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APA FPC-Remote Exam - Topic 6 Question 3 Discussion

Actual exam question for APA's FPC-Remote exam
Question #: 3
Topic #: 6
[All FPC-Remote Questions]

When an employer engages with a leasing company to lease an employee, the employer does NOT:

Show Suggested Answer Hide Answer
Suggested Answer: B

Leasing companies (PEOs) handle payroll and wage reporting.

Employers still set rates (C) and supervise work (D).


IRS PEO Tax Responsibilities

by Carlee at Apr 04, 2025, 05:48 AM

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Malcom
5 months ago
They still report wages though, right?
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Susy
5 months ago
Wait, can they really not set the pay? Sounds weird.
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Lawrence
6 months ago
So they just supervise? That’s interesting!
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Jaclyn
6 months ago
Totally agree, that's how leasing works!
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Cyndy
6 months ago
Employers don’t hire or fire leased employees.
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Enola
6 months ago
I believe they definitely report wages, but I think they don't hire and fire directly. That seems like the right choice.
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Gerald
7 months ago
I'm a bit uncertain about whether they can supervise the work. I feel like they might still have some oversight.
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Tori
7 months ago
I remember a practice question about leasing companies where the employer didn't set the rate of pay. That might be the answer here too.
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Eliseo
7 months ago
I think the employer might still have some control over hiring and firing, but I'm not entirely sure.
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Katina
7 months ago
This is a tricky one. I'm not totally sure what the right answer is, but I'm going to eliminate the options that seem clearly wrong, like "hire and fire" since that's the whole point of using a leasing company. Then I'll try to reason through the remaining choices.
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Avery
7 months ago
Okay, I think I've got this. The key is that the employer doesn't have control over the leased employee in the same way they would for a directly hired worker. So they can't set the rate of pay or supervise the work - that's all handled by the leasing company. I'm feeling pretty confident about this one.
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Lezlie
8 months ago
Hmm, I'm a bit unsure about this one. I know the employer doesn't directly hire or fire the leased employee, but I'm not totally clear on the other responsibilities they don't have. I'll need to re-read the question carefully.
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Silva
8 months ago
This seems like a straightforward question about the relationship between an employer and a leasing company. I'll need to think carefully about the key responsibilities that the employer doesn't have in this scenario.
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Janine
1 year ago
Ah, I see now. The employer doesn't get to do any of the typical employer duties like hiring, firing, or setting pay. That's all the leasing company's responsibility.
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Stefany
11 months ago
D) Supervise the work
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Chi
11 months ago
C) Set rate of pay
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Olene
12 months ago
B) Report wages
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Ammie
12 months ago
A) Hire and fire
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Bobbye
1 year ago
Haha, this question is like a game of 'which one of these is not like the other?' The employer has to be hands-off with the leased employee.
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Chantell
11 months ago
C) Set rate of pay
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Muriel
11 months ago
B) Report wages
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Kanisha
12 months ago
A) Hire and fire
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Jesusa
1 year ago
I think option D is the correct answer. The employer doesn't supervise the work of the leased employee, that's the leasing company's job.
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Antione
12 months ago
C) Set rate of pay
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Almeta
1 year ago
B) Report wages
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Veronika
1 year ago
A) Hire and fire
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Cammy
1 year ago
Hmm, I'm not sure. Doesn't the employer still have some control over the leased employee's work, like setting the rate of pay and supervising them? This is a tricky question.
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Angella
11 months ago
That makes sense. The employer still has some control, but the leasing company has more responsibility.
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Sheridan
12 months ago
The leasing company actually takes care of setting the rate of pay and supervising the work.
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Yun
12 months ago
D) Supervise the work
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Catarina
12 months ago
C) Set rate of pay
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Vilma
12 months ago
B) Report wages
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Natalya
1 year ago
A) Hire and fire
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Almeta
1 year ago
I agree with Frank. The employer is basically outsourcing the HR responsibilities to the leasing company.
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Frank
1 year ago
Option A seems to be the correct answer. The employer doesn't have the ability to hire and fire the leased employee since that's handled by the leasing company.
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Michal
1 year ago
Yes, the employer still supervises the work even though the employee is leased.
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Kelvin
1 year ago
D) Supervise the work
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Joanna
1 year ago
That makes sense, the leasing company is responsible for that aspect.
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Sage
1 year ago
A) Hire and fire
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Della
1 year ago
But if the employer is leasing the employee, wouldn't they still be responsible for reporting wages?
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Mariann
1 year ago
I disagree, I believe the answer is D) Supervise the work.
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Della
1 year ago
I think the answer is B) Report wages.
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