Fernando is currently an employee earning $$50,000,$ including all compensation and employee benefits. Each year, he accrues about

$$10,000$ of unreimbursed employee expenses. As an independent contractor, he would experience

tax savings from paying less Social Security and Medicare taxes but additional costs from deducting business expenses.

additional costs from deducting business expenses and paying more Social Security and Medicare taxes.

tax savings from deducting business expenses as well as tax savings from paying less Social Security and Medicare taxes.

tax savings from deducting business expenses but additional costs from paying more Social Security and Medicare taxes.