In: Operations Management
You have just been hired as a manager of ABC Company. Your first week on the job you are asked by upper management to review payroll. You notice the company is not paying any taxes for its employee. You ask the payroll director why there are no taxes paid and he states that all of the workers are considered independent contractors. What would you do in this case?
When the copmpany is a having independent contractors it depends on the contract made with the employees on what to pay. But even they have some rules to be followed and if we find any rule violated we can point it out. Otherwise we cannot do much in this case because if they are permanent employees we can ask the company for their rights but independent contractors have to pay their taxes and the company is not answerable for anything other than what they signed for. In this case we can suggest having a ratio of permanent employees in the company so that we have some support all the time. We need to pay them as per law and the rest can be on contract.