Independent Contractor or Employee
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We are presented with a scenario in which the key question is this: Is Mary properly classified as an independent contractor or an employee. The IRS suggests that it is important to look at the amount of control the employer has over the individual. As a general rule, the employer of an independent contractor has the right to control or direct only the result of the work done by an independent contractor, and not the means and methods of accomplishing the result. In the case presented, Mary is required to use company materials and equipment while adhering to company work schedules. The problem is that if a company misclassifies an employee as an independent contractor, it will be liable for employment taxes for that worker. The courts consider many facts in deciding whether a worker is an independent contractor or an employee. According to Gregory Matthews in Payroll Answer Book (2000), these relevant facts fall into three main categories: behavioral control; financial control; and relationship of the parties. In each case, it is very important to consider all the facts -- no single fact provides the answer. A court will examine the employer's behavioral control to determine whether there is a right to direct or control how the worker does the work. A worker is an employee when the business has the right to direct and control the worker. The business does not have to actually direct or control the way the work is done -- as long as the employer has the right to dir
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makes services available to the relevant market
How the business pays the worker.
The permanency of the relationship. If you engage a worker with the expectation that the relationship will continue indefinitely, rather than for a specific project or period, this is generally considered evidence that your intent was to create an employer-employee relationship.
The extent to which services performed by the worker are a key aspect of the regular business of the company (Tulenko, Online).
Over time, the courts have come to appreciate that as the economy becomes more service oriented that the nature of relationships between workers and employers is evolving. As the way in which work can be performed and where work can be done changes thanks to advances in technology, the traditional definitions of work relationships evolve as do the courts interpretations of the differences between employees and independent contractors.
The doctrine of employment at will states that an employee may be terminated at any time by an employer with or without cause, with or without notice, and with or without severance absent an employment contract or agreement creating additional obligations on the part of the employer. The question of whether Mary
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Some common words found in the essay are:
Tulenko Online, Answer Book, Journal Online, Development Coalition, , Jr Esq, Retrieved Dec, References Goldstein, Inc Tulenko, independent contractor, employment contract, violation public, public policy, Jeffrey Goldstein, violation public policy, direct control, dec 18 2004, breach implied, covenant faith, goldstein 2004, implied covenant, retrieved dec 18, implied covenant faith, bad faith, payroll answer book,
Approximate Word count = 1283
Approximate Pages = 5 (250 words per page)
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