Florida General Contractor Exam — All Questions

A new Florida construction employer (still at the new-employer rate) hires a laborer who earns $30,000 in wages during the calendar year. How much Florida reemployment tax is owed on that employee for the year?

• a.$1,620
• b.$189✓
• c.$420
• d.$810

Only the first $7,000 of each employee's annual wages is taxable, and the new-employer rate is 2.7%. So $7,000 x 0.027 = $189; wages above $7,000 are not subject to reemployment tax.Florida Department of Revenue, Reemployment Tax; Fla. Stat. Ch. 443

For a Florida construction corporation, what are the limits on the workers'-compensation officer exemption?

• a.Only the president may be exempt, with no ownership requirement
• b.No more than three officers, each owning at least 10% of the stock✓
• c.Any number of officers may be exempt, with no ownership requirement
• d.Up to five officers, each owning at least 5% of the stock

In construction, no more than three corporate officers (or LLC members) may elect exemption, and each must own at least 10% of the company. Non-construction has no three-officer cap and no ownership floor.Fla. Stat. §§ 440.02, 440.05

Which statement correctly describes what Form I-9 and Form W-4 each accomplish?

• a.The I-9 reports year-end wages to the Social Security Administration; the W-4 reports nonemployee compensation of $600 or more
• b.The I-9 verifies identity and work authorization; the W-4 tells the employer how much federal income tax to withhold✓
• c.Both forms are filed with the IRS within 3 business days of hire
• d.The I-9 sets the employee's federal income-tax withholding allowances; the W-4 verifies identity and work eligibility

Form I-9 verifies a new hire's identity and authorization to work in the U.S. (and is kept, not filed). Form W-4 tells the employer how much federal income tax to withhold. Florida has no state income tax, so there is no state W-4.USCIS Form I-9 / M-274; IRS Form W-4

A contractor pays a genuine independent subcontractor $4,500 during the year and a regular payroll employee $52,000. Which reporting forms apply?

• a.1099-NEC for both
• b.W-2 for both
• c.1099-NEC for the subcontractor; W-2 for the employee✓
• d.W-2 for the subcontractor; 1099-NEC for the employee

W-2 reports an employee's wages and withholding; 1099-NEC reports $600 or more paid to a nonemployee (independent contractor). The $4,500 to the sub exceeds the $600 threshold, so a 1099-NEC is required.IRS General Instructions for Forms W-2 and 1099

A general contractor pays a drywall hanger by the hour, tells him which houses to report to each day, supplies the lifts and screw guns, and has kept him busy full-time for two years, yet issues him a 1099-NEC. Under the IRS common-law test, what is the most likely result on audit?

• a.He remains an independent contractor, because he was paid gross with no withholding and gets a 1099-NEC
• b.Classification cannot be challenged once a signed independent-contractor agreement is on file
• c.The 1099-NEC controls, so he is a valid independent contractor
• d.He is reclassified as an employee, and the GC owes back FICA, FUTA, and reemployment tax plus penalties✓

The right to control the manner and means of the work makes someone an employee, not the paperwork. Control over schedule, tools, and methods plus a permanent, core relationship points to employee status, exposing the GC to back employer taxes and penalties.IRS Publication 15-A (common-law control test)

A Florida construction firm has 18 employees. Which anti-discrimination coverage statement is correct?

• a.Only the federal Equal Pay Act applies, since it has no employee minimum
• b.The federal ADEA applies at 15 employees, but the Florida Civil Rights Act starts at 25
• c.None of the major federal or state statutes apply because each of them begins at 20 employees
• d.Title VII, the ADA, and the Florida Civil Rights Act all apply, but the federal ADEA does not✓

Title VII, the ADA, and the Florida Civil Rights Act each begin at 15 employees, so all three cover an 18-employee firm. The federal ADEA needs 20 employees, so it does not apply—though the Florida Civil Rights Act's age protection (starting at 15) still does.42 U.S.C. § 2000e; 29 U.S.C. § 621; Fla. Stat. Ch. 760

Within how many days must a Florida employer report a newly hired employee to the Florida New Hire Reporting Center?

• a.Within 20 days of the hire date✓
• b.Within 30 days
• c.Within 3 business days
• d.By January 31 of the following year

Florida employers must report every newly hired or rehired employee to the Florida New Hire Reporting Center within 20 days of the hire date; this feeds child-support enforcement. (The 3-business-day figure applies to I-9 Section 2.)Fla. Stat. § 409.2576

A construction employer that operates with employees but carries no workers'-compensation coverage faces what enforcement consequence in Florida?

• a.Automatic revocation of the contractor's license by DBPR and no monetary penalty
• b.A written warning for a first violation, with no stop-work order
• c.A flat $250 fine per uninsured employee
• d.A stop-work order plus a penalty of twice the premium that should have been paid✓

Operating an uninsured construction crew exposes the contractor to a stop-work order and a penalty equal to twice (2x) the evaded premium.Fla. Stat. § 440.107

The federal Family and Medical Leave Act (FMLA) applies to private employers with how many employees, and what does it provide?

• a.15 or more employees; up to 12 weeks of paid, job-protected leave
• b.25 or more employees; up to 6 weeks of unpaid parental leave a year
• c.50 or more employees; up to 12 weeks of unpaid, job-protected leave✓
• d.20 or more employees; unlimited paid sick leave

FMLA applies to private employers with 50 or more employees (within a 75-mile radius) and entitles eligible employees to up to 12 weeks of unpaid, job-protected leave per year. The leave is unpaid, and eligibility also requires 12 months and 1,250 hours of service.29 U.S.C. §§ 2601 et seq.

On which construction projects does the federal Davis-Bacon Act require paying the DOL-determined local prevailing wage and filing certified payroll?

• a.Federally funded or federally assisted construction contracts over $2,000✓
• b.All Florida construction jobs over $100,000, under the state wage statute
• c.Any private construction job over $50,000 in contract value
• d.Only projects using union labor

Davis-Bacon applies to federally funded or assisted construction contracts over $2,000, requiring local prevailing wages plus certified weekly payroll (WH-347). Florida has no state 'little Davis-Bacon' law—prevailing wage is a federal-funding trigger, not a state one.40 U.S.C. §§ 3141–3148

A certified general contractor whose license was issued after passing the state examination is based in Tampa and wants to contract for a project in Miami. Which statement is correct?

• a.The contractor must first obtain a Miami-Dade County competency card and register it with DBPR before bidding.
• b.A certified contractor holds statewide scope and may contract for the Miami work without obtaining additional local licensing.✓
• c.The contractor must convert the certificate to a registered license in each county outside the home jurisdiction before contracting.
• d.A certified contractor may legally work only in the county whose competency exam he passed, unless the CILB grants a written waiver.

A certified contractor passes the state exam and carries statewide scope, so he may contract anywhere in Florida without additional local approval. A registered contractor, by contrast, is limited to the local jurisdiction that issued his competency card.Ch. 489, Part I, F.S. (ss. 489.105, 489.113, 489.117)

A drywall subcontractor with no direct contract with the owner first delivers labor and materials to a residential job. To preserve its lien rights, by when must it serve the Notice to Owner?

• a.Within one year after it first furnishes labor or materials, at any time before the owner makes final payment.
• b.Within 45 days after it first furnishes labor or materials (and before final payment to the contractor).✓
• c.Within 90 days after it last furnishes labor or materials to the job.
• d.Within 45 days after it last furnishes labor or materials, measured from the date of the final delivery ticket.

A lienor not in privity with the owner must serve the Notice to Owner within 45 days of FIRST furnishing, and before final payment. The clock runs from first furnishing, not last, which distinguishes it from the Claim of Lien.s. 713.06(2)(a), F.S.

An unpaid material supplier last delivered materials to a project on May 20. To keep its lien enforceable, by when must the Claim of Lien be recorded?

• a.Within 45 days after last furnishing materials to the project site.
• b.Within 45 days after first furnishing materials to the job.
• c.Within one year after last furnishing materials.
• d.Within 90 days after last furnishing labor, services, or materials.✓

The Claim of Lien must be recorded within 90 days after the lienor LAST furnishes to the project. Note the pairing the exam exploits: Notice to Owner runs 45 days from first furnishing; Claim of Lien runs 90 days from last furnishing.s. 713.08(5), F.S.

A lienor has properly recorded a Claim of Lien but the owner still refuses to pay. Absent any owner action to shorten the period, by when must the lienor file suit to foreclose the lien?

• a.Within 90 days of recording the Claim of Lien, or the lien is extinguished by operation of law.
• b.Within 45 days of last furnishing.
• c.Within one year of the date the Claim of Lien was recorded, or the lien expires.✓
• d.Within five years of recording the Claim of Lien, under the general statute of limitations on written contracts.

A suit to enforce a recorded lien must be filed within one year of recording, or the lien becomes unenforceable. An owner can shorten this to 60 days with a Notice of Contest, or to 20 days with a show-cause complaint.ss. 713.22, 713.21, F.S.

Under the Construction Lien Law, which of the following lienors is NOT required to serve a Notice to Owner to preserve lien rights?

• a.A subcontractor not in privity with the owner whose subcontract exceeds $2,500 in contract value.
• b.A laborer who provides only personal labor, with no materials and no subcontract of their own.✓
• c.A material supplier furnishing materials to a subcontractor rather than to the general contractor.
• d.A sub-subcontractor.

The statute expressly carves out laborers: 'all lienors under this section, except laborers,' must serve the Notice to Owner. Subcontractors, sub-subcontractors, and material suppliers not in privity must still serve it.s. 713.06(2)(a), F.S.

Before a contractor in direct contract with the owner may file suit to enforce a construction lien, the law requires a Contractor's Final Payment Affidavit. When must it be furnished to the owner?

• a.At least 90 days before filing suit to foreclose the lien.
• b.At the same time that the Claim of Lien is recorded.
• c.At least 5 days before filing suit to enforce the lien.✓
• d.Within 45 days after the project is completed and accepted.

The contractor must give the owner the sworn Final Payment Affidavit at least 5 days before filing the enforcement suit. It is a condition precedent, so skipping it defeats the suit regardless of the amount owed.s. 713.06(3)(d), F.S.

A residential remodeling contractor operates as a business in the construction industry and hires its first field employee. What is its workers' compensation obligation?

• a.Coverage is mandatory, because in the construction industry it is required with 1 or more employees.✓
• b.Coverage is required only once the business has 4 or more full-time employees on the payroll at one time.
• c.The business is exempt until it has 5 or more employees or an annual payroll over $50,000.
• d.Coverage is optional until the business has 3 or more employees, and may be replaced by an accident policy.

The construction industry has essentially no small-employer exemption: coverage is mandatory at 1 or more employees. Non-construction employers are not required to carry coverage until they reach 4 or more employees.s. 440.02(17), F.S.

A construction corporation wants to elect workers' compensation exemptions for its corporate officers. What does Chapter 440 allow?

• a.No more than 2 corporate officers may be exempt, and each must own at least 51%.
• b.An unlimited number of corporate officers may be exempt, provided each owns at least 25% of the stock.
• c.No more than 3 corporate officers may be exempt, and each must own at least 10% of the corporation.✓
• d.No more than 3 corporate officers may be exempt, and each must own at least 25% of the corporation.

A construction corporation may exempt no more than 3 corporate officers, each owning at least 10% of the corporation, by filing the election with DBPR. The exemption covers only that officer; the company must still cover its non-officer employees.ss. 440.02(15), 440.05, F.S.

An owner wants to transfer a $60,000 claim of lien off her property to a cash deposit or surety bond under s. 713.24. Beyond the $60,000 claim amount and three years' statutory interest, how much must be added to cover attorney's fees and court costs?

• a.$15,000 — the greater of $5,000 or 25% of the $60,000 demanded.✓
• b.$10,000 — a flat statutory surcharge for fees and costs on any lien transfer.
• c.A flat $5,000 for fees and costs, regardless of the claim size.
• d.$6,000 — a flat 10% of the $60,000 demanded, the statutory minimum.

The transfer amount equals the claim, plus 3 years' interest at the legal rate, plus the GREATER of $5,000 or 25% of the amount demanded. On a $60,000 claim, 25% is $15,000, which exceeds $5,000, so $15,000 is added.s. 713.24, F.S.

A subcontractor is unpaid for work on a project covered by a conditional payment bond under s. 713.245, and the owner never released to the contractor the money attributable to that work. What is the sub's position?

• a.The bond covers claims only to the extent the contractor was paid, and the sub retains its lien rights for the unpaid balance.✓
• b.The bond is the sub's sole remedy and its lien rights are extinguished the moment the bond is recorded, just as with an unconditional bond.
• c.The surety must pay the sub in full within 90 days regardless of whether the owner ever released the money to the general contractor.
• d.The sub has no remedy of any kind once a conditional bond is recorded.

A conditional payment bond limits the surety's exposure to what the contractor was actually paid, so the statute preserves the sub's right to serve a Notice to Owner and record a Claim of Lien for the unpaid portion. An unconditional 713.23 bond, by contrast, pays regardless and replaces the lien.ss. 713.23, 713.245, F.S.

A homeowner signs a direct contract for a permitted job to repair and replace an existing HVAC system for $12,000. Must a Notice of Commencement be recorded before the first inspection?

• a.No — a direct contract to repair or replace an existing HVAC system for less than $15,000 is exempt from that requirement.✓
• b.Yes — every permitted job requires a recorded Notice of Commencement before the first inspection, regardless of contract price.
• c.Yes — because the contract price exceeds $5,000.
• d.No — because any direct contract of less than $25,000 is exempt from the recorded Notice of Commencement requirement of s. 713.135.

Permitted work generally needs a Notice of Commencement before the first inspection when the direct contract exceeds $5,000, but the statute carves out a contract to repair or replace an existing HVAC system for less than $15,000.s. 713.135, F.S.

During a declared state of emergency, a person engages in contracting without a license within the disaster area for the first time. How is the offense generally classified?

• a.A second-degree felony.
• b.A third-degree felony, even on a first offense.✓
• c.A noncriminal citation carrying only an administrative fine.
• d.A first-degree misdemeanor, the same as an ordinary first offense.

Ordinarily a first unlicensed-contracting offense is a first-degree misdemeanor and repeats become a third-degree felony. But unlicensed contracting in a declared disaster area is charged as a third-degree felony even on a first offense, targeting post-storm repair scams.ss. 489.127, 489.13, F.S.