FPC Payroll Fundamentals Questions and Answers

FPC Payroll Fundamentals 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.