First, find the gradient of line A. We know that the line passes through the points (1, 3) and (4, 9). To calculate the gradient, find the difference in the y coordinates and the difference in the x coordinates, and then divide the y value by the x value. 9 - 3/4 - 1 = 6/3 = 2. The gradient of line A is 2.
One government expert calculated that a construction worker earning $31,200 a year before taxes would be left with an annual net compensation of $10,660.80 if paid as an independent contractor, compared to $21,885.20 if paid properly as an employee.
The question of whether someone who works for you is an employee or an independent contractor has important tax consequences. If you have employees, you have liability to pay and withhold Federal income tax, social security and Medicare taxes, and Federal unemployment tax, report wages and issue statements to employees. For independent contractors, generally no withholding is required. For most workers, whether in the private or public sector, the same common-law tests are applied to determine whether someone is an employee or an independent contractor.