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:

Macro Level

Macro level refers to a wide-scale approach to understanding societal structures and processes, looking at societal phenomena as a whole rather than focusing on individuals.

Delinquency

Noncompliant behavior, typically of a minor, that is considered wrong according to legal or moral guidelines, often including acts like vandalism, theft, or truancy.

Bankruptcy

A legal process through which individuals or businesses unable to meet their financial obligations can seek relief from some or all of their debts.

National Deficit

The financial situation in which a government's expenditures surpass its revenues, leading to borrowing and debt accumulation.