Why is it important for an employer to classify a worker as either an employee or an independent contractor?
A) For reimbursement purposes
B) For child support obligations purposes
C) For government tracking purposes
D) For tax reporting purposes

Question

Quizplus · Accepted Answer

It is important for an employer to classify a worker as either an employee or an independent contractor for tax reporting purposes. This affects how the worker is paid and how taxes are withheld from their pay. Misclassifying a worker can result in penalties and back taxes for the employer.

Why Is It Important for an Employer to Classify a Worker