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.

---

Definitions:

Words Of Negotiability

Phrases or terms in a financial document that grant the right to transfer it to another party, ensuring its negotiability.

Oral Agreement

A verbal commitment between parties to do or not do something, which can be legally binding, although proving the terms and existence can be challenging.

Payable

Refers to an amount of money that is owed by a person, company, or organization to another entity and is due to be paid.

Check

A written, dated, and signed instrument that directs a bank to pay a specific sum of money to the bearer or to a specified person or entity.