Not Having to Pay Social Security, Unemployment, or Workers' Compensation

question 59

True/False

Not having to pay Social Security, unemployment, or workers' compensation costs to independent contractors offers major advantages to the employer.

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Definitions:

Annuity Contract

A financial product issued by an insurance company that offers fixed or variable payments to an individual, typically beginning at retirement.

Expected Return

The anticipated amount of profit or loss an investment is to generate over a specific time period.

SIMPLE Pension Plan

A retirement savings plan that allows employees and employers to contribute to individual retirement accounts (IRAs) setup for employees, typically suitable for small businesses.

Annual Contribution

The total amount of money contributed to a specific account or fund within a single fiscal year.