Question

Roger is a freelance accountant hired by Rudy’s Hot Dogs whenever auditing work is needed in the back office. Roger is called to the office on a need basis and is paid $200 per day for his services. Which of the following is likely true of this scenario? (pg.8)
a.Rudy’s Hot Dog will need to withhold a certain percentage of Roger’s wages for federal income tax purposes
b, Roger can not be held liable for any torts committed by him within the scope of the working relationship
c.Rudy’s Hot dogs will be liable to Roger if he makes any discrimination or wrongful discharge claims

Answer 1

Answer:

C) Rudy's Hot Dogs will be liable to Roger if he makes any discrimination or wrongful discharge claims.

Explanation:

Option A is wrong: Roger is not an employee of Rudy's Hot Dogs, he is an independent contractor, therefore Rudy's Hot Dogs does not need to withhold any part of his wage for federal income tax purposes. As an independent contractor, Roger is responsible for paying his own taxes.

Option B is wrong: Roger can be hold liable for any torts committed by him within the scope of the working relationship with Rudy's Hot Dogs.