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:

Pie Chart

A circular statistical graphic which is divided into slices to illustrate numerical proportion.

Frequency Polygon

A graphical device for understanding the shapes of distributions. They are a type of line graph.

Dichotomous

A characteristic of variables that can take on exactly two distinct and mutually exclusive values.

Level Of Measurement

The classification of data based on the nature and the mathematical properties of the data values, such as nominal, ordinal, interval, and ratio scales.