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

Question: 1 / 400

A worker who does not have taxes withheld typically falls under which classification?

Employee

Independent Contractor

A worker who does not have taxes withheld typically falls under the classification of an independent contractor. Independent contractors operate as self-employed individuals, meaning they are responsible for their own taxes and are not subject to tax withholding in the same manner as employees. This classification reflects the nature of their working relationship, where they provide services to clients or businesses under specific contracts without the protections and benefits typically granted to employees.

Employees, on the other hand, have taxes withheld from their paychecks by their employers, as employers are responsible for withholding income taxes, Social Security, and Medicare. The other classifications, such as part-time worker and commissioned salesperson, can still involve tax withholding if those individuals are classified as employees, which further emphasizes why independent contractors are recognized for having no taxes withheld.

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Part-time Worker

Commissioned Salesperson

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