NASCLA Labor Laws and Employment Practices 1

Question 1

Under IRS guidelines, which factor is MOST important in determining whether a worker is an employee or independent contractor?

Accepted Answer

The degree of behavioral and financial control the hiring party has over the worker

Answer

The IRS uses behavioral control, financial control, and type of relationship to classify workers, with the level of control being the primary determinant.

Question 2

What form must employers use to verify an employee's eligibility to work in the United States?

Accepted Answer

I-9

Answer

The I-9 Employment Eligibility Verification form must be completed for all new hires to verify their identity and authorization to work in the U.S.

Question 3

The Fair Labor Standards Act (FLSA) requires that non-exempt employees be paid overtime at what rate for hours worked over 40 in a workweek?

Accepted Answer

1.5 times the regular rate

Answer

The FLSA mandates time-and-a-half (1.5×) the regular rate of pay for all hours worked beyond 40 in a single workweek for non-exempt employees.

Question 4

Which federal tax form do employers use to report annual wages paid and taxes withheld for each employee?

Accepted Answer

Form W-2

Answer

Employers must provide each employee with a W-2 form showing annual wages earned and all taxes withheld, which employees use to file their income tax returns.

Question 5

How long must employers retain completed I-9 forms for a terminated employee?

Accepted Answer

1 year after termination or 3 years after date of hire, whichever is later

Answer

Federal law requires I-9 retention for 3 years from the date of hire OR 1 year after termination, whichever date is later.

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 1