Payroll CPP

1. Which form is used for Determination of Employee Work Status for Purposes of Federal Employment Taxes and Income Tax Withholding?

A. Form I-9
B. Form SS-4
C. Form SS-5
D. Form SS-8

1. D

2. What amount must an independent contractor be paid for services rendered before an employer is obligated to give them a 1099-MISC?

A. Once total reaches $600 or more
B. Total payments reach $600 or more for company’s fiscal year
C. Total payments reach $600 or more for calendar year
D. Any individual payment makes during calendar year exceeding $600

2. C

3. Qualified real estate agents and direct sellers are which of the following?

A. Statutory Employees
B. Statutory Nonemployees
C. Employees
D. Independent Contractors

3. B

4. Under the common law test, the IRS examiners are to group the evidence they gather into three general types or “categories”. Which of the following is not one of them?

A. Behavioral control
B. Financial control
C. Location of work
D. Relationship of the parties

4. C

5. Which of the following is not regulated by the FLSA?

A. Child labor
B. Overtime pay
C. Minimum Wage Rates
D. 8 hour work day

5. D

6. Agent-drivers, commission-drivers and full-time life insurance salespersons are which of the following?

A. Statutory Employees
B. Statutory Nonemployees
C. Employees
D. Independent Contractors

6. A

7. There are three parts of the ABC test, which is not one of them?

A. Business-unusual and/ or away
B. Risk of loss
C. Customarily independent contractor
D. Absence of control

7. B

8. Under the federal new hire reporting requirement how many days does an employer have after hire date?

A. 10 days
B. 20 days
C. 30 days
D. 40 days

8. B

9. What is Form I-9 used for?

A. Application for Employer Identification Number
B. Determination of Employee Work Status
C. Application for IRS Individual Taxpayer Identification Number
D. Employment Eligibility Verification

9. D

10. Under the reasonable basis test, which of the following does not support an employer’s treatment of a worker as an independent contractor?

A. Past IRS employment tax audit
B. Published IRS rulings
C. Place of work
D. Private letter rulings

10. C

11. What does FLSA stand for?

A. Federal Labor Standards Act
B. Fair Labor Standards Act
C. Federal Labor Standards Agency
D. Fair Labor Standards Agency

12. Which of the following is not covered under the FLSA?

A. Regulate how often employees must be paid
B. Mandates equal pay for equal work
C. Requires recordkeeping by employers
D. sets the minimum wage and overtime rates employees must receive for their work

12. A

13. Who enforces the Federal Wage-Hour Law?

A. Individual States
B. IRS
C. EEOC
D. DOL

13. D

14. Who enforces the equal pay provisions?

A. Individual States
B. IRS
C. EEOC
D. DOL

14. C

15. Which is not one of the White Collar Exemption?

A. Administrative
B. Executive
C. Management
D. Professional employees

15. C

16. For overtime pay. Which one is included in the regular rate?

A. Discretionary bonuses
B. Nondiscretionary bonuses
C. Gifts
D. Reimbursed expenses

16. B

17. For calculation of overtime pay. Which one is not included in the regular rate?

A. Supplemental disability payments
B. On-call pay
C. Retroactive pay
D. Vacation pay

17. D

18. A computer professional must be paid at least what per hour to be exempt from overtime requirements under the FLSA?

A. Minimum wage per hour
B. 21.55 per hour
C. 27.63 per hour
D. 29.67 per hour

18. C

19. Ryan’s regular workweek is 37.50 hours and he is paid biweekly. Ryan worked 38 hours in the first week and worked 45 hours in the second. How many hours are paid at the overtime rate?

A. 2.50
B. 5
C. 7.5
D. 8

19. B

20. What is the federal minimum wage rate?

A. 4.25
B. 5.85
C. 6.55
D. 7.25

20. D

21. So long as the employee’s tips are enough to make up the remainder of the minimum hourly wage. What is the federal minimum wage for tipped employee?

A. 2.01
B. 2.07
C. 2.09
D. 2.13

21. D

22. What is the time limit on filing an FLSA complaint with the Wage and Hour Division?

A. 1 or 2 years
B. 2 or 3 years
C. 3 or 4 years
D. 4 or 5 years

22. B

23. A “working condition” fringe benefit is?
A. Discount offered employees that’s not more than 20% of the price for services offered to customers
B. A service or an item of such small value as to make accounting for the benefit unreasonable
C. A service the employee could deduct as a business expense if he or she had paid for it
D. Services provided free or at reduced rates by an
employer in the line of business in which the employee works

23. C

24. A “de minimis” fringe benefit is?
A. Discount offered employees that’s not more than
20% of the price for services offered to customers
B. A service or an item of such small value as to make accounting for the benefit unreasonable
C. A service the employee could deduct as a business expense if he or she had paid for it
D. Services provided free or at reduced rates by an employer in the line of business in which the employee works

24. B