You Started Your Own Business 2 Years Ago, and Needed

question 10

Multiple Choice

You started your own business 2 years ago, and needed several part-time workers, but did not want and could not afford to pay them a minimum wage, or payroll taxes, so you classified them as independent contractors. At the time, a decent argument could be made that they were independent contractors, as there had been no rulings on your particular arrangement. Recently, for a business very similar to yours, the Department of Labor ruled that the workers of the business were employees, and not independent contractors. What should you do? ​

• A)nothing, unless the Department of Labor challenges your arrangement
• B)nothing, unless one of the workers complains
• C)have all of the workers sign independent contractor agreements immediately
• D)begin to treat them as employees, including paying a minimum wage, and withholding income taxes

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Definitions:

Cumberland Road

Also known as the National Road, it was the first major improved highway in the United States to be built by the federal government, stretching from Cumberland, Maryland, to Vandalia, Illinois, initiated in 1811 to facilitate westward expansion.

Manufacturing

The industrial production of goods from raw materials through processes like machining, assembly, and fabrication, often on a large scale.

Land

A crucial natural resource that constitutes the earth's surface, including fields, forests, and bodies of water, often used for agriculture, housing, and development.

Technological Improvements

Refers to the advancements and enhancements made in technology that lead to better efficiency, productivity, and capabilities in various fields.