Salvatore and Annette Are Sales Managers for Acme USA

Salvatore and Annette are sales managers for Acme USA.Both work full-time in the Acme offices under the same manager,and share the same type of job responsibilities.Salvatore was hired as an employee,and is paid a salary.Required federal and state tax withholdings are made by Acme for Salvatore.Annette was hired as an independent contractor,and is paid by the project.No federal and state withholdings are taken for Annette,and she does not receive retirement or health insurance benefits.Which of the following is the likely true?

A) Acme properly classified Annette as an independent contractor.
B) Acme willfully misclassified Annette as an independent contractor and is liable under Fair Labor Standards Act of 1938.
C) Acme has no rights to withhold federal and state taxes for Salvatore if he is classified as a full-time employee.
D) Acme has to provide more health and retirement benefits to Annette than Salvatore because Annette is an independent contractor.