Employment Question Paper

4. Employees in the account receivable department, Mary Gonzalez as well as Sherika, and other employees in the accounts payable department.

The courts distinguish between an employee, defined in s.248(1) of the Income Tax Act, hereafter, ITA, as the “position of an individual in the service of some other person”. An independent contractor, is someone with a “contract for service.” The case that considered an employee versus and independent contractor was Wiebe Door Service Ltd. v M.N.R. In this case, the applicant owned a door instalment business and had a number of contractors that worked for them. The contractors were responsible for their own taxes, workers compensation and unemployment insurance. However

Key elements of the company’s task environment include its customers, competitors, suppliers and regulatory agencies it must adhere to, i.e. the Ministry of Labour and the Provincial Human Rights Commission.

An independent contractor is defined as someone who is contracted to perform a job. The person whom is performing the job will perform by their own means and on their own time, as long as it falls within the time

The different types of agency relationships are principal-agent relationships, employer-employee relationships and employer-independent contractor relationships.

The Texas Workforce Commission uses a 20 point comparative approach to define employment status with one sentence describing an employee and one for describing an independent contractor under each category. One of the main differences between the two are a person is an employee if the

Workers have the right to 11 hours rest between working days (eg if you finish work at 8pm, they shouldn’t start work again until 7am the next day).

Self employed - if you are not employed in a contract of employment with an employer but contracted to provide services other a period of time for a fee or be a business in your own right. Therefore a person will work for themselves rather than a employer. You do not have employment rights but have to pay your own income tax and national insurance contributions.

Self-employed people will run their own business, they will be contracted to provide a service their clients. They will not be paid through PAYE and they do not have the same employment rights as employees or workers, Self-employed people will however still have protection for their health and safety on a client’s premises, they will have their rights and responsibilities set out in the terms of the contract with the client. They will not be entitled to holiday pay. They may however in some cases be classed as self-employed for tax purposes but classed as an employee or worker for employment rights. See point 2 Appendix

A ‘self-employed’ temporary worker, works for themselves and is responsible for their own NI and tax contributions, whereas with a ‘worker’ is paid directly by the employer or agency, who will be responsible to tax deductions.

Employers require an investment from their employees and in return employees need a similar investment from their company.

As there are so many different employment status types, it is important to determine the status as “employers will be exposed to the majority of employment rights only if the 'working person' can prove they are an employee rather than self-employed.” (CIPD, www.cipd.co.uk, Why is employee status so significant and what legislation covers it?, 24th Sept 2014.

These employee’s include engineers, assistants, secretaries, drivers, human resources, trainers, marketers and accounting, all employees indirectly related to the production and sale of the product.

Employees and volunteers are the people that would want to assist the Red Cross by providing a service to help victims. They would both be concerned for the success of the business as the employees would want to be getting paid well and the volunteers would want to get an experience of helping people out. The difference between the employees and volunteers is that the employees would be getting paid for working for the Red Cross on the other hand; the volunteers would also be working for the Red Cross

IRS (2011) Employee vs. Independent Contractor – Seven Tips for Business Owners. http://www.irs.gov/newsroom/article/0,,id=173423,00.html Last accessed January 3, 2012.