Requirements: Review the information and questions below. Provide a detailed 4-5 sentence explanation on how you would solve the problem or issue, based not only on the readings in the chapter, but your own personal experience and/or any additional outside research you perform. If quoting a source directly, make sure to cite that source, but do not rely solely on quoted materials.

Issue: Under the Federal Insurance Contributions Act (FICA) every person is an employer if the person employs one or more individuals for the performance of services in the United States. The Internal Revenue Service (IRS) test for an employer/employee relationship is if a business tells, or has a right to tell a worker how, when, and where to work then the worker is an employee, and if they meet these tests, must withhold and pay FICA taxes on those employees wages. During your life, you may have noticed many employees performing work for a company without paying FICA taxes (i.e. being paid under the table).

Questions to be Answered: 1) What are the concerns from a business perspective on this legally questionable practice?

2) What are the concerns from a social perspective on this legally questionable practice?