Final answer:
Agent-drivers, commission-drivers, and full-time life insurance salespersons can be classified as Statutory Nonemployees, which means they are treated like independent contractors for tax purposes, following specific statutory rules. This classification affects tax reporting and payment. Therefore, correct option is B.
Step-by-step explanation:
The classification of agent-drivers, commission-drivers, and full-time life insurance salespersons pertains to the tax status and employer-employee relationship definitions in U.S. tax law.
These individuals are considered Statutory Nonemployees if they meet certain conditions set by the IRS. The designation 'Statutory Nonemployee' generally applies to workers who are treated as independent contractors for tax purposes, yet there are specific statutory rules for their classification.
This classification allows these workers to be exempt from tax withholding which would typically be required if they were classified as employees.
It is essential for businesses and workers alike to understand these classifications, as they impact how taxes are reported and paid, as well as potential liability and benefits issues.