BUS_340_Topic_6_Assignment_____Final_Draft.docx BUS-340 Employee vs. Independent Contractor: First Draft BUS-340 This is a case about whether a worker is an employee or an independent contractor within the top-rated
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BUS_340_Topic_6_Assignment_____Final_Draft.docx BUS-340 Employee vs. Independent Contractor: First Draft BUS-340 This is a case about whether a worker is an employee or an independent contractor within the top-rated accounting firm, Madrid and Berne. This firm hired Joan Newman Business Services to perform bookkeeping services for the firms clients who request and need such services. When entering an independent contractor agreement, it is important to thoroughly define three main controlling factors that distinguish the independent contractor from a regular employee. This is crucial for the IRS because they established the three main factors to determine worker classification for federal taxes to be withdrawn from wages paid to the worker if they are an employee (IRS, 2020). If they are an I.C. they would be subject to self-employment tax and misclassifying a worker may lead to serious federal consequences. The three main factors the IRS uses to classify workers are a companys behavioral control, financial control and relationship they have with the hiring party. What constitutes behavioral control are the types of instruction given and the degree of instructions provided. Employees will be provided with a time and place to do the work, as well as detailed instruction on how to do the work. A worker with few and unspecified instruction is under much less control than an employee and would generally be considered a contractor. The next factor of worker classification classifies the worker with the extent of financial c. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . .. .. . . . . . . . . . . . . . . . . . .. . . . .
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