For an employer, there are advantages to classifying a worker as an independent contractor. Which of the following is a primary advantage?
A)The penalties for misclassifying an employee as an independent contractor are mild.
B)It saves the costs associated with employment insurance, workers' compensation, and the Canada Pension Plan.
C)Independent contractors typically have better work ethics and higher qualifications than do regular employees.
D)Independent contractors are typically more productive than regular employees are.

Question

Quizplus · Accepted Answer

Classifying a worker as an independent contractor allows the employer to avoid paying employment insurance, workers' compensation, and Canada Pension Plan contributions, which can result in significant cost savings. However, it is important to note that misclassifying an employee as an independent contractor can result in severe penalties, including fines and back taxes owed. The other options listed are not primary advantages to classifying a worker as an independent contractor.

For an Employer, There Are Advantages to Classifying a Worker