Jeffrey works as an independent contractor for an accounting firm jointly owned and managed by the Matthews brothers. Which of the following implications can be drawn from the scenario? Jeffrey will be solely responsible for making payments for his Social Security (FICA). federal income tax, state taxes, and Medicare. The accounting firm will be completely responsible for paying Jeffrey's federal unemployment compensation (FUTA), Medicare, and state taxes. Jeffrey will be protected from unfair labor practices just like an employee under the National Labor Relations Act of 1935 (NLRA) The accounting firm will have to include Jefferey in its dental, medical, pension, and profit - sharing plans.

Question

Business

Emery Stewart

28 May, 03:30

Jeffrey works as an independent contractor for an accounting firm jointly owned and managed by the Matthews brothers. Which of the following implications can be drawn from the scenario? Jeffrey will be solely responsible for making payments for his Social Security (FICA). federal income tax, state taxes, and Medicare. The accounting firm will be completely responsible for paying Jeffrey's federal unemployment compensation (FUTA), Medicare, and state taxes. Jeffrey will be protected from unfair labor practices just like an employee under the National Labor Relations Act of 1935 (NLRA) The accounting firm will have to include Jefferey in its dental, medical, pension, and profit - sharing plans.

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Answers (1)

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Dillan Wong · Answer 1

The correct answer is letter "A": Jeffrey will be solely responsible for making payments for his Social Security (FICA).

Explanation:

Independent contractors act like third party services working for an entity to render services for specific jobs. Independent contractors are not employees of the company who hires them for the job which implies the independent contractors are fully responsible for the payment of their own Social Security and Medicare taxes.