Which of the following statements regarding independent contractors and employees is true (ignore temporary provisions)?
A)Independent contractors pay Social Security and Medicare tax of 15.3%.
B)Employees must pay unemployment taxes.
C)Independent contractors and employees pay the same Social Security and Medicare tax rates.
D)Independent contractors deduct their business expenses "from AGI."

Question

Quizplus · Accepted Answer

Independent contractors are responsible for paying the full 15.3% Social Security and Medicare tax, which includes both the employer and employee portions.

Which of the Following Statements Regarding Independent Contractors and Employees