A traveling salesperson who solicits and transmits to the principal orders for merchandise for resale is considered an employee under FUTA.

Question

Quizplus · Accepted Answer

Under the Federal Unemployment Tax Act (FUTA), a traveling salesperson who solicits and transmits orders for merchandise for resale from retailers, wholesalers, contractors, or operators of hotels, restaurants, or similar establishments on behalf of their principal is generally considered an employee. This classification is part of the statutory definition aimed at ensuring such workers are covered for unemployment insurance purposes.

A Traveling Salesperson Who Solicits and Transmits to the Principal