Which of the following statements concerning a comparison between employees and independent contractors is most accurate?

Question

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While there are differences between employees and independent contractors in terms of tax treatment and benefits, one of the most notable differences is that employees are typically eligible for nontaxable fringe benefits from employers, such as health insurance and retirement contributions, while independent contractors are not. Options A, C, and D are all incorrect. Employees and independent contractors deduct business expenses differently; employees deduct them as unreimbursed employee expenses, while independent contractors deduct them as business expenses. Employers typically withhold federal income taxes from compensation paid to employees, but not from compensation paid to independent contractors. Employers are only required to withhold either FICA or self-employment taxes from compensation paid to employees, not from compensation paid to independent contractors.

Which of the Following Statements Concerning a Comparison Between Employees