Homework Help is Here – Start Your Trial Now!
Business
Operations Management
Use the following fact pattern: Sam Best is the sole owner of Best Buy Auto Center, Inc., a used-car business. Sam's hired assistants at Best Buy include three sales representatives, a mechanic, a receptionist, and the bookkeeper. In addition, Sam has engaged the services of a •janitorial maintenance company that sends its employees to Best Buy two evenings a week to clean the premises. Best Buy exercises considerable control over the details of the work and the day--to-day activities of the sales representatives, the methanic, the receptionist, and the bookkeeper. These workers are paid hourly wages, accumulated in paychecks issued on the first of every month. Federal and state taxes are withheld from the paychecks. Best Buy also pays unemployment taxes and the employer's share of Social Security taxes at the end of every three months for these workers. The janitorial company provides its own supplies, performs its tasks as it sees fit, and sends Best Buy an invoice each month for the services rendered during that month. The bookkeeper at Best Buy pays the bill; no taxes are withheld from the payment to the janitorial firm. Which of these workers---the sales representatives, the mechanic, the receptionist, the bookkeeper, and the janitors-are employees, and which, if any, are independent contractors? Explain.

Use the following fact pattern: Sam Best is the sole owner of Best Buy Auto Center, Inc., a used-car business. Sam's hired assistants at Best Buy include three sales representatives, a mechanic, a receptionist, and the bookkeeper. In addition, Sam has engaged the services of a •janitorial maintenance company that sends its employees to Best Buy two evenings a week to clean the premises. Best Buy exercises considerable control over the details of the work and the day--to-day activities of the sales representatives, the methanic, the receptionist, and the bookkeeper. These workers are paid hourly wages, accumulated in paychecks issued on the first of every month. Federal and state taxes are withheld from the paychecks. Best Buy also pays unemployment taxes and the employer's share of Social Security taxes at the end of every three months for these workers. The janitorial company provides its own supplies, performs its tasks as it sees fit, and sends Best Buy an invoice each month for the services rendered during that month. The bookkeeper at Best Buy pays the bill; no taxes are withheld from the payment to the janitorial firm. Which of these workers---the sales representatives, the mechanic, the receptionist, the bookkeeper, and the janitors-are employees, and which, if any, are independent contractors? Explain.

Understanding Management (MindTap Course List)
Understanding Management (MindTap Course List)
10th Edition
ISBN:9781305502215
Author:Richard L. Daft, Dorothy Marcic
Publisher:Richard L. Daft, Dorothy Marcic
Chapter15: Managing Quality And Performance
Section: Chapter Questions
Problem 6AL
See similar textbooks
icon
Related questions
Question
Use the following fact pattern: Sam Best is the sole owner of Best Buy Auto Center, Inc., a used-car business. Sam's hired assistants at Best Buy include three sales representatives, a mechanic, a receptionist, and the bookkeeper. In addition, Sam has engaged the services of a •janitorial maintenance company that sends its employees to Best Buy two evenings a week to clean the premises. Best Buy exercises considerable control over the details of the work and the day--to-day activities of the sales representatives, the methanic, the receptionist, and the bookkeeper. These workers are paid hourly wages, accumulated in paychecks issued on the first of every month. Federal and state taxes are withheld from the paychecks. Best Buy also pays unemployment taxes and the employer's share of Social Security taxes at the end of every three months for these workers. The janitorial company provides its own supplies, performs its tasks as it sees fit, and sends Best Buy an invoice each month for the services rendered during that month. The bookkeeper at Best Buy pays the bill; no taxes are withheld from the payment to the janitorial firm. Which of these workers---the sales representatives, the mechanic, the receptionist, the bookkeeper, and the janitors-are employees, and which, if any, are independent contractors? Explain.
Transcribed Image Text:Use the following fact pattern: Sam Best is the sole owner of Best Buy Auto Center, Inc., a used-car business. Sam's hired assistants at Best Buy include three sales representatives, a mechanic, a receptionist, and the bookkeeper. In addition, Sam has engaged the services of a •janitorial maintenance company that sends its employees to Best Buy two evenings a week to clean the premises. Best Buy exercises considerable control over the details of the work and the day--to-day activities of the sales representatives, the methanic, the receptionist, and the bookkeeper. These workers are paid hourly wages, accumulated in paychecks issued on the first of every month. Federal and state taxes are withheld from the paychecks. Best Buy also pays unemployment taxes and the employer's share of Social Security taxes at the end of every three months for these workers. The janitorial company provides its own supplies, performs its tasks as it sees fit, and sends Best Buy an invoice each month for the services rendered during that month. The bookkeeper at Best Buy pays the bill; no taxes are withheld from the payment to the janitorial firm. Which of these workers---the sales representatives, the mechanic, the receptionist, the bookkeeper, and the janitors-are employees, and which, if any, are independent contractors? Explain.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer