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| 1- If the employer has the right to control what work will be done and how that work will be done ,an employer - employee relationship exists under common law test. |
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| 2- Full time life insurance salespersons are always considered statuary employees and are never subject to FUTA tax |
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Definition
| False- Their earnings must consist solely of commission to be exempt from FUTA tax |
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Term
| 3- Workers hired through a temporary help agency are not employees of the client company. |
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Definition
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Term
| 4- Telemarketers working under the direction of a company are usually independent contractors. |
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Definition
| False- if telemarketers work under the direction and control of a company, they are employees of that company |
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Term
| 5- An accountant who provides bookkeeping and payroll services to several local businesses and works at her own office is an independent contractor |
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Term
| 6- The responsibility for determining the employment status of an individual who performs services rests with the employer |
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Term
| 7- If an independent contractor timely provides the employer with a correct Taxpayer identification number, there will be no backup withholding. |
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Term
| 8- If an employer uses the E-verify program,a new hire does not have to enter their SSN in section 1 of form I-9 |
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Definition
| False- is an employer uses the E-verify program, a new hires must enter their SSN number in section 1 of form I-9 |
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Term
| 9- Managers and executives are excluded from the employer-employee relationship for tax purposes |
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Definition
| False- Managers and executives are classified as employees for tax purposes, although they are exempt under most wage-hour and labor relations law |
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Term
| 10- Length of employment makes no difference in determining employment status |
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Term
11-
Technical services specialists are specifically excluded from the "reasonable basis" test. |
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Definition
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Term
| 12- Under the ABC test, one of the determining factors is whether the worker in question is free from control or direction in performing the work both by agreement and in reality. |
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Definition
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Term
| 13- Part time employees are not covered under the federal payroll tax laws even if they meet the common law test for employment status. |
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Definition
| False- part time employees covered under the federal payroll tax laws if they meet the common law test for employment status. |
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Term
| 14- if an employee is rehired by an employer 75 days after being terminated, the employer must report the employee as a new hires. |
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Definition
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Term
| 15- employers can demand specific documents to prove an employee's eligibility to work in the U.S |
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Definition
| False- employers cannot demand a specific documents to prove an employee's and eligibility to work. New hires can produce any approved documents listed in the I-9 form instructions that proof identity and work authorization. |
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Term
| 16- employers who claim section 530 status for their workers because a significant segment of their industry classifies similar workers the same way must show that at least 50% of the industry treats these workers as independent contractors. |
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Definition
| False- The IRS cannot require an employer to show that more than 25% of its industry treated similarly situated workers as independent contractors. |
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Term
| 17- An employer that changes its classification of a worker from independent contractor to employee may still claim section 530 protection for the period before the change in treatment. |
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Definition
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Term
| 18- An IRS agent conducting an employment tax audit must give the employer written notice of the availability of the section 530 protection. |
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Definition
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Term
| 19- under the federal new hire reporting requirements, multistate employers must report a new hire to the state in which the employee works. |
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Definition
| False- Multistate employers can designate one state in which they have employees as the state to which they will report all new hires |
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Term
| 20- if an employee resigns after working for an employer for five years, the employer must retain the employees form I-9 for three years after that employee's last date of employment., |
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Definition
| False-The employer must retain the employees form I-9 for one year after the employees last day of employment |
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Term
1-which of the following forms maybe completed and submitted to the IRS to determine the employment status of an individual for federal income and employment tax purposes?
a- form SS-4
b-form SS-5
c-form SS-8
d-W-9 |
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Definition
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Term
2-which of the following forms must be submitted to an independent contractor who is paid at least $600 after the end of the year for services performed during that year?
a-Form W-2
b-Form 1099-MISC
c-Form 1096
d-Form SS-8 |
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Definition
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Term
3- all of the following types of evidence support an employers treatment of a worker as an independent contractor under the reasonable basis test except:
a-place of work
b-court decision
c-private letter rulings
d-past IRS employment tax audits |
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Definition
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Term
4-all of the following facts and circumstances will be typical of an independent contractor except:
a-works off site
b-paid by the hour
c-furnishes own tools
d-sets own work hours |
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Definition
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Term
5-each of the following individuals would be classified as an employee except:
a-controller of a company
b-College professor
c-attorney
d-City police officer |
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Definition
| c-attorney (solo practitioner) |
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Term
6-all of the following workers are statutory the employees except:
a-full-time life-insurance salesperson
b-qualified real estate agents
c-homeworkers
d-trailing or city sales persons |
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Definition
| b-qualified real estate agents |
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Term
7-full-time life insurance sales persons paid solely by commission are exempt from:
a-social Security and Medicare taxes
b-Social security tax only
c-FUTA tax
d-social security Medicare and FUTA taxes |
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Definition
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Term
| 8-if an employer fails to Withhold Social Security and Medicare taxes from a worker it misclassifies as an independent contractor and does not file a form W-2 or a form 1099 for that workers, what penalty may the IRS impose? a-10% of the employees share of Social Security and Medicare taxes b-20% of the employees share of Social Security and Medicare taxes c-40% of the employees share of Social Security and Medicare taxes d-100% of the employees share of Social Security and Medicare taxes |
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Definition
| c-40% of the employees share of Social Security and Medicare taxes |
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Term
| 9-how long must an employer retain a form I-9 for a terminated employee who worked for the employer for more than four years a-One year after termination b-three years after termination c-seven years after termination d-does not have to keep terminated employees I-9 forms |
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Definition
| a-One year after termination |
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Term
10-which of the following situations describes one of the general requirements that must be met for workers to be considered statutory employees?
a-they have a continuing relationship with the employer
b-they have a substantial investment in the business equipment
c-they are licensed real estate agents
d-most of their compensation is related to sales |
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Definition
| a-they have a continuing relationship with the employer |
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Term
11-each of the following goals is a reason why states might require employers to report newly hired employees except:
a-to detect welfare fraud
b-to detect unemployment compensation fraud
c-to locate individuals who have not claimed state lottery winnings
d-to locate noncustodial parents subject to a child support withholding order |
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Definition
| c-to locate individuals who have not claimed state lottery winnings |
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Term
12-which of the following individuals are statutory nonemployees
a-Home workers
b-full-time life insurance salespersons
c-newspaper deliverers
d-Traveling salespersons |
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