South Carolina Contractor License Exam — All Questions

South Carolina's Illegal Immigration Reform Act requires private employers to verify new hires' work authorization how?

• a.By checking a driver's license only
• b.By enrolling in and using the federal E-Verify program for each new hire✓
• c.There is no work-authorization verification requirement in South Carolina
• d.By filing a Form W-2 at the time of hire

South Carolina requires all private employers to enroll in and use the federal E-Verify program to confirm the work authorization of new hires. This is stricter than federal law, which does not mandate E-Verify for most private employers.S.C. Code Title 41, Ch. 8 (SC Illegal Immigration Reform Act - E-Verify)

A South Carolina general contractor pays a laborer hourly, controls his daily schedule, and supplies his tools, but issues him a 1099. On audit, the laborer is most likely:

• a.A valid independent contractor, because a 1099 was issued
• b.Classified as a volunteer, because no tax was withheld
• c.Not reviewable once a contractor agreement is signed
• d.Reclassified as an employee, exposing the contractor to back payroll taxes and penalties✓

The right to control the manner and means of the work - schedule, tools, and methods - makes someone an employee, regardless of the 1099. Misclassifying an employee as an independent contractor exposes the contractor to back FICA, FUTA, and unemployment taxes plus penalties.IRS Publication 15-A (common-law control test)