In: Accounting
A ___________ employee is eligible for company benefits whereas a ________ employee is not.
Multiple Choice
independent contractor; temporary
temporary; part-time
leased; temporary
temporary; leased
Answer: 3rd option
Leased employee is eligible, but temporary employee is not.
Leasing company provides employee benefits to leased employees. In the process of doing so the company withholds Social Security tax, Medicare tax, and other contributions to appropriate authorities.
Temporary employee and part-time employee are not considered as regular staffs; therefore, they are not eligible for employee benefits.
Independent contractor is not an employee of the company; therefore, there is no question of employee benefits.