Which statement about independent contractors' benefits is true?

• A. They typically receive comprehensive benefits
• B. They usually receive some benefits from client companies
• C. They always receive a retirement plan
• D. They typically do not receive employee benefits

Answer: (D)

Independent contractors are self-employed and work under contract, not as employees of the client. Because they’re not on the client’s payroll, they don’t receive typical employee benefits such as health insurance, paid time off, retirement plans provided by an employer, or workers’ compensation. They usually have to arrange their own benefits and may negotiate higher pay to compensate for the lack of these benefits. While a client might offer some limited perks or reimbursements in rare cases, it isn’t the norm. That’s why the statement that they typically do not receive employee benefits is the best fit. The other options imply that clients routinely provide comprehensive benefits or guaranteed retirement plans, which isn’t standard for independent contractors.