Salesperson Steve receives an hourly wage of $14 an hour from broker Clayton. Clayton tells the IRS Steve is an independent contractor. The IRS then says Steve has failed the __________ and does not qualify as an independent contractor.

Respuesta :

Myth8

Answer: Salary test

Explanation:

According to FLCA, the salary basis test is a series of stipulations that may exempt an employee from being eligible for overtime pay.

Any worker that is paid a fixed amount of money by their employer is considered a salaried employee.

And as such is exempted to be referred to as an independent contractor.

Misclassifying an employee can lead to fines and penalties from the government.