A broker pays a salesperson on a commission plan and withholds federal income taxes, pays social security taxes and has a comprehensive medical plan available. Which of the following would BEST describe this relationship the salesperson has with the broker?
A. Independent contractor and the broker would issue a W-2 form.
B. Independent contractor and the broker would issue a 1099 form.
C. Employee and the broker would issue a W-2 form.
D. Employee and the broker would issue a 1099 form.
Answer: C. Employee and the broker would issue a W-2 form.
Business
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