Game Apps Corporation hires independent contractors instead of employees.If these workers are determined to have been misclassified, Game Apps may be liable for
A)a seniority and tenure system.
B)back payroll taxes.
C)copyright and trademark royalties.
D)job reinstatement.

Question

Quizplus · Accepted Answer

If workers are misclassified as independent contractors instead of employees, Game Apps may be liable for back payroll taxes. This is because employers are responsible for paying certain taxes for their employees, such as Social Security and Medicare taxes, but not for independent contractors. If Game Apps is found to have misclassified employees as independent contractors, they could be required to pay these back taxes.

Game Apps Corporation Hires Independent Contractors Instead of Employees