Which statement about employees and independent contractors is correct?

The statement that independent contractors have more control than employees is correct. In a typical employer-employee relationship, the employer has significant control over the employee's work, including how, when, and where the work is performed. Employees usually follow set schedules and guidelines established by the employer.

In contrast, independent contractors operate with a greater degree of autonomy. They determine how to accomplish their tasks, can often set their own hours, and have the flexibility to work for multiple clients or companies. This level of control reflects the nature of the independent contractor’s business relationship, where they are considered self-employed and responsible for their own business operations.

The other statements do not accurately describe the distinctions between employees and independent contractors. For example, employees can be compensated through various methods, not just salaries; independent contractors may not always be fully liable for their actions due to the potential for vicarious liability, and while employees may use tools provided by their employers, they can also use their own tools depending on the job and the employer’s policies.