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:

Power

The ability or potential to control or sway the actions of others or the path of events.

Managers

Individuals in an organization responsible for planning, directing, and overseeing the operations and activities of a team or department to achieve the set goals.

Resources

Essential assets or materials needed to carry out tasks, projects, or achieve goals.

Subunit Power

The extent of influence that a department or division within an organization has over decisions and resource allocations.