Final answer:
The Employer's Supplemental Tax Guide helps a broker distinguish between an employee and an independent contractor. An employee is hired by an employer to perform specific tasks or services under their control, while an independent contractor is a self-employed individual who provides services to a client or customer.
Step-by-step explanation:
The Employer's Supplemental Tax Guide helps a broker distinguish between an employee and a/an independent contractor. An employee is someone who is hired by an employer to perform specific tasks or services under their control, whereas an independent contractor is a self-employed individual who provides services to a client or customer.
One key difference between an employee and an independent contractor is the way taxes are handled. As an employee, the employer is responsible for deducting and remitting taxes on your behalf, whereas as an independent contractor, you are responsible for paying your own taxes.
For employees, the employer deducts taxes such as Social Security and Medicare from their paycheck, while for independent contractors, they must pay both the employee and employer portions of these taxes on their own.