Statement: If a worker is classified as an independent contractor, no taxes are withheld from the pay, so the worker should save money and prepare to pay income taxes and file a tax return on April 15.

Prepare for the Business of Chiropractic Test. Study with quizzes and detailed explanations. Master essential topics and get certified in chiropractic practice management!

Multiple Choice

Statement: If a worker is classified as an independent contractor, no taxes are withheld from the pay, so the worker should save money and prepare to pay income taxes and file a tax return on April 15.

Independent contractors are responsible for paying their own taxes because there’s no employer withholding. You owe income tax on your earnings and self-employment tax to cover Social Security and Medicare. Since taxes aren’t taken out of your pay, it’s smart to set aside a portion of what you earn and make quarterly estimated tax payments if you expect to owe a substantial amount. Your tax return will report business income and expenses, compute the self-employment tax on net earnings, and determine the total tax due. The federal due date for individuals is April 15, and you should pay any tax owed by that date (or file for an extension if needed). In this typical scenario, saving ahead and planning to pay taxes and file on time is the prudent approach, so the statement is true.

Statement: If a worker is classified as an independent contractor, no taxes are withheld from the pay, so the worker should save money and prepare to pay income taxes and file a tax return on April 15.

Prepare for the Business of Chiropractic Test. Study with quizzes and detailed explanations. Master essential topics and get certified in chiropractic practice management!

Statement: If a worker is classified as an independent contractor, no taxes are withheld from the pay, so the worker should save money and prepare to pay income taxes and file a tax return on April 15.

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