Employers can avoid certain tax liabilities by hiring independent contractors instead of employees.

Question

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Independent contractors are not considered employees, so employers are not required to withhold or pay employment taxes, such as Social Security and Medicare taxes, unemployment taxes, or workers' compensation insurance. Therefore, hiring independent contractors can help employers avoid certain tax liabilities. However, misclassifying employees as independent contractors can lead to penalties and back taxes, so it's important for employers to properly classify their workers.

Employers Can Avoid Certain Tax Liabilities by Hiring Independent Contractors