Considering employee status, what is ABC Real Estate Company doing for its workers?

The correct choice indicates that ABC Real Estate Company is recognizing its workers as employees by withholding Social Security contributions and paying unemployment insurance. This practice is significant in the context of employee status because it demonstrates the company’s responsibility to comply with federal and state employment laws that govern employee benefits and protections.

When a company withholds Social Security taxes from an employee's paycheck, it signifies that the worker is classified as an employee rather than an independent contractor. This withholding is part of the overall payroll tax system, ensuring that employees contribute to Medicare and Social Security, which provides them with future benefits. Furthermore, by paying unemployment insurance, the company is taking on additional responsibilities associated with employee benefits, which are not typically required for independent contractors.

In contrast, paying solely on commission usually aligns with independent contractor status, as does contracting for temporary work. Providing only health benefits does not alone define employee status without the other benefits and employer responsibilities that come with it. Therefore, the choice reflects a clear understanding of the relationship and obligations between an employer and its employees under applicable laws.