Which of the Following Statements Concerning a Comparison Between Employees

question 163

Multiple Choice

Which of the following statements concerning a comparison between employees and independent contractors is most accurate?

• A)Employees and independent contractors deduct business expenses as miscellaneous itemized deductions.
• B)While employees are typically eligible for nontaxable fringe benefits from employers, independent contractors are not.
• C)Employers are required to withhold either FICA or self-employment taxes from compensation paid to employees and compensation paid to independent contractors.
• D)Employers typically withhold federal income taxes from compensation paid to employees and to independent contractors.

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Definitions:

Prescription Drug

Medication that legally requires a medical professional's authorization before it can be obtained or consumed.

Central Nervous System

The principal part of the nervous system comprising the brain and spinal cord, responsible for processing and transmitting information in the body.

Sedative

A type of drug that calms or soothes the central nervous system, reducing anxiety, excitement, or irritation.

Hallucinogen

A substance that causes changes in perception, mood, and cognitive processes, inducing hallucinations.