Certified Payroll Professional Practice Exam

What is the focus of the Common Law Test when determining employee classification?

1. Documentation of factors

2. Consideration of industry practices

3. Reviewing past audits

4. Assessing statutory guidelines

The correct answer is: Documentation of factors

The focus of the Common Law Test is the documentation of factors to determine employee classification. This means that the focus is on examining and evaluating the written evidence and information related to the factors that determine whether an individual is classified as an employee or an independent contractor. The other options, B, C, and D, are incorrect because they do not directly relate to the act of determining employee classification through documentation of specific factors. Option B refers to industry practices, which may be considered but are not the main focus of the Common Law Test. Option C mentions reviewing past audits, which may provide some insight but is not the primary focus. Option D mentions assessing statutory guidelines, which may be applicable in some cases but is not the main focus of the Common Law Test. Therefore, the correct answer is A, as it accurately describes the main focus of the Common Law Test.