Certified Payroll Professional Practice Exam 2025 – Your All-in-One Guide to Exam Success

Question: 1 / 400

Which Safe Harbor Rules are applicable for determining employee vs. independent contractor status according to the answer provided?

Past Audit Safe Haven

Judicial Precedent Safe Haven

Industry Practice Safe Haven

Reasonable Basis Test

The Reasonable Basis Test is the correct answer for determining employee vs. independent contractor status. This test provides a safe harbor for employers when classifying workers and requires that the classification is based on a reasonable basis. If an employer can show that they have a reasonable basis for treating workers as independent contractors, they can be protected from penalties for misclassification.

The other options are not applicable for determining employee vs. independent contractor status:

- Past Audit Safe Haven is not a recognized safe harbor for determining worker classification.

- Judicial Precedent Safe Haven is not a specific safe harbor rule for this purpose.

- Industry Practice Safe Haven does not provide a defined set of guidelines for determining worker classification.

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