Which of the following is TRUE for employers who use independent contractors?
A) Payroll taxes are paid by the employer.
B) Federal income taxes are charged at a reduced rate.
C) Social Security taxes are higher than for regular employees.
D) Fair Labor Standards Act overtime requirements do not apply.

Question

Quizplus · Accepted Answer

For employers, there are advantages to claiming that someone is an independent contractor. For one thing, the FLSA's overtime and most other requirements do not apply. For another, the employer does not have to pay unemployment compensation payroll taxes, Social Security taxes, or city, state, and federal income taxes or compulsory workers' compensation for that worker.

Which of the Following Is TRUE for Employers Who Use