Nevada Contractor License Exam — All Questions
2 questions
On Nevada public-works projects above the statutory threshold, contractors must pay no less than the applicable prevailing wage. Which official determines Nevada's prevailing wage rates?
- a.The local homeowners' association
- b.The Nevada Labor Commissioner✓
- c.The general contractor's accountant
- d.The federal Department of Housing and Urban Development
Under NRS Chapter 338, the Nevada Labor Commissioner determines and publishes the prevailing wage rates that apply to qualifying public-works contracts. Contractors on those jobs must pay at least those rates and keep certified payroll records.NRS 338.030 (prevailing wage; Labor Commissioner)
A Nevada contractor pays a framer by the hour, sets his daily schedule, and supplies all the tools, but issues him a 1099. On audit, how is the worker most likely classified?
- a.As an independent contractor, because a 1099 was issued
- b.As a volunteer, because no withholding was taken
- c.Classification cannot be reviewed once a 1099 has issued
- d.As an employee, because the contractor controls the manner and means of the work✓
The right to control the manner and means of the work - schedule, tools, and methods - makes someone an employee regardless of the paperwork. Issuing a 1099 does not convert an employee into an independent contractor, and misclassification exposes the contractor to back payroll taxes and penalties.IRS Publication 15-A (common-law control test)