2. Suppose you work in the HR department of a company that wants to hire production workers as independent contractors. What advice would you give management about this idea? companycontosvears,The company can tell the contractor what criteria the finished assignment shouldmeet but not, for example, where or what hours to work. This distinction is significant,deral law, if the company treats the contractor as an employee, the11 of 35HR How ToUsing Temporary Employees and ContractorsWhen a company lands a big order, Providing the workers with sup-needs to catch up on administrativework, or isn't sure demand will con-plies or tools and reimbursingthe workers for the expensesto decide. The way to do thisis to file a Form SS-8 requesting adetermination from the IRS.The form is available at the IRSwebsite (http://www.irs.gov).associated with their work tendto be signs that the workers areemployees.• Providing the workers with ben-ents such as insurance and paidvacation time is a sign that theworkers are employees. Usu-ally, temporary workers receivethesetinue at present levels, contingentworkers look like the ideal solution.The company can hire workers froma temp agency or negotiate con-tracts for short-term projects, andQuestions1. Suppose a small companydoes not want the headacheswhen the project ends or demandfalls, the company doesn't have tofigureers, In addition, the company mayt what to do with the work-of administering benefitsprograms, so it hires itsworkers from a temp agerand keeps them on for severalWould you expect theIRS to agree that these are notemployees? Why or why not?2. Suppose you work in tdepartment of athat wants to hire productionworkers as independentcontractors. What advicewould you give managementabout this idea?outbenefits from anthat employs them, not from thecompany that pays the agencyagencybe able to save money because itdoesn't have to provide employeebenefitstract workers' pay.However, it is not up to the com-pany to decide whetherare really independent contractors.The Internal Revenue Service hasguidelines for what constitutes anemployee and an independent con-tractor. Here are some tips for howto classify workers:or withhold taxes from con-for the workers' services.• Ifa company hires workers fromtemp agency to do work forlong period of time,atitsworkersathe HRwhat these workers do,contrand uses them to perform keyroles, the government may seethe company as an employeror "joint employer" with thetemp agency. A company thatis a joint employer has to fol-low labor laws, including thoseagainst discrimination (seeChapter 3) and legal require-ments for pay (see Chapter 12).• Ifa company is not sure whetherits workers are employees or in-dependent contractors, it shouldget professional advice. Compa-nies and workers may ask the IRS• Companies can specify whatthey want a contractor to ac-complish. But if the employertells the workers how to do theSources: Internal Revenue Service, "In-dependent Contractor vs. Employee,Tax Topic 762, last updated March 20,2014, http://www.irs.gov; Internal RevenueService, "Independent Contractor (Self-Employed) or Employee?" last updatedNovember 5, 2013, http://www.irs.gov:"Hiring Temporary Employees," Entrepre-neur, February 25, 2013, http://wwwentrepreneur.com.work and controls the workers'activities, then the workers areemployees, not independentcontractors.company has certain legal obligations, described in Part 4, related to matters such asovertime pay and withholding taxes.When an organization wants to consider using independent contractors as a way toexpand its labor force temporarily, human resource professionals can help by alerting thecompany to the need to verify that the arrangement will meet the legal requirements. Agood place to start is with the advice to small businesses at the Internal Revenue Servicewebsite (www.irs.gov); search for "independent contractor" to find links to informationand guidance. In addition, the organization may need to obtain professional legal advice.Outsourcing Instead of using a temporary or contract employee to fill a singlejob, an organization might want a broader set of services. Contracting with another142

Question

2. Suppose you work in the HR department of a company that wants to hire production workers as independent contractors. What advice would you give management about this idea? companycontosvears,The company can tell the contractor what criteria the finished assignment shouldmeet but not, for example, where or what hours to work. This distinction is significant,deral law, if the company treats the contractor as an employee, the11 of 35HR How ToUsing Temporary Employees and ContractorsWhen a company lands a big order, Providing the workers with sup-needs to catch up on administrativework, or isn't sure demand will con-plies or tools and reimbursingthe workers for the expensesto decide. The way to do thisis to file a Form SS-8 requesting adetermination from the IRS.The form is available at the IRSwebsite (http://www.irs.gov).associated with their work tendto be signs that the workers areemployees.• Providing the workers with ben-ents such as insurance and paidvacation time is a sign that theworkers are employees. Usu-ally, temporary workers receivethesetinue at present levels, contingentworkers look like the ideal solution.The company can hire workers froma temp agency or negotiate con-tracts for short-term projects, andQuestions1. Suppose a small companydoes not want the headacheswhen the project ends or demandfalls, the company doesn't have tofigureers, In addition, the company mayt what to do with the work-of administering benefitsprograms, so it hires itsworkers from a temp agerand keeps them on for severalWould you expect theIRS to agree that these are notemployees? Why or why not?2. Suppose you work in tdepartment of athat wants to hire productionworkers as independentcontractors. What advicewould you give managementabout this idea?outbenefits from anthat employs them, not from thecompany that pays the agencyagencybe able to save money because itdoesn't have to provide employeebenefitstract workers' pay.However, it is not up to the com-pany to decide whetherare really independent contractors.The Internal Revenue Service hasguidelines for what constitutes anemployee and an independent con-tractor. Here are some tips for howto classify workers:or withhold taxes from con-for the workers' services.• Ifa company hires workers fromtemp agency to do work forlong period of time,atitsworkersathe HRwhat these workers do,contrand uses them to perform keyroles, the government may seethe company as an employeror &#34;joint employer&#34; with thetemp agency. A company thatis a joint employer has to fol-low labor laws, including thoseagainst discrimination (seeChapter 3) and legal require-ments for pay (see Chapter 12).• Ifa company is not sure whetherits workers are employees or in-dependent contractors, it shouldget professional advice. Compa-nies and workers may ask the IRS• Companies can specify whatthey want a contractor to ac-complish. But if the employertells the workers how to do theSources: Internal Revenue Service, &#34;In-dependent Contractor vs. Employee,Tax Topic 762, last updated March 20,2014, http://www.irs.gov; Internal RevenueService, &#34;Independent Contractor (Self-Employed) or Employee?&#34; last updatedNovember 5, 2013, http://www.irs.gov:&#34;Hiring Temporary Employees,&#34; Entrepre-neur, February 25, 2013, http://wwwentrepreneur.com.work and controls the workers'activities, then the workers areemployees, not independentcontractors.company has certain legal obligations, described in Part 4, related to matters such asovertime pay and withholding taxes.When an organization wants to consider using independent contractors as a way toexpand its labor force temporarily, human resource professionals can help by alerting thecompany to the need to verify that the arrangement will meet the legal requirements. Agood place to start is with the advice to small businesses at the Internal Revenue Servicewebsite (www.irs.gov); search for &#34;independent contractor&#34; to find links to informationand guidance. In addition, the organization may need to obtain professional legal advice.Outsourcing Instead of using a temporary or contract employee to fill a singlejob, an organization might want a broader set of services. Contracting with another142

Accepted Answer

The management of the production firm decides to adjust the capacity by hiring part-time or new…