ASA Compensation, Benefits & Payroll Management 2

Question 1

When calculating a temporary worker's fully loaded cost, which of the following is NOT typically included in the burden rate?

Accepted Answer

The worker's personal health insurance copays

Answer

Workers' compensation insurance

Answer

Employer FICA taxes

Answer

State unemployment insurance (SUI)

Question 2

Under ERISA, what is the primary obligation of staffing firms that sponsor employee benefit plans?

Accepted Answer

Act as fiduciaries and manage plan assets in participants' best interests

Answer

Maximize investment returns for workers

Answer

Ensure clients match agency benefit contributions

Answer

Provide benefits only to full-time direct hires

Question 3

A staffing agency's workers' compensation experience modification rate (EMR) directly affects which cost component?

Accepted Answer

Workers' compensation insurance premium

Answer

FUTA tax rate

Answer

State unemployment tax rate

Answer

FICA contribution base

Question 4

Which classification error creates the greatest payroll tax and benefits liability risk for a staffing agency?

Accepted Answer

Misclassifying an employee as an independent contractor

Answer

Misclassifying a full-time employee as part-time

Answer

Misclassifying an exempt employee as non-exempt

Answer

Misclassifying a temporary worker as a seasonal worker

Question 5

What is the primary purpose of the IRS 'ABC test' alternative used in some states to determine worker classification?

Accepted Answer

To establish whether a worker is an employee or an independent contractor

Answer

To determine if a worker qualifies for overtime pay

Answer

To calculate the correct withholding amount for a worker

Answer

To verify the accuracy of payroll tax filings

Question 6

In the staffing industry, what does 'pay-rolling' refer to?

Accepted Answer

Placing a client-recruited worker on the agency's payroll to handle employer obligations

Answer

Adding a markup to worker wages before billing the client

Answer

Processing payroll in-house rather than outsourcing it

Answer

Adjusting wages retroactively after a client audit

Question 7

Which IRS form is used to document that a temporary worker has provided their Social Security Number and verified their tax withholding elections?

Accepted Answer

Form W-4

Answer

Form I-9

Answer

Form 1099-K

Answer

Form SS-4