Question 50 of 75.

All of the following statements are true EXCEPT?

A statutory employee is defined as an employee by law under a specific statute. Generally, most individuals are determined to be employees under common law. However, certain groups of workers have been specifically covered by the law for Unemployment Insurance (UI), Employment Tax Training (ETT), and State Disability Insurance (SDI) purposes.

Businesses and government entities are required to report independent contractor information if they hire an independent contractor and they are required to file a Form 1099-NEC, Nonemployee Compensation.

Employers found to have been involved in "willful" misclassification of employees face a civil penalty of between $5,000 and $15,000 each time they are found to be in violation.

Under federal law, forgiven Paycheck Protection Program loans that businesses received from the federal government during the pandemic must be counted as taxable income.