FPC PAYROLL FUNDAMENTALS QUESTIONS AND ANSWERS UPDATE
2024/2025 ALL ANSWERS 100% CORRECT DETAILED BEST EXAM
SOLUTION RATED A+
Employer has treated similar workers as independent contractors for any period and has filed tax
returns - CORRECT ANSWERS Reasonable Basis Test
Longstanding industry standard of treating similar workers as independent contractors - CORRECT
ANSWERS Reasonable Basis Test
Court decisions for treating workers in similar circumstances as independent contractors - CORRECT
ANSWERS Reasonable Basis Test
IRS has ruled in a "published ruling" that the workers are indpendent contractors - CORRECT
ANSWERS Reasonable Basis Test
Temporary Service Provider or Leasing Company - CORRECT ANSWERS Pays employees and taxes
instead of company the employee is performing services for
Immigration reform and Control Act of 1986 (IRCA) - CORRECT ANSWERS Requires employer to
verify employees' eligibility for employment in the US.
Penalties for Violating IRCA - CORRECT ANSWERS $375 for the first offence and $16,000 for the third
Antidiscrimination under IRCA - CORRECT ANSWERS The law prohibits discrimination in hiring or
recruiting workers on the basis of national origin or citizenship
Worker that has Fed, OASDI, Medicare, State withheld - CORRECT ANSWERS Employee
Worker that requires the employer to pay ER taxes - CORRECT ANSWERS Employee
Worker that receives W2 form - CORRECT ANSWERS Employee
Worker that does not have taxes withheld - CORRECT ANSWERS Independent Contractor
Worker that has TIN - CORRECT ANSWERS Independent Contractor
Worker that receives 1099 Form - CORRECT ANSWERS Independent Contractor
, FPC PAYROLL FUNDAMENTALS QUESTIONS AND ANSWERS UPDATE
2024/2025 ALL ANSWERS 100% CORRECT DETAILED BEST EXAM
SOLUTION RATED A+
Asks how independent is the employee and how much control can be exervised over the worker. -
CORRECT ANSWERS Common Law Test
A worker cannot sign a new contract stating that they will be an indepndent contractor. - CORRECT
ANSWERS Common Law Test
Verification of eligitability - CORRECT ANSWERS 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.
When must Section 1 of Form I-9 be completed? - CORRECT ANSWERS The employee's date of hire.
When must Section 2 of Form 1-9 be completed? - CORRECT ANSWERS Within three days of hiring
the employee.
Form SS-5 - CORRECT ANSWERS Application for a social security card
Form I-9 - CORRECT ANSWERS Employment Eligitability Verification
Employee SSN verification is... - CORRECT ANSWERS recommended but not required.
What information must an employer report for new hires? - CORRECT ANSWERS Name, Date of
Hire, Address, SS, Employer's Name, Address, and EIN
Fair Labor Standards Act of 1938 (FLSA) - CORRECT ANSWERS Guarantees employees a minimum
wage, requires employers to pay an overtime premium, limits when minors can work, and provides
equal pay protection.
Who is protected by FLSA? - CORRECT ANSWERS Nonexempt employees
4 categories of exempt employees - CORRECT ANSWERS Executives, Administrative Employee,
Professional, Outside Sales People
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