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?\n\nhourly\n\nsalary\n\ncommission\n\ncontract
Answer
Brief Explanations:
When a consultant is hired under a contract (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 the employer has a share). Hourly, salary, and commission - based employees typically result in higher payroll tax liabilities for the business as the employer has to contribute to various payroll - related taxes on their behalf.
Answer:
Contract