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.

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Definitions:

Social Problems

Issues within a society that affect a significant number of people and require collective action to be resolved.

Social Relations

Interactions between two or more individuals, groups, or organizations, influenced by societal norms, structures, and cultural contexts.

Individual Psychology

A branch of psychology founded by Alfred Adler that focuses on understanding the unique motivations of individuals and the importance of societal context for personality development.

Mass Media

Various mediums through which information and entertainment are delivered to a large audience, including television, newspapers, and the internet.