Which of the Following Is True for Employers Who Use

question 39

Multiple Choice

Which of the following is true for employers who use independent contractors?

• A)Payroll taxes are paid by the employer.
• B)Federal income taxes are charged at a reduced rate.
• C)Social Security taxes are higher than for regular employees.
• D)Fair Labor Standards Act overtime requirements do not apply.

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Definitions:

Collection System

A method or process used to gather or accumulate items, information, or debts from various sources.

Countermand

To revoke, cancel, or reverse an order or directive that has been previously issued.

Stop Payment Order

A request made to a bank by an account holder not to pay a check or payment that has been issued but not yet cashed.

Banker's Acceptance

A short-term financial instrument issued by a company but guaranteed by a bank as accepted for payment at a future date, often used in international trade.