Which of the Following Statements Concerning a Comparison Between Employees

question 163

Multiple Choice

Which of the following statements concerning a comparison 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:

Parasympathetic Division

Part of the autonomic nervous system responsible for conserving energy and restoring the body to a state of calm after periods of stress or danger.

Preganglionic Neurons

Neurons of the autonomic nervous system that extend from the central nervous system to the autonomic ganglia.

Parasympathetic Division

Part of the autonomic nervous system responsible for rest and digestion functions, decreasing heart rate, and increasing intestinal activity.

Preganglionic Neurons

are neurons originating in the central nervous system that extend to autonomic ganglia, communicating signals to postganglionic neurons outside the central nervous system.