Contractors Business Law Exam:
Questions & Answers
If an employer's Federal Payroll Tax liability is $1000 how may they pay taxes?(Ans- quarterly
How many employees does it take for the Fair Labor Act to be applied?(Ans- 1
What accounting method records income when the service occurs and expense when they are incurred?(Ans- Accrual Method
What do the General Conditions of a contract do?(Ans- Outline roles of the owner, architect, and engineer.
You are purchasing an insurance policy with a monthly premium of $300. If you implement a safety program you can save 10% on the cost of the policy. The safety program costs $400 to start and $15 a month to maintain it. What would be the net difference in cost over three year period with a safety program?(Ans- Net saving of $140
Written construction contract change order should include a description of the modification to be made, any change in contract time and (Ans- The change in the contract dollar amount
Which of the following is a written agreement between the owner and contractor to change the contract?(Ans- change order
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What term identifies money withheld from progress payments to the contractor and paid after the completion of the project?(Ans- Retainage
When is final payment due?(Ans- Final inspection, acceptance by owner and submittal of proper documentation must occur
After hiring a disabled person, which of the following can't you do, according to the American with Disabilities Act?(Ans- Require a medical examination of just the person you suspect is disabled.
The percentage of completion method of accounting does what (Ans- recognizes profit as it is earned
Workers are on a job site where noise is very loud. Who is supposed to supply the workers with ear protection?(Ans- contractor (employer)
Where can you get accurate information about tax deposit schedules?(Ans- IRS Publication Circular E
Which of the following statements correctly describes the cash method of accounting?(Ans- Income / expenses are recorded at the time they are received / paid
What type of workplace insurance provides all the benefits required by law for employees' who are killed or injured as a result of their employment (Ans- Workers Compensation
If an employee is covered by Workers Compensation in the state of Utah and is doing a job in Colorado and gets injured, are they covered by Utah Workers Compensation?
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