Employee Definition Quiz

According to the IRS, what defines an employee?

• Someone who works independently and is not on the payroll

• Anyone who performs services for you if you control what they do and how they do it

• A person who is hired for temporary services without a contract

• An individual who pays their own employment taxes

Which of the following is NOT a characteristic of employees as described in the text?

• They are on your payroll as permanent members

• They have rights and pay that are protected by law

• They must find their own health insurance and retirement benefits

• They have taxes withheld from their pay

What is one of the benefits for a business to hire employees for long-term roles?

• Employees are less loyal to the business

• It is easier to task work to contractors rather than employees

• Employees can develop and train with the business and contribute those skills back to the organization

• Employees are responsible for their own employment costs

How many hours per week do full-time employees typically work?

• Less than 30 hours

• At least 30 hours

• 40 hours exactly

• More than 40 hours

What are full-time employees often paid?

• Commissions

• Hourly wages

• Salaries

• Bonuses

What classification does a business with 50 or more full-time employees fall under according to the Affordable Care Act?

• Small Employer

• Medium Employer

• Applicable Large Employer

• Non-Applicable Employer

Are part-time employees entitled to the same healthcare coverage or benefits as full-time employees?

• Yes, they are entitled to the same benefits.

• No, they are not entitled to the same benefits but can receive a reduced version.

• Yes, but only if they work more than 20 hours per week.

• No, they never receive any benefits.

What is the usual basis for part-time employees' pay?

• Salaries

• Hourly wages

• Profit sharing

• Stock options

Temporary employees are hired on a short-term basis primarily due to what reason?

• To replace permanent employees who are on vacation

• Due to a temporarily increased need for staffing

• For long-term projects that last several years

• To save costs on employee benefits

What is a key difference between seasonal employees and temporary employees?

• Seasonal employees are not entitled to Social Security benefits

• Seasonal employees are hired to meet a short-term increased need for staffing on a seasonal basis

• Seasonal employees are hired through an agency

• Seasonal employees are permanent employees of the business