Which of the Following Statements Regarding Employee Versus Independent Contractor

question 96

Multiple Choice

Which of the following statements regarding employee versus independent contractor status is false?

• A) The determination as to whether a worker is an employee or an independent contractor is based on a subjective set of guidelines.
• B) An employer has a financial incentive to classify a worker as an independent contractor instead of an employee.
• C) The IRS has a higher probability of collecting income and payroll taxes from an independent contractor than from an employee.
• D) If the IRS reclassifies a worker from independent contractor to employee, the employer can become liable for the employee's share of unpaid payroll taxes.

Identify the criteria for choosing between different estimators.

Comprehend the impact of sample variance on estimator bias.

Recognize the practical implications of estimation in real-world scenarios.

Articulate the theoretical background of sampling distributions.

---

Definitions:

Anti-Employment Discrimination Legislation

Laws designed to prevent discrimination in hiring, promotion, job assignment, termination, and compensation based on certain specified characteristics.

Female/Male Earnings Ratio

A measure comparing the average earnings of female workers to those of male workers, often utilized to highlight gender pay gaps in the workforce.

Law of Diminishing Returns

An economic principle stating that if one factor of production is increased while others remain constant, the overall returns will eventually decrease after a certain point.

Marginal Cost

The financial outlay for making one extra unit of a product or service.