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:

Final Exam Week

A designated period at the end of an academic term during which students take final exams, assessing their knowledge and understanding of the course material.

Stress

A physical and emotional reaction that people experience as they encounter challenges in life; can be due to both positive and negative experiences.

Optimist

An individual who tends to maintain a positive outlook on life and anticipates favorable outcomes, focusing on potential opportunities even in the face of difficulties.

Denial

A defense mechanism where an individual refuses to accept reality or facts, blocking external events from awareness.