a computer training business needs to hire a consultant for a project to revamp the training courseware…
a computer training business needs to hire a consultant for a project to revamp the training courseware. once the courseware is revamped, the consultants services are complete. which business compensation structure will pay the consultant and lead to the smallest payroll tax liability for the business? hourly contract commission salary
Answer
Brief Explanations:
When a consultant is hired on a contract - basis (as an independent contractor), the business is not responsible for many of the payroll taxes that are associated with employees (such as Social Security, Medicare, and unemployment taxes for which employers are liable for employees). Hourly, commission, and salary arrangements typically classify the worker as an employee, leading to higher payroll tax liabilities for the business.
Answer:
B. Contract