The IRS Is Conducting an Investigation of the Construction Industry

question 49

Multiple Choice

The IRS is conducting an investigation of the construction industry because contractors routinely classify carpenters,dry-wallers,and plumbers who work on all of their projects as independent contractors.These craftsmen report for work on different jobs,but all of the jobs are managed by the same contracting firm.Which of the following will be most important in determining whether the craftsmen are employees rather than independent contractors?

• A)That they bring their own tools.
• B)That they determine which jobs they will work on and which they will not.
• C)That they are told to report for work on which days and at what time.
• D)That they work for other contractors.

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Definitions:

Implementation Phase

The stage in a project or plan where strategies are executed and the ideas or concepts are put into action.

Evaluation Phase

A stage in a process where the outcomes are assessed to determine their success, effectiveness, or value compared to the stated objectives or criteria.

Planning Gap

The difference between a company’s current performance and its desired goals, often leading to strategic changes to bridge the gap.

Contribution Margin

A financial metric that represents the difference between sales revenue and variable costs, indicating how much revenue contributes to fixed costs and profit.