Fundamental Payroll Certification (FPC) 2025 – 400 Free Practice Questions to Pass the Exam

Question: 1 / 400

Which classification describes a worker that requires the employer to pay certain employer taxes?

Employee

An employee is classified as a worker for whom the employer is responsible for paying certain employer taxes. This includes taxes such as Social Security, Medicare, unemployment insurance, and workers' compensation. The employer is required by law to withhold certain amounts from an employee's wages for federal taxes and often state taxes, as well.

In contrast, independent contractors are responsible for paying their own taxes and do not typically have taxes withheld from their paychecks. Similarly, consultants, who often work on a contract basis, manage their own tax obligations. Volunteers, although they work for an organization without expectation of payment, do not incur employer tax responsibilities.

This classification highlights the responsibilities that arise from the employer-employee relationship, distinguishing it from other forms of worker arrangements.

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Independent Contractor

Consultant

Volunteer

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