Which of the Following Statements Concerning the Client-Independent Contractor Relationship

question 29

Multiple Choice

Which of the following statements concerning the client-independent contractor relationship is false?

• A)A client may only accept or reject the final results of the work of an independent contractor.
• B)An independent contractor is entitled to all the fringe benefits offered to the client's employees.
• C)At the end of each tax year,a client issues a Form 1099 to an independent contractor reporting the compensation paid during the year.
• D)An independent contractor must pay self-employment taxes if self-employment income is greater than $400.

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Definitions:

Variable

An element, feature, or factor that is likely to vary or change.

Observations

Data collected or measured during an experiment or survey.

Measurements

Measurements refer to the size, length, or amount of something, determined through quantitative comparison with a standard unit.

Element

A fundamental or essential constituent of a composite entity; in contexts like chemistry, an element is a substance that cannot be broken down into simpler substances by chemical means.