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 withholding and paying both the employee and employer portions of FICA taxes, while as an independent contractor, the individual is responsible for paying both portions themselves. However, there are benefits and drawbacks to both employee and independent contractor status, and the determination is based on factors such as control and independence over the work, financial arrangements, and other legal considerations.

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