Distinguishing between employees and independent contractors is important because: Group of answer choices income tax must be withheld for independent contractors, but not employees employers have fewer legal obligations to employees employers can defend their noncompliance with employment laws by proving that persons performing work are independent contractors it is not important to distinguish between employees and independent contractors

Distinguishing between employees and independent contractors is important because:

employers can defend their noncompliance with employment laws by proving that persons performing work are independent contractors.

Explanation:

Legally, an employer-employee relationship is governed by a contract of service.  This is an agreement between an employer and an employee. The employee does not perform specific tasks or projects, but any tasks assigned to her by the employer from time to time, and she must present at all times to perform the assignment.  On the other hand, the legal relationship between an entity and a self-employed person or an independent contractor is governed by a contract for service.  In a contract for service, the independent contractor engages with the entity to carry out an assigned project  for a fee.

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