Payroll Certification Review - 2025-2026

These flashcards cover key concepts for the Payroll Certification Review course, focusing on worker classification, tax responsibilities, and related forms.

The employer's tax withholding and reporting obligations are contingent on __.

proper classification of the worker.

Types of workers that provide services for employers include __, __, and __.

Common Law Employees, Independent Contractors, Statutory Employees.

To be considered an employee, a worker must be __ through the payroll department.

paid.

An independent contractor is primarily paid through __.

Accounts Payable fund.

If an independent contractor does not provide a Taxpayer Identification Number (TIN), the payer must withhold __.

24% backup tax.

The Common Law Test determines the degree to which the worker is __.

controlled.

The reasonable basis for determining worker status may consist of __, __, and __.

Judicial precedent, Past IRS Audit, Long-standing recognized industry practice.

Statutory Employees are treated as employees for certain __ tax purposes.

employment.

The IRS requires Form __ for determination of worker status.

SS-8.

Statutory Non-Employees include and .

Real Estate Agents, Direct Sellers.

Temporary Help Agencies employees are hired to provide __ services for client companies.

short-term.

Professional Employer Organizations provide comprehensive human resources, payroll, and __ management.

benefits.

The Supreme Court considers the degree of __ over how work is performed.

control.

Payments made to Statutory Employees are not subject to __ withholding.

FIT.

Under state wage-hour laws, the ABC test determines eligibility for __ Insurance.

State Unemployment.

Employers are responsible for penalties if they incorrectly classify a __.

worker.

Form 1099-NEC is used to report any payments in excess of __ or more in a calendar year.

$600.

A casual laborer is engaged for short intervals to perform __ tasks.

specific.

Under the Immigration Reform and Control Act, it is illegal for employers to hire an __ worker.

unauthorized.

E-Verify allows employees to confirm the __ of their employees to work in the United States.

eligibility.

The common law employee test uses __ to determine the employer-employee relationship.

control.

Worker misclassification penalties can result in employers paying __ percent of FICA taxes if misclassification is not intentional.

20%.

Employers must keep Form I-9 for __ from the date of hire.

3 years.

A worker can be an employee by day and an independent contractor by night under __ circumstances.

unusual.

Employers with employees in 2 or more states can designate one state to report all their __.

new hires.

The trade adjustment assistance extension act defines newly hired employees as those separated for at least __ days.

60 consecutive.