Apply Payroll Tax Requirements Practice Test

A sole proprietorship retail store hires a delivery driver who sets their own route and schedule, uses their own vehicle, can accept deliveries for other businesses, and is paid per delivery with no training provided. The owner is determining whether to treat the driver as an employee for FICA, FUTA, and SUTA purposes and whether to issue Form W-2 or Form 1099-NEC. What is the correct classification for this worker?

A corporation identifies that it overreported wages on its previously filed quarterly Form 941 for the prior quarter, which caused an overstatement of Social Security and Medicare (FICA) taxes. The corporation wants to correct the federal payroll tax discrepancy and request an adjustment or refund as allowed. Which document should be filed to correct the payroll tax discrepancy?