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Business Level 3 Unit 4 P1

Decent Essays

Based on IRS regulations, there is a difference in the type of employment for employees and independent contractors. The employers ‘responsibilities are different when it comes to these two types of employment. As an example, I would use a scenario with a computer specialist for a family owned business. The business is a produce company with two locations in Florida. The computer specialist would be the person in charge of their POS system. Since the employer does not need the specialist on site during regular hours at all times, the employer decided to contract this position. The company has two full-time IT employees to maintain network and mechanical computer issues during business hours. The IT specialist employed as an independent contractor works on his schedule and …show more content…

The contractor does not have set hours for his services as long as the maintenance of the company’s POS system is satisfied. His work does not necessary have to be done on premises and he can handle maintaining the company’s system remotely. The contractor does not have to follow any schedules or work patterns for the company. He is basically working on all the updates and maintenance on as needed basis on his own schedule. He is being paid a set contract fee for the system maintenance and then he is charging the company for every work call he has to be on in order to fix any issues with the system. If he has to come to one of the company’s locations when the problem cannot be resolved over the phone, he is charging a company fee for reimbursement of his travel expenses. This contractor can work for more companies at the same time and make himself available to general public with his services. He can also cancel the contract with the company at any time, and the company can terminate his service and any time (College). All these factors are a proof that this kind of employment is an on the basis of an independent

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