Kevin provides auditing services to the Global Trusted Bank as an independent contractor.Thus,the bank is responsible for paying Kevin's federal unemployment compensation (FUTA),Social Security (FICA),and the FICA excise tax.

Question

Quizplus · Accepted Answer

Global Trusted Bank is not responsible for paying Kevin's Social Security (FICA), the FICA excise tax, and federal unemployment compensation (FUTA) as Kevin is an independent contractor. An employer who maintains employees has the responsibility to pay Social Security (FICA), the FICA excise tax, Railroad Retirement Tax Act (RRTA) withholding amounts, federal unemployment compensation (FUTA), IRS federal income tax withholdings, Medicare, and state taxes. In addition, it is the employer's responsibility to withhold a certain percentage of the employee's wages for federal income tax purposes. On the other hand, an independent contractor has to pay all of these taxes on his or her own.

Kevin Provides Auditing Services to the Global Trusted Bank as an Independent