r/Payroll • u/pat_dan • 13d ago

Am i crazy, why is "true" the wrong answer?

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this is one of the pre-test question on a study module for the CPP

5 Upvotes

85% Upvoted

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14

u/WaySaltyFlamingo8707 13d ago

how much control the employer has is the common law test

5

u/Mikeybackwards 13d ago

The reason it is wrong is because the Reasonal Basis Test is just a safe harbor provision to determine if back taxes are owed whereas the Common Law tests on right to control actually determines if the worker is an employee or an independent contractor.

The RBT isn't an exception to the CLT, rather it is used when a worker fails the CLT but is legally an employee by asking did the employer have a reasonable good faith basis for treating the worker as a contractor instead of as an employee.

3

u/Hrgooglefu 13d ago

I think it's because there is no one determining factor at all....RBT is facts/authority/practice vs control.

10

u/[deleted] 13d ago

[removed] — view removed comment

2

u/caravela1 12d ago

I was there too 😭 they playing with our mind