accepting her status as an independent contractor Rememberto onsider 12.4% FICA

Question

accepting her status as an independent contractor Rememberto onsider 12.4% FICA on her $32,000 of self-employment income before considering the NOLs. Also, Heather made a $2,000 contribution to her Individual Retirement Account. What is her AGI? Place an IC next to factors that weigh in favor of an independent contractor classification and an E next to factors that weigh in favor of employee status. To avoid influencing your decision, I use the terms payer versus recipient in reference to compensation: Recipient is paid for performance of task with few other requirements Payer controls time and location for performing work. Recipient has the authority to hire an assistant and delegate work, but bears the expense. Payer incurs the risks and benefits based on Recipient's efficiency and productivity Recipient is an architect, lawyer or other profession where having numerous clients is typical Recipient is responsible for her own continuing education and pays for her own training. 11 of 13

Explanation / Answer

Placing of IC and E next to the factors given below:

1. E

2. IC

3. E

4. IC

5. IC

6. IC

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