Which of the following factors, if any, is not a characteristic of independent contractor status? a.Workplace fringe benefits are not available. b.Services are performed for more than one party. c.Work-related expenses are reported on Schedule A (Form 1040). d.Receipt of a Form 1099 reporting payments received. e.None of these choices are correct.

Respuesta :

Lanuel

Answer:

c. Work-related expenses are reported on Schedule A (Form 1040).

Explanation:

An independent contractor can be defined as a self employed individual or business entity that provides services or work for another for an agreed fee.

This ultimately implies that, an independent contractor is a non-employee of the organization he provides services or work for. Some examples of independent contractor are consultants, engineers, lawyers, accountants, auditors, doctors etc.

Hence, reporting work-related expenses on Schedule A (Form 1040) is not a characteristic of independent contractor status.

However, independent contractors are required by law to report income and expenses on Schedule C (Form 1040) and report all their profits or losses on Schedule E (Form 1040) in the United States of America.

Additionally, an independent contractor status suggests that workplace fringe benefits are not available, services are performed for more than one party and must have receipt of a Form 1099 reporting payments received.