Law and Business 3

  1. What is true regarding the Employer I.D. Number?
    • D. ALL OF THE ABOVE
    • (A. IT IS RECORDED BY THE CSLB UPON APPLICATION FOR A LICENSE
    • B. IT IS OBTAINED FROM THE IRS
    • C. IT IS NECESSARY WHEN YOU APPLY FOR A PARTNERSHIP LICENSE)
  2. If a contractor is operating as a corporation or a partnership and obtains a federal tax ID number, to whom does he or she send the number?
    THE CONTRACTORS LICENSE BOARD
  3. Is it legal for a contractor to require employees to take a lie detector test?
    IT IS NOT LEGAL FOR THE CONTRACTOR TO REQUIRE LIE DETECTOR TESTS, BUT IT WOULD BE LEGAL FOR THE GOVERNMENT TO REQUIRE THEM.
  4. If a newly hired employee does not have a Social Security Number, what should be done?
    THE EMPLOYEE MUST APPLY FOR ONE
  5. A construction company was hiring a new crew and asked each prospective employee for their security number. several prospective employees had remembered their numbers but did not have or documentation. The practice of relying on memorized social security numbers is:
    UNACCEPTABLE: THE ACTUAL SOCIAL SECURITY CARD SHOULD HAVE BEEN INSPECTED
  6. Which of the following hiring practices is NOT acceptable?
    REFUSING TO HIRE A PERSON WITH CANCER AS THE EMPLOYER'S HEALTH INSURANCE RATES WOULD BE SUBSTANTIALLY INCREASE
  7. George publishes an advertisement for a position with his construction company. Heavy lifting is required in his ad it states that he seeks a white male under age 35. This ad is considered:
    ILLEGAL DUE TO BOTH SEX DISCRIMINATION AND AGE DISCRIMINATION
  8. In interviewing several candidates for a position with his company, John, Dobson asked each person several questions. Which of the following is the only legal questions he can ask?
    MEDICAL RECORDS
  9. Which of the following is an acceptable hiring practice?
    HIRING A VETERAN OVER A NON-VETERAN
  10. If John, an illegal alien, applies for a position with your company and he asks for help in legalizing his status, you should refer him to the:
    INTERNAL REVENUE SERVICE
  11. Which department of the government is responsible for implementing the employment eligibility verification requirementin the immigration reform and control act and may require you to present I-9 forms for each employee that you have hired?
    INS- IMMIGRATION & NATURALIZATION SERVICE
  12. The W-4 is used to:
    INDICATE THE EXACT AMOUNT OF F.I.T. TAX TO WITHHOLD
  13. What is the purpose of a W-2 form?
    FOR DECLARING INCOME EARNED AND TAXES WITHHELD
  14. Labor that is considered part-time is not subject to the same labor laws as full time employment. Which of the following is considered full time employment?
    32 OR MORE HOURS/WEEK
  15. When you hire a sub contractor, as opposed to an employee, what must you do?
    • BOTH A AND B
    • (A. REQUIRE THE SUBCONTRACTOR TO COMPLETE A FORM OF W-9 ON WHICH THE INDIVIDUAL MUST PROVIDE A SOCIAL SECURITY NUMBER
    • B. IF THE SUBCONTRACTOR DOES NOT PROVIDE A TAXPAYER ID NUMBER, YOU MUST WITHHOLD 20% OF THE PAYMENT OF INCOME TAX)
  16. IF you hire a trades-person to subcontract work for time and material only for $400, and the person is not licensed, this is considered:
    A STATUTORY EMPLOYEE, AND WITHHOLDING TAXES MUST BE DEDUCTED
  17. Which of these describes an independent agent as opposed to an employee?
    PERSON LICENSED AND SUPPLIES HIS OWN TOOLS
  18. Which of these describes an employee as opposed to an independent contractor?
    • ALL OF THE ABOVE
    • (A. THE EMPLOYEE WORKS FOR AN HOURLY WAGE AND IS SUPERVISED
    • B. THE EMPLOYEE HAS PAYROLL TAXES TAKEN OUT
    • C. THE EMPLOYEE IS SUPPLIED TOOLS)
  19. When is a worker considered an employee rather than an independent contractor?
    WHEN THE EMPLOYER HAS DIRECT CONTROL OVER THE WORK BEING PERFORMED
  20. An employer must file federal form 1099-MISC to report payments of ______ or more per calendar year to persons not treated as employees (eg. Independent contractors) for services performed the business.
    $600
  21. Bob Smith, a contractor, hires Jim and Nancy and offers them $15 per hour to dig ditches. At the end of the year, Bob issues them a 1099 form, indicating the amount of money he paid them for the year. What should Bob know?
    THAT HIS ACTIONS ARE ILLEGAL AND THE FIND COULD COST HIM $100 PER DAY PER EMPLOYEE
  22. An employee, whose regular rate is $10/hour, works 60 hours one week and 30 hours the next week. Based on a two week payroll system, what are the gross wages due?
    $1000
  23. What should Ed, an employee, do if the employer requires him to work more than six consecutive days?
    IT IS ILLEGAL AND HE SHOULD REPORT IT TO THE LABOR COMMISSIONER
  24. A worker is not paid for his overtime. He them files a complaint against his employer with EDD. When the employer finds out that the employee filed the complaint, he fires the worker. Select the most correct statement:
    THE EMPLOYER WILL BE REQUIRED TO REINSTATE THE EMPLOYEE WITH FULL BACK-PAY AND BENEFITS, PLUS PAY A FINE OF UP TO $1000
  25. How old must a worker be to do heavy work in construction?
    16
  26. A contractor buys a construction firm from a person who is retiring. There is an existing collective bargaining agreement with a successor clause that is good for three years. As the new "owner," is the contractor bound by the collective bargaining agreement?
    YES THE SUCCESSOR IS BINDING ON A SUCCESSOR FOR UP TO 3 YEARS
  27. Your employee has reached his limit of FICA contributions, what should you do as the employer?
    CEASE DEDUCTING FOR FICA
  28. How may a new contractor with one employee obtain workers' compensation insurance coverage?
    OBTAIN COVERAGE FROM A LICENSED INSURANCE CARRIER AND/OR BE SELF INSURED WITH PERMISSION
  29. When must a contractor obtain workers' compensation insurance?
    WHENEVER ONE OR MORE EMPLOYEES IS HIRED
  30. If an owner builder decides to hire a person to help with building a house, who is responsible for workers' compensation?
    THE OWNER-BUILDER
  31. If a contractor hires a sub to do clean-up work, whose responsibility is it that the sub has workers' compensation for his employees?
    THE PRIME CONTRACTOR
  32. Joe hires Pete to act as a sub-contractor on a project and the sub confirms that he has workers' compensation. Joe asks peter for a copy of his certificate of insurance. A few days later, work begins but Pete has not et given Joe a copy of his certificate. Worried that he might be liable for any injuries should Pete not have insurance, Joe should:
    FIRE PETE AND REPLACE HIM WITH A SUB WHO HAS THE INSURANCE
  33. If a worker is injured on the job and it is determined that the worker was under the influence of alcohol or drugs at the time of the accident, which of the following would be true?
    THE WORKER WOULD NOT BE COVERED BY WORKERS' COMPENSATION
  34. Select the situation where an employer would be held liable for payment of workers' compensation benefits to an injured employee?
    THE EMPLOYER IS ALWAYS LIABLE UNLESS HE CAN DEMONSTRATE THAT THE EMPLOYEE IS NOT ELIGIBLE FOR BENEFITS
  35. When and where do contractors pay FUTA when the total amount is under $100?
    YEARLY TO THE IRS
  36. George owns a small construction company with 4 employees. In addition, his wife, Millie works 3 days a week as an office-helper. In this situation, which of the following is not subject to FUTA tax deductions?
    SICK PAY
  37. When is health insurance required for employees?
    NEVER, IT IS THE EMPLOYER'S CHOICE TO OFFER THIS BENEFIT
  38. Which of the following is NOT deducted from an employee's paycheck?
    UNEMPLOYMENT TAX
  39. Contractors who work in sales and use tax districts in California and purchase fixtures or materials are subject to what percentage of tax?
    A CERTAIN PERCENTAGE BASED ON SUPPLIES USED AT THE JOB SITE AND DIFFERS BETWEEN TAX DISTRICTS
  40. To whom do contractors report and pay sales tax?
    BOARD OF EQUALIZATION
  41. In the event of a strike, what would happen to the unpaid wages due the striking employees?
    WAGES ARE DUE AND PAYABLE ON THE NEXT REGULAR PAY DAY
  42. A contractor is forced to terminate two of the company's employees due to the economy. The contractor issues final paychecks which are returned by the bank for insufficient funds. Which of the following is true?
    THE EMPLOYER IS LIABLE FOR UP TO 30 DAYS ADDITIONAL WAGES
  43. Which Act established the right of workers to organize into unions and negotiate contracts?
    NATIONAL LABOR RELATIONS ACT OF 1935
  44. Some counties have additional sales tax added to the State base rate. Which of the following is a correct statement?
    YOU MUST PAY THE ADDITIONAL TAX IN THE COUNTY WHERE THE MATERIALS WERE PURCHASED
Author
pablojr
ID
29339
Card Set
Law and Business 3
Description
State Examination
Updated