Asked by Bennie Raymond on Jul 26, 2024
Verified
________ strictly limits the definition of "independent contractors," so that employers cannot avoid legal obligations by classifying workers as self-employed when the organization receives the benefits of a permanent employee.
A) The Internal Revenue Service
B) The Consolidated Omnibus Budget Reconciliation Act (COBRA)
C) The Employee Retirement Income Security Act (ERISA)
D) Employee Benefit Research Institute
E) The Bureau of Labor Statistics
Independent Contractors
Individuals hired to perform specific tasks or services for a company under a contract agreement, but who are not considered employees of the company.
Legal Obligations
Requirements imposed by law that entities or individuals must follow, including regulations, contracts, or statutes.
Permanent Employee
An employee hired for an indefinite duration, often with full-time hours and access to benefits.
- Understand the legal framework and requirements affecting employee benefits and independent contractor classifications.
Verified Answer
CR
Cynthia RamosJul 27, 2024
Final Answer :
A
Explanation :
The Internal Revenue Service (IRS) strictly limits the definition of independent contractors, as they want to prevent employers from avoiding legal obligations by classifying workers as self-employed when the organization receives the benefits of a permanent employee. The IRS has specific criteria that must be met in order for a worker to be classified as an independent contractor, and employers who misclassify workers can face significant fines and penalties. COBRA and ERISA are laws related to employee benefits, while the Employee Benefit Research Institute is a research organization and the Bureau of Labor Statistics provides data on labor market conditions.
Learning Objectives
- Understand the legal framework and requirements affecting employee benefits and independent contractor classifications.