Chapter 4-Being an independent Contractor.

Question 1

Employee

Answer 1

Someone who works under the direction and control of another.

Question 2

Independent Contractor

Answer 2

Individual who is self-employed.

Question 3

Statutory Employee

Answer 3

Independent contractors specifically classified as employees by statute for Social Security and Medicare taxes.

Question 4

Statutory Non-employee.

Answer 4

Direct sellers and licensed real estate agents; treated as independent contractors for all tax purposes if certain conditions are met.