Why is it important to distinguish whether an individual is an employee or an independent contractor $($self$-$employed$)?$

of the FICA tax, which continues to apply without limit at a $1\mathrm{.}45\%$ rate for both employees and employers and at a $2\mathrm{.}9\%$ rate for self$-$employed individuals.

B$.$ Employers pay certain payroll taxes on behalf of their employees, whereas, self$-$employed individuals have to pay both the employer and employee portion of payroll

taxes. Therefore, individuals may prefer to be classified as employees because the employee portion of the social security tax rate in $2023$ of $7\mathrm{.}65\%$ is less than

the self$-$employment tax rate of $15\mathrm{.}3\%.$

employees or not deductible at all. A self$-$employed individual who incurs a business$-$related expenditure may deduct, under Section $162,$ the expense for determining AGI

on Schedule C$,$ Form $1040.$

D$.$ All of the above.