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Mega Big Box Stores Has Been Hiring Programmers at Its

Question 25

Multiple Choice

Mega Big Box Stores has been hiring programmers at its headquarters to maintain its online retail operation.As the size of the online business grew,Mega changed the status of the programmers from employees to independent contractors,although their job responsibility increased.For the past 3 years,all new programmers brought on board have signed documents classifying them as independent contractors.Some of the programmers brought a court case regarding their status and got a verdict that they were misclassified.Which of the following is an implication of this scenario?


A) The Internal Revenue Service (IRS) can hold the employer liable for its share of Social Security and federal unemployment compensation that should have been withheld.
B) The Internal Revenue Service (IRS) will require the employer to exclude its programmers from its dental, medical, pension, and profit-sharing plans.
C) The Internal Revenue Service (IRS) will hold the employer liable for a minimum of 10 percent of the wages received by the programmers.
D) The Internal Revenue Service (IRS) will require the programmers to pay all the outstanding federal taxes, state taxes, and Medicare on their own if their employer fails to pay.

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