When considering tax planning ideas related to employment status, which of the following factors is an important implication of misclassifying workers as independent contractors?
a.There are penalties for employers who wrongfully categorize workers as independent contractors.
b.There are penalties for reimbursing business expenses of an independent contractor.
c.There are penalties for not furnishing tools or equipment or a place to work.
d.There are penalties for paying independent contractors a flat fee for the job.
e.There are penalties for performing services for more than one party.
a.There are penalties for employers who wrongfully categorize workers as independent contractors.
Employers who misclassify employees and independent contractors are subject to fines and penalties under the Affordable Care Act.