Distinguishing between employees and independent contractors is important because:

Question

Quizplus · Accepted Answer

All of the options listed are reasons why it is important for employers to distinguish between employees and independent contractors. Withholding income tax for employees is a requirement, while it is not necessary for independent contractors. Employers have more legal obligations and responsibilities for employees, such as providing workers' compensation, while they have fewer obligations to independent contractors. If an employer can prove that a worker is an independent contractor, they may be able to defend their actions under employment laws.

Distinguishing Between Employees and Independent Contractors Is Important Because