Certified Payroll
Professional || 120
Questions|| Correct
Solutions|| Verified
Form SS-8 - ANSWER Determination of worker status for purpose of federal employment taxes and
income tax withholding. Can be filled out by the business or worker.
Form W-4 - ANSWER Employees withholding allowance certificate. Documents the amount of federal tax
withholding.
Form SS-4 - ANSWER Application for employer identification number.
Form 8233 - ANSWER Exemption from withholding on compensation for independent personal services
of a nonresident alien individual. The purpose is to claim an exemption from the withholding
requirements.
Form 1096 - ANSWER Annual summary and transmittal of U.S. information returns. It is used to
summarize each type of information return. A separate 1096 is to be filed with each group of returns.
Forms 1097,1098,1099.
Form 1042-T - ANSWER Annual summary and transmittal of forms 1042-S. Summarize the income and
taxes withheld amounts from all corresponding forms.
, Form 1042-S - ANSWER Foreign person's U.S. source income subject to withholding. To report income
subject to withholding for foreign persons such as non resident aliens, foreign partnerships, foreign
corporations, foreign estates and foreign trusts. Interests, rents, and royalties. Certain natural resource
gains and certain gains on certain intellectual property.
Form 1042 - ANSWER Annual withholding tax return for U.S. source income of foreign persons.To report
the amount of income tax withholding on certain income paid to non resident aliens, foreign
partnerships, foreign corporations, foreign estates and foreign trusts.Form 1042 must be filed in any of
the following criteria are met: Form 1042 is required to be filed or Gross investment income is paid to
taxable foreign private foundations or Specified federal procurement payments are paid to any foreign
person.
Form SS-5 - ANSWER Application for a Social Security Card. Apply for a new card or a replacement card
or to make an existing card.
Obligations for Temporary Agency /Leased Employee - ANSWER Payroll. Bookkeeping,Tax Deductions,
Workers Comp and Fringe Benefits
Common Law Test - ANSWER The keys are to look at the entire relationship. Consider the degree or
extent of the right to direct and control.Document each of the factors used in coming up with
determination.
Reasonable Basis Test - ANSWER Safe Harbor Rules Sec 530 Revenue Act of 1978. Employees vs.
Independent Contractors for tax purposes.
Judicial Precedent Safe Haven - ANSWER Taxpayers using previous legal rulings (within reason for
employee classification)
Past Audit Safe Haven - ANSWER Taxpayer relying on an audit by IRS for employment taxes due.
(Employee classification)
Industry Practice Safe Haven - ANSWER Recognized industry practices. (Employee classification)
Professional || 120
Questions|| Correct
Solutions|| Verified
Form SS-8 - ANSWER Determination of worker status for purpose of federal employment taxes and
income tax withholding. Can be filled out by the business or worker.
Form W-4 - ANSWER Employees withholding allowance certificate. Documents the amount of federal tax
withholding.
Form SS-4 - ANSWER Application for employer identification number.
Form 8233 - ANSWER Exemption from withholding on compensation for independent personal services
of a nonresident alien individual. The purpose is to claim an exemption from the withholding
requirements.
Form 1096 - ANSWER Annual summary and transmittal of U.S. information returns. It is used to
summarize each type of information return. A separate 1096 is to be filed with each group of returns.
Forms 1097,1098,1099.
Form 1042-T - ANSWER Annual summary and transmittal of forms 1042-S. Summarize the income and
taxes withheld amounts from all corresponding forms.
, Form 1042-S - ANSWER Foreign person's U.S. source income subject to withholding. To report income
subject to withholding for foreign persons such as non resident aliens, foreign partnerships, foreign
corporations, foreign estates and foreign trusts. Interests, rents, and royalties. Certain natural resource
gains and certain gains on certain intellectual property.
Form 1042 - ANSWER Annual withholding tax return for U.S. source income of foreign persons.To report
the amount of income tax withholding on certain income paid to non resident aliens, foreign
partnerships, foreign corporations, foreign estates and foreign trusts.Form 1042 must be filed in any of
the following criteria are met: Form 1042 is required to be filed or Gross investment income is paid to
taxable foreign private foundations or Specified federal procurement payments are paid to any foreign
person.
Form SS-5 - ANSWER Application for a Social Security Card. Apply for a new card or a replacement card
or to make an existing card.
Obligations for Temporary Agency /Leased Employee - ANSWER Payroll. Bookkeeping,Tax Deductions,
Workers Comp and Fringe Benefits
Common Law Test - ANSWER The keys are to look at the entire relationship. Consider the degree or
extent of the right to direct and control.Document each of the factors used in coming up with
determination.
Reasonable Basis Test - ANSWER Safe Harbor Rules Sec 530 Revenue Act of 1978. Employees vs.
Independent Contractors for tax purposes.
Judicial Precedent Safe Haven - ANSWER Taxpayers using previous legal rulings (within reason for
employee classification)
Past Audit Safe Haven - ANSWER Taxpayer relying on an audit by IRS for employment taxes due.
(Employee classification)
Industry Practice Safe Haven - ANSWER Recognized industry practices. (Employee classification)
