Independent contractor

Engaging independent contractors can be beneficial to employers in various aspects especially to small business owners. Although hiring independent contractors require higher pay, employers are more likely to save money by doing so. Because when businesses hire them, they may not be eligible for benefits such as health insurance or paid for taking time off work, they are not provided coverage by the worker’s compensation insurance, and they will be responsible for submitting their own income taxes

1.Do you feel that Karen is an independent contractor or an employee? What is your rationale for this decision? The differentiation between an independent contractor and an employee is a critical one for any employer to make. Furthermore, this choice can have significant implications for the business regarding additional fees and taxes. In this situation, Karen was initially hired as a temporary employee. Moreover, Karen has functioned as an independent contractor for 5 years. If one were to look

Professor Adina Peyton Independent Contractors   Introduction Independent contractors are hired and used for various reasons by companies. Probably one of the main reason businesses hire independent contractors is that it will save the company money in the long run. Independent contractors are not employees of the company for which they are hired. They are ultimately hired to perform a service or provide a good for a fee. The definition of a contractor, Independent entity that agrees to

QUESTION PRESENTED California law defines independent contractor as any person who provides services for a specified recompense, under the control of the principal, only for the result of his work. Acol, a guitar instructor at Marsha’s Guitar Shop, controls her own working schedule, books her own clients, and sets the prices for the services she provides. Is Acol an independent contractor? BRIEF ANSWER Yes. The principal test of a principal-independent contractor relationship is whether the hiring party

BACKGROUND: The Department of Labor has issued new guidance on differentiating between employees and independent contractors. ISSUE: Issue #1: How does the new DOL guidance change the way in which employers classify employees and independent contractors? CONCLUSION: Issue #1: The DOL has now rejected the common law control test utilized by the IRS and adopted the economic realities test, saying that most workers are considered employees under the FLSA’s broad definition. APPLICABLE LAW: The

individual as an employee or an independent contractor. An employee performs services for an employer and the employer sets the standards as to how the service will be performed. An independent contractor provides a service outside the skillset of an employer, such as, an accountant, a lawyer, or a plumber (Reilly, 2015). Independent contractors enter into a contract to perform a service for an employer. Consultants brought into an organization are also independent contractors. The current organization

An independent contractor is one who is hired by a client to do a particular job. However, the client does not control how the job is to be accomplished. On the contrary, if the client is controlling how a job is to be accomplished by taking stock of various techniques used, implementation of methods and materials consumed, then the person hired is to be considered as an employee of the client. The client usually seeks an independent contractor’s help so that the impending works can be completed

Nate Piche Employee or Independent Contractor? When choosing whether to classify a worker as an independent contractor or an employee the employer has many tax related and non-tax motivations to choose the former. The biggest motivations are the many taxes that the employer will not be responsible for withholding if they choose to classify a worker as an independent contractor. One of the largest responsibilities of an employer is the role it plays as tax collector for the government. If

Hiring a person as an independent contractor is a big decision for a business or employer to make, and several pieces of the position that need to be mapped out over hiring an employee. Orientation, or training, would not be the same for a contractor as it would a regular employee and the onboarding process will be minimized with benefit and payroll information being lessened. Many times independent contractors are short time assignments, or project based, so many all aspects of the company would

Employee or independent contractor. The most important factor in determining an independent contractor versus employee status of a worker is the amount of control the employer has over the workers in performing a particular task. McCubbin by & through McCubbin v. Walker, 256 Kan. 276, 281, 866 P.2d 790 (1994). There must be a contract between the person wanting work done and the person doing the work in order to establish either an employer-employee relationship or an independent contractor relationship