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

Question

Quizplus · Accepted Answer

Classifying a worker as an employee or an independent contractor is important for tax reporting purposes. Employers have specific tax obligations for employees, such as withholding and paying payroll taxes, while independent contractors are responsible for paying their own taxes. Misclassifying a worker can result in penalties and fines from the government.

Why Is It Important for an Employer to Classify a Worker