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(TCO 4) Which of the following statements is NOT true?
In theory, the IRS should collect the same amount of tax on a worker’s compensation, whether the worker is an employee or an independent contractor.
The IRS believes that contractors pay more taxes than employees.
An employer has a financial incentive to treat workers as independent contractors rather than employees.
If the IRS reclassifies a worker from independent contractor to employee, the employer can become liable for the employee’s share of the unpaid interest and penalties. (General Feedback:
Chapter 15, page 444)
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Question 2. Question : (TCO 4) Tom’s annual compensation is $145,000. What is the maximum amount that Tom’s employer may contribute to a defined contribution plan on his behalf in 2013?