Hiring an independent contractor


Which of the following is not a reason for a business to prefer to hire an independent contractor rather than an employee?

1. The independent contractor cannot participate in company fringe benefits.

2. The company does not have to pay FICA taxes on the amounts paid to the independent contractor.

3. The company does not have to supply a workplace or tools to the independent contractor.

4. The company only has to pay FUTA on the independent contractor's wages.

Request for Solution File

Ask an Expert for Answer!!
Accounting Basics: Hiring an independent contractor
Reference No:- TGS067327

Expected delivery within 24 Hours