Government laws and regulations regarding payroll are much more complex for employees than for independent contractors.

Question

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This is because employees are entitled to certain benefits and protections under labor laws, which require employers to withhold taxes, pay Social Security and Medicare contributions, provide workers' compensation and unemployment insurance, and comply with overtime and minimum wage standards, among others. Independent contractors, on the other hand, are not subject to most of these requirements and are responsible for paying their own taxes and benefits. However, the classification of workers as employees or independent contractors is a complex issue that depends on various factors, and misclassifying workers can result in significant legal and financial liabilities for employers.

Government Laws and Regulations Regarding Payroll Are Much More Complex