NASCLA Labor Laws and Employment Practices 2

Question 1

Workers' compensation insurance is primarily designed to cover which of the following for a contractor's employees?

Accepted Answer

Medical expenses and lost wages for employees injured on the job

Answer

Workers' compensation provides medical benefits and wage replacement to employees who suffer work-related injuries or illnesses, regardless of fault.

Question 2

What is the primary purpose of a payroll tax deposit schedule established by the IRS?

Accepted Answer

To ensure timely remittance of withheld taxes to the IRS

Answer

The IRS deposit schedule requires employers to remit withheld payroll taxes on a monthly or semi-weekly basis to avoid late-deposit penalties.

Question 3

Under the Family and Medical Leave Act (FMLA), eligible employees at covered employers are entitled to how many weeks of unpaid, job-protected leave per year?

Accepted Answer

12 weeks

Answer

FMLA provides eligible employees up to 12 weeks of unpaid, job-protected leave per year for qualifying family and medical reasons.

Question 4

Which of the following correctly describes the employer's Federal Unemployment Tax Act (FUTA) obligation?

Accepted Answer

Only the employer pays FUTA; it is not deducted from employee wages

Answer

FUTA is strictly an employer-paid tax; it comes entirely from employer funds and cannot be withheld or deducted from employee wages.

Question 5

A contractor misclassifies employees as independent contractors. What is a primary consequence of this misclassification?

Accepted Answer

The contractor may owe back payroll taxes, penalties, and interest to the IRS

Answer

Misclassifying employees as independent contractors can result in substantial back payroll taxes owed, plus significant IRS penalties and interest.

NASCLA - National Association of State Contractors Licensing Agencies Practice Test

NASCLA - National Association of State Contractors Licensing Agencies Practice Test

NASCLA Labor Laws and Employment Practices 2