Which of the Following Statements Concerning Differences Between Employees and Independent

question 110

Multiple Choice

Which of the following statements concerning differences between employees and independent contractors is most accurate?

• A) Employees and independent contractors deduct business expenses as miscellaneous itemized deductions.
• B) While employees are typically eligible for nontaxable fringe benefits from employers, independent contractors are not.
• C) Employers are required to withhold either FICA or self employment taxes from compensation paid to employees and compensation paid to independent contractors.
• D) Employers typically withhold federal income taxes from compensation paid to employees and to independent contractors.

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Definitions:

Nonrenewable Natural Resources

Natural resources such as fossil fuels and minerals that do not replenish on a human time scale and hence are finite.

Fixed Supply

A situation where the quantity of a good or resource available does not change in response to its price.

Fish

Aquatic animals that are typically harvested either from the wild (fishing) or from farms (aquaculture) for food, recreational, or commercial purposes.

Open Ocean

The vast, deep, and relatively unexplored parts of the sea, far from land and typically beyond national jurisdiction.