Concept explainers
Ethical Issue 11-1
Many small businesses have to squeeze down costs any way they can just to survive. One way many businesses do this is by hiring workers as ‘independent contractors’ rather than as regular employees. Unlike rules for regular employees, a business does not have to pay Social Security (FICA) taxes and
Requirements
- When a business abuses this issue, how is the independent contractor hurt?
- If a business takes an aggressive position—that is, interprets the law in a very slanted way—is there an ethical issue involved? Who is hurt?
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Horngren's Accounting (12th Edition)
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