required to
comply with employer instructions about when, where, and how to
work
- Works exclusively for the employer
- Hired by the employer
- Subject to dismissal and can quit without liability
- Has a continuing relationship with the employer
- Assigned work must be completed by the employee
- Performs services under the company's name
- Paid a salary, reimbursed expenses, participated in company's
fringe benefits
,Page 3 of 124
- Given tools, equipment, training, and materials to perform job
-If an outside sales person - the company provides leads, sets
terms, assigns territory, and controls the sales process
Common Law Test - Independent Contractor .....ANSWER..... -
Sets own hours and determines their own work sequence
- Can work for multiple employers and their services are
available to the public
- Is self-employed
- Governs how the contract relationship can be severed
- Works by the job
- Permitted to employ assistants
- Performs services under their own name
- Payment by the job
- Provides their own tools, equipment, and training
, Page 4 of 124
- Controls their own sales process and terms
Reasonable Basis Test .....ANSWER..... The exception to the
Common Law Test
Employers can classify a worker as an independent contractor if
the worker meets the following requirement:
- if the employer files a 1099 on behalf of the worker
- there is a longstanding and recognized practice in a significant
segment of the employer's industry of treating similar workers as
independent contractors
- Judicial precedent of treating workers in similar circumstances
as independent contractors
- IRS has ruled in a "published ruling" that the workers are
independent contractors
FPC EXAM AND PRACTICE EXAM NEWEST 2025 TEST
BANK| COMPLETE 550 REAL EXAM QUESTIONS AND
CORRECT DETAILED ANSWERS (VERIFIED ANSWERS)
GRADED A+| FUNDAMENTAL PAYROLL
CERTIFICATION EXAM PREP 2025 (BRAND NEW!!)
payroll .....ANSWER..... The process used to pay employees
accurately and on time
Employee Federal Withholding Taxes .....ANSWER..... Federal
income tax, social security tax, medicare
Independent Contractor .....ANSWER..... any person who agrees
to perform a service for a fee and who is not subject to the
control of those for whom the service is performed
Independent Contractors .....ANSWER..... hired on temporary
contracts and are not part of the organization's permanent
workforce
,Page 2 of 124
Common Law Test .....ANSWER..... A test to determine
employment status that focuses on the hiring principal's right to
control the manner and means by which the worker pursues the
work result to be accomplished
Common Law Test - Employee .....ANSWER..... - Required to
comply with employer instructions about when, where, and how to
work
- Works exclusively for the employer
- Hired by the employer
- Subject to dismissal and can quit without liability
- Has a continuing relationship with the employer
- Assigned work must be completed by the employee
- Performs services under the company's name
- Paid a salary, reimbursed expenses, participated in company's
fringe benefits
,Page 3 of 124
- Given tools, equipment, training, and materials to perform job
-If an outside sales person - the company provides leads, sets
terms, assigns territory, and controls the sales process
Common Law Test - Independent Contractor .....ANSWER..... -
Sets own hours and determines their own work sequence
- Can work for multiple employers and their services are
available to the public
- Is self-employed
- Governs how the contract relationship can be severed
- Works by the job
- Permitted to employ assistants
- Performs services under their own name
- Payment by the job
- Provides their own tools, equipment, and training
, Page 4 of 124
- Controls their own sales process and terms
Reasonable Basis Test .....ANSWER..... The exception to the
Common Law Test
Employers can classify a worker as an independent contractor if
the worker meets the following requirement:
- if the employer files a 1099 on behalf of the worker
- there is a longstanding and recognized practice in a significant
segment of the employer's industry of treating similar workers as
independent contractors
- Judicial precedent of treating workers in similar circumstances
as independent contractors
- IRS has ruled in a "published ruling" that the workers are
independent contractors
