Businesses must withhold payroll taxes from payments made to independent contractors and periodically remit such taxes to the state and federal governments.

Question

Quizplus · Accepted Answer

Businesses do not withhold payroll taxes from payments made to independent contractors, as they are not considered employees. Instead, independent contractors are responsible for paying their own taxes, including self-employment tax.

Businesses Must Withhold Payroll Taxes from Payments Made to Independent