Test what you learned: Hire Employee vs Freelancer key terms

4 quick questions on the terms from the Hire Employee vs Freelancer calculator. Answer one at a time, then see your full results at the end.

Question 1 of 4

The employer share of FICA is...

A tax credit employers receive for hiring new workers The employer's matching contribution to an employee's Social Security and Medicare taxes The portion of payroll tax that employees pay entirely on their own A one-time registration fee for setting up payroll

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The employer share of FICA is the employer's matching contribution to Social Security and Medicare — a real cost on top of an employee's salary.

Question 2 of 4

FUTA/SUTA are...

Taxes employees pay to fund their own future unemployment claims A fee charged only to businesses with fewer than 10 employees Federal and state unemployment taxes employers pay to fund unemployment benefits Taxes that fund workplace safety inspections

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FUTA and SUTA are federal and state unemployment taxes that employers — not employees — pay, funding the unemployment benefits system.

Question 3 of 4

"Workers' compensation" is...

A bonus paid to employees who work overtime Severance pay required when an employee is laid off Insurance that covers a business's property, not its workers Required insurance that covers medical costs if an employee is injured on the job

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Workers' compensation is required insurance covering medical costs (and often lost wages) if an employee is injured on the job.

Question 4 of 4

The 1099 vs W-2 distinction is...

1099 workers are part-time; W-2 workers are always full-time Whether a worker is an independent contractor (1099) or a formal employee (W-2) — a legal distinction, not a choice Simply which tax form has a nicer design 1099 is used for remote workers; W-2 is for on-site workers only

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This is a legal classification, not a preference — misclassifying an employee as a 1099 contractor can carry real penalties.

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This quiz is a learning aid, not a certification or formal assessment. GetRealTerms provides general estimates for informational purposes only — nothing here is tax or financial advice.