CCWP Worker Classification & Independent Contractor Compliance 2

Question 1

California's Assembly Bill 5 (AB5) primarily codified which worker classification test into state law?

Accepted Answer

The ABC Test

Answer

The IRS Common Law Test

Answer

The Economic Realities Test

Answer

The Darden Factors Test

Question 2

What does Part B of the ABC Test require a hiring company to demonstrate about an independent contractor?

Accepted Answer

The worker performs work outside the usual course of the company's business

Answer

The worker is free from control and direction

Answer

The worker is customarily engaged in an independently established trade

Answer

The worker has a signed independent contractor agreement

Question 3

IRS Section 530 Safe Harbor relief protects companies from employment tax liability for worker misclassification if the company meets which primary condition?

Accepted Answer

The company has a reasonable basis for treating the worker as a contractor and has been consistent in that treatment

Answer

The company has fewer than 50 total workers

Answer

The company obtained a written opinion from an employment attorney

Answer

The company has never previously classified similar workers as employees

Question 4

Which IRS form can a business or worker file to request an official determination of a worker's employment status?

Accepted Answer

Form SS-8

Answer

Form W-9

Answer

Form 8919

Answer

Form 1040-ES

Question 5

Under the FLSA economic realities test, which factor examines whether the worker's services are integral to the employer's business?

Accepted Answer

Integral part of the principal's business

Answer

Permanency of the relationship

Answer

Degree of control by the employer

Answer

Opportunity for profit or loss

Question 6

Which of the following is a behavioral control factor under the IRS three-category test?

Accepted Answer

Whether the worker is provided training on how to do the job

Answer

Whether the worker can realize a profit or loss

Answer

Whether the worker has a significant financial investment in tools

Answer

Whether the worker has a written contract

Question 7

What is the key distinction between an Independent Contractor Agreement and an employee offer letter in managing worker classification risk?

Accepted Answer

An independent contractor agreement alone does not determine classification; actual working conditions must also reflect contractor status

Answer

The independent contractor agreement eliminates all co-employment liability

Answer

An employee offer letter creates no tax obligations for the employer

Answer

Only government contractors are required to use independent contractor agreements