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 at her employment status, they would see that Karen has additional clients outside of the local utility as well as the fact that she has not received benefits or proper tax documentation for this period time. For these reasons, Karen should …show more content…
Furthermore, if no employer-employee relationship exists (regardless of what the relationship is called), you are an independent contractor and Karen’s earnings are generally subject to Medicare and Social Security Taxes for Self-Employed (IRS, 2011). In any event, this is a very interesting question for all involved. Despite the fact that Karen was hired as a consultant acting independently of the utility, she has been working within a relationship with the employer for a long period of time. 4.What are some potential legal implications in the case? What should the utility do to rectify any wrongs in this situation? Challenges for the employer and the situation include the issues related to government taxes such as Medicare and Social Security. In addition, the employer is bound to pay reasonable benefits to all of its employees equally. If the utility does not do this, and it is determined that Karen is an employee of the utility, and Karen is a legitimate case against the utility to recover the lost benefits. To rectify this situation, the utility should clarify exactly what Karen’s individual situation is, and hopefully with the help of a tax advisor. The advisor may suggest that Karen's work responsibilities be clearly delineated and that she be afforded the requisite benefits. Lastly, all necessary taxes, including payroll amounts for charges such as Medicare and Social Security need to be paid in full. 5.Draft a sample policy for
In her book, Labor and Legality: An Ethnography of a Mexican Immigrant Network, Ruth Gomberg-Muñoz describes the lives of ten busboys, she referrs to as the Lions, living and working in the Chicago area. Gomberg-Muñoz provides an insight into the lives of these undocumented Mexican workers. They share their stories of crossing the border, the affects of their absence on family back in Mexico, and the daily struggles of living in a country without the benefits of citizenship. The Lions, as well as other undocumented Mexicans, have to face Americans stereotypes every day. Probably the biggest stereotype the Lions contend with is the belief that all Mexicans are hard workers.
John has income derived from a business and as such the gross income will be taxable. (Code §1.61-3(a)) This total amount of taxable income will pass through to his personal taxes since he has an LLC, meaning he will be subject to self
1. You recently retired from government contracting work and established a consulting company (fully consistent with government ethics laws and rules, of course) with the primary focus of advising potential government contractors and subcontractors. Mr. Johnny Jones, of The Johnny Jones Flooring and Construction Company has approached you with a question. Jones and his company are potential subcontractors (they, obviously, specialize in flooring) on a federal construction contract worth a little over two million dollars ($ 2,000,000.00) recently awarded to the Jimmy Smith Construction Company (Jimmy Smith, the prime contractor). Neither Johnny nor his company have ever been part of a government contract
work does not necessary have to be done on premises and he can handle maintaining the company’s
While interviewing Mrs. Beamon, owner and operator of the Wilson Doughnut Shop, I asked her a series of questions that I and others could benefit from. Mrs. Beamon took over the Wilson Doughnut Shop in 2008 and there were many things that needed to be changed. First I asked Mrs. Beamon why and or what made her want to take over the Wilson Doughnut Shop. Mrs. Beamon’s answer was simple, she wanted to create jobs for people. She then went on to tell me that in the beginning family members were supposed to work there but that isn’t exactly the case now. I then went on to ask about who owned the Doughnut Shop before she did and the answer to that question was Mr. Tony Stone. While there was someone running the Wilson Doughnut Shop before Mrs. Beamon,
Issue 3: Some terms of the contract were unfair to customers. Especially, customers cannot pursue disputes with the company through the court or lawsuits.
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
Evaluate the situation in which Mason and Shepherd find themselves with respect to their existing employers. What legal and ethical issues do you see and how would you advise them to proceed?
This case was prepared by Professor Stephen E. Barndt of Pacific Lutheran University. This case was edited for 5MBP 9th Edition. Copyright C 1998 and 2000 by Stephen E. Barndt. This case was published in the Business Case [ourn Summer 1998. Vol. 1. No. t. pp. 53-{}9. Reprinted hy permission,
Student Role: Describe the student 's role with the employer and how that role is directly related to enhancing the student 's knowledge obtained through his or her qualifying STEM degree.
This infographic outlines the key differences between independent contractors & employees as well as uncovers some of the common reasons for misclassification. The misclassification of employees as independent contractors presents one of the most serious problems facing affected workers, employers and the entire economy. It is critical that business owners correctly determine whether the individuals providing services are employees or independent contractors. By some estimates, contingent or temporary workers could reach 30%–50% of the U.S. workforce. A federal study contends that an estimated 3.4 million employees are classified as independent contractors when they should be reported as employees. This infographic is an attempt to eliminate
Summing up the common law test Anne has a contract for service, which makes her an independent contractor. Anne Parish had signed a contract for employment with Ace Insurance Company which
The provision and use of personal protective equipment could include using gloves, glasses, earmuffs, aprons, safety footwear, dust masks.
Employment or labor laws have been developed to facilitate smooth relationship between employers and employees. Employment laws provide rules and regulations that should govern both the employer and the employees in their places of work. Employment laws discuss issues related to child labor, wages and salaries, retirement, working conditions, compensations, incentives and employment benefits among others. The major objective is to ensure the employer does not exploit the employee and on the other hand, the employee honors the terms and conditions of the job as presented by the employer.
Employee benefits are a tool used by businesses to attract potential applicants, improve employee satisfaction, reduce turnover and maintain competition. Benefits that most employers offer include, but are not limited to, medical and dental coverage, time away from work, retirement, and additional assistance during life changing events. The majority of employers in the United States offer benefits to their employees and include an annual enrollment yearly to select benefits and make any needed changes.