Classifying Someone as an Independent Contractor Rather Than an Employee

question 37

True/False

Classifying someone as an independent contractor rather than an employee allows the employer to avoid paying Social Security,unemployment,and workers compensation.

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Definitions:

Future Sacrifice

The expected loss or cost in the future due to present decisions or commitments.

Essential Characteristic

A fundamental or inherent property that defines an entity, distinguishing it from others.

Liability

A company's financial debts or obligations that arise during the course of business operations.

Cumulative Preferred Stock

A type of preferred stock that entitles its holders to dividends that accrue if not paid in any year, payable before any dividends to common stockholders.