Payroll Hell Quiz 1

This is a quiz about chapter one. There are multiple choice, true and false, and calculation questions. If you find any incorrect answers please email me as soon as possible. Thank you and good luck on the test.

Each quiz is for a different chapter, so don't trick yourself into thinking this is the only quiz. If you like, you can double check or write down the time to see how long it takes you to finish each chapter. Thank you and good luck on the test.

Created by: Rumi
  1. If the employer has the right to control what work will be done & how that work will be done, an employer-employee relationship exists.
  2. Full-time life insurance salespersons are always considered statutory employees & are never subject to FUTA tax.
  3. Workers hired through a temporary help agency are not employees of the client company.
  4. Telemarketers working under the direction of a company are usually independent contractors.
  5. An accountant who provides bookkeeping & payroll services to several local businesses & works at her own office is an independent contractor.
  6. The responsibility for determining the employment status of an individual who performs services rests with the employer.
  7. If an independent contractor timely provides the employer with a correct Taxpayer Identification Number, there will be no backup withholding
  8. The IRS usually relies on the reasonable basis test in making employment status determinations.
  9. Managers & executive are excluded from the employer-employee relationship for tax purposes.
  10. Length of employment makes no difference in determining employment status.
  11. Technical services specialists are specifically excluded from the "reasonable basis" test.
  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.
  13. Part-time employees are not covered under the federal payroll tax laws even if they meet the common law test for employment status.
  14. "Reciprocity agreements" require employers to withhold state income tax only for their employees' state of residence.
  15. Employers can demand specific documents to prove an employee's eligibility to work in the U.S.
  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.
  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.
  18. An IRS agent conducting an employment tax audit must give the employer written notice of the availability of the Section 530 protections.
  19. Under the federal new hire reporting requirements, multistate employers must report a new hire to the state in which the employee works.
  20. Which of the following forms may be completed & submitted to the IRS to determine the employment status of an individual for federal income & employment tax purposes?
  21. 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.
  22. All of the following types of evidence support an employer's treatment of a worker as an independent contactror under the "reasonable basis" test except:
  23. All of the following criteria would be typical of independent contractor except:
  24. Each of the following individuals would be classified as an employee except:
  25. All of the following workers are statutory employees except:
  26. Full-time life insurance salespersons paid solely by commissions are exempt from:
  27. If an employer fails to withhold social security & Medicare taxes & does not file a Form W-2 or a Form 1099 for an individual, what penalty may the IRS impose?
  28. How long must an employer retain a Form I-9 for a terminated employee who worked for the employer for more than 4 years?
  29. Which of the following situations describes one of the general requirements that must be met for workers to be considered statutory employees?
  30. Each of the following goals is a reason why states might require employers to report employers to report newly hired employees except:
  31. Which of the following individuals are statutory nonemployees?

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