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Mastering Payroll Quizzes ACC 160 advanced book keeping applications
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MASTERING PAYROLLQUIZZES
Section 1EMPLOYEES V. NONEMPLOYEES
1. Backup withholding tax applies:
a. when a new employee does not submit a Form W-4
b. when an independent contractor fails to submit a TIN
c. to statutory employees
d. to common law employees
2. Which of the following could be a statutory employee?
a. a licensed real estate agent
b. a direct seller
c. a life insurance sales agent who deals primarily with one
carrier
d. an independent contractor
3. Al, walks in off the street, says the grounds could use some
sprucing up, and offers to do it for $8 an hour. Management gives
him a try for 6 months. He is told to come in Monday–Friday, from
9 a.m.1 p.m., use the company’s garden tools and check in with
the maintenance supervisor who will tell him what to do. Your
company:
a. can pay Al as an independent contractor and issue a 1099 at year
end
b. must pay him as an employee, withhold appropriate taxes and
issue a W-2 at year end
c. can choose a. or b., depending on your company’s policy
d. can opt to treat Al as a temp
4. If you do not know whether a new worker is an employee or an
independent contractor:
a. you must treat the worker as an employee
b. you must treat the worker as an independent contractor
c. you may seek a determination from the IRS, but until the IRS
responds you must treat the worker as an employee
d. you may seek a determination from the IRS on classifying the
person, but until the IRS responds you must treat the worker
as an independent contractor
5. Which of the following could be a statutory nonemployee?
a. a licensed real estate agent
b. an independent contractor
c. a full-time travelling salesperson
d. a life insurance sales agent who deals primarily with one
carrier
6. A home-care companion sitter is:
a. a common-law employee
b. a statutory employee
Testbank 1
,Mastering Payroll
c. a statutory nonemployee
d. an independent contractor
© 2016 by The American Institute of Professional Bookkeepers
7. Which of the following workers is subject to FICA, but not FITW?
a. a common-law employee
b. a statutory employee
c. a statutory nonemployee
d. an independent contractor
8. Which of the following is responsible for paying both the employee
and employer portions of FICA tax?
a. a common-law employee
b. a statutory nonemployee
c. a leased employee
d. an independent contractor
9. On which of the following does an employer not pay FUTA tax?
a. a common-law employee
b. a nonstatutory employee
c. an independent contractor
d. none of the above
10. In July 2016, Oxon, Inc. receptionist Ling takes a week’s vacation
and her daughter Hua fills in for her. Hua is:
a. a common-law employee
b. a statutory nonemployee
c. an independent contractor
d. a temp agency referral
Testbank 2
, Mastering Payroll
Section 2FEDERAL AND STATE WAGE-HOUR LAW
1. The frequency and method of distributing the payroll is regulated
by:
a. the U.S. Department of Labor, Wage and Hour Division
b. the Internal Revenue Service
c. state wage hour departments
d. by employee–employer negotiation
2. If the state minimum wage is higher or lower than the federal one,
the employer must use:
a. the state minimum wage
b. the federal minimum wage because federal law is “senior” to state
law
c. the minimum wage most favorable to the employee
d. the minimum wage most favorable to the employer
3. A retail business that began operations in 1997 must abide by
federal wage-hour law if gross annual sales are:
a. $0 or more
b. $362,500 or more
c. $250,000 or more
d. $500,000 or more
4. What to do with the final paycheck never claimed by a terminated
employee is covered by:
a. state wage-hour law
b. escheat law
c. the enterprise coverage test
d. federal wage-hour law
5. A retail business that began operations in 1987 must abide by
federal wage-hour law if gross annual sales are:
a. $0 or more
b. $362,500 or more
c. $250,000 or more
d. $500,000
6. A dry cleaning establishment that began operations in 2004 must
abide by federal wage-hour law if gross annual sales are:
a. $0 or more
b. $362,500 or more
c. $250,000 or more
d. $500,000 or more
Testbank 3
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