Employee status is always better than independent contractor status for a taxpayer because the employee is responsible for paying the employee portion of the FICA taxes.

Question

Quizplus · Accepted Answer

This statement is false. As an employee, the employer is responsible for paying a portion of the FICA taxes, while the employee is responsible for paying the other portion through withholding. As an independent contractor, the individual is responsible for paying the entire FICA tax themselves, but they may have other tax benefits such as deducting business expenses. Whether it is advantageous to be an employee or independent contractor depends on individual circumstances and factors.

Employee Status Is Always Better Than Independent Contractor Status for a Taxpayer