What responsibilities does the Contractor have regarding employment taxes?

The responsibility for all obligations and payments related to employment taxes falls solely on the Contractor. This signifies that the Contractor must handle payroll taxes, which include Social Security, Medicare, and any applicable federal and state income tax withholdings for their employees or subcontractors. This requirement ensures that the Contractor complies with taxation laws and regulations, thereby mitigating the risk of legal penalties or financial issues arising from tax violations.

Understanding this responsibility is critical, as it emphasizes the Contractor's role as an employer who must manage payroll accurately and timely. In contrast, responsibilities such as property taxes, rent, and utility payments do not fall under the purview of employment taxes, indicating that these are separate financial obligations that a Contractor could have but are not related to employment taxes specifically.