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:

Ostend Manifesto

A document from 1854 where US diplomats recommended the acquisition of Cuba by any means necessary, to expand the territory for slavery.

Monroe Doctrine

President James Monroe’s declaration to Congress on December 2, 1823, that the American continents would be thenceforth closed to European colonization, and that the United States would not interfere in European affairs.

Natural Rights

Fundamental rights believed to be inherent to humans, independent of any government or social system, often including life, liberty, and the pursuit of happiness.

Lincoln-Douglas Debates

A series of seven debates in 1858 between Abraham Lincoln and Stephen A. Douglas focusing on the issue of slavery in American territories.