OCPS Recordkeeping & Reporting Requirements 3 — Questions and Answers
Question 1: Form 1099-NEC must be furnished to independent contractors and filed with the IRS by what deadline?
- January 15
- January 31 (Correct answer)
- February 28
- March 31
Correct answer: January 31
Form 1099-NEC must be provided to recipients and filed with the IRS by January 31 of the year following payment.
Question 2: When must an employer retain Form I-9 for a terminated employee who worked for 4 years?
- 1 year after termination
- 3 years from date of hire
- 3 years after termination or 1 year after separation, whichever is later (Correct answer)
- 5 years from date of hire
Correct answer: 3 years after termination or 1 year after separation, whichever is later
I-9 forms must be retained for 3 years from the date of hire or 1 year after termination, whichever is later.
Question 3: Which payroll report provides state unemployment agencies with quarterly wage information for each employee?
- Form 940
- State SUI wage report (Correct answer)
- Form W-2
- Form 1099-MISC
Correct answer: State SUI wage report
State unemployment insurance (SUI) wage reports filed quarterly provide per-employee wage details to state agencies.
Question 4: An employer with annual FUTA tax liability of $500 must deposit it by:
- Monthly with payroll deposits
- The last day of the month after each quarter where liability exceeds $500
- Annually by January 31 (Correct answer)
- Semi-weekly with other tax deposits
Correct answer: Annually by January 31
If FUTA tax liability is $500 or less for the year, the employer may pay it annually by January 31.
Question 5: What is the penalty for intentionally disregarding the requirement to file correct information returns with the IRS?
- $50 per return
- $110 per return
- $290 per return
- $630 per return or 10% of unreported amount, whichever is greater (Correct answer)
Correct answer: $630 per return or 10% of unreported amount, whichever is greater
Intentional disregard of information return requirements carries a penalty of at least $630 per return or 10% of the reportable amount.
Question 6: Which section of Form W-4 allows an employee to claim exemption from federal income tax withholding?
- Step 1
- Step 2
- Step 3
- Step 4c (Correct answer)
Correct answer: Step 4c
Step 4(c) of Form W-4 includes the 'Exempt' line where qualifying employees claim withholding exemption.
Question 7: Under the ACA, applicable large employers (ALEs) must file Form 1095-C with employees by:
- January 15
- January 31
- March 1 (or March 2 if leap year) (Correct answer)
- April 15
Correct answer: March 1 (or March 2 if leap year)
ALEs must furnish Form 1095-C to employees by March 1 (or the first business day after February 28).
OCPS Recordkeeping & Reporting Requirements 3
Form 1099-NEC must be furnished to independent contractors and filed with the IRS by what deadline?