Which of the Following Statements Regarding Independent Contractors and Employees

question 53

Multiple Choice

Which of the following statements regarding independent contractors and employees is true (ignore temporary provisions) ?

• A)Independent contractors pay Social Security and Medicare tax of 15.3%.
• B)Employees must pay unemployment taxes.
• C)Independent contractors and employees pay the same Social Security and Medicare tax rates.
• D)Independent contractors deduct their business expenses "from AGI."

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Definitions:

Manufacturing Statement

A financial document summarizing the costs associated with the production of goods within a specific period, including materials, labor, and overhead.