Instead of being classified as an employee, Matthew McGinnis was misclassified as an independent contractor. How...

Instead of being classified as an employee, Matthew McGinnis was misclassified as an independent contractor. How will his employer's FICA taxes be affected? What penalty will the employer face for this misclassificiation? What should a company look at in determining how to classify a worker as an employee versus an independent contractor?

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ekkarill92 answered 1 year ago

Payroll Accounting What is the difference between an independent contractor and an employee? How does this...

Payroll Accounting What is the difference between an independent contractor and an employee? How does this status affect their taxes and reporting requirements on both employee and employer sides?

The question as to whether a Worker was an employee or an independent contractor has been...

The question as to whether a Worker was an employee or an independent contractor has been litigated before Canadian Courts on many occasions. Some of the leading cases in this area are Wiebe Door Services Ltd. v. M.N.R., 87 DTC 5025 (FCA), 671122 Ontario Ltd. v. Sagaz Industries Canada Inc., 2001 SCC 59 (CanLII), [2001] S.C.J. No. 61 and Royal Winnipeg Ballet v. Canada, [2006] FCA 87. The common law test is whether “the Worker is engaged in performing services...

What is a fiduciary relationship? What are the differences between an employee and an independent contractor?...

What is a fiduciary relationship? What are the differences between an employee and an independent contractor? What is an agency relationship? List and define the ways an agency can be formed. What are the agent’s duties to the principal? What are the principal’s duties to the agent? List and define the types of authority. What are the three categories of principals and how do those categories effect liability? When is an principal liable for the torts of the agent? What...

In determining whether a person is an employee or an independent contractor the Internal Revenue Service...

In determining whether a person is an employee or an independent contractor the Internal Revenue Service will chiefly consider a.the degree of control the employer exercises over the work to be done. b.how the person is paid (periodically or by project). c.what skill does the work require. d.what is the length of employment.

Statutory employee versus independent contractor versus employee A University considers its adjunct professors to be employees,...

Statutory employee versus independent contractor versus employee A University considers its adjunct professors to be employees, and as employees the University withholds employee taxes on earnings. Full-time professors, unlike the adjunct professors, pay into their own retirement system and not social security. There is a private letter ruling which states online instructors should or could be considered statuary employees. A statuary employee is one that gets no taxes withheld other than social security and still receives a W-2. A statutory...

For this assignment, you will write a paper explaining employee vs. independent contractor classifications using the...

For this assignment, you will write a paper explaining employee vs. independent contractor classifications using the Madrid and Berne case scenario provided below. Scenario: Madrid and Berne is a top-rated accounting firm with offices in Phoenix and Tucson. Madrid and Berne wanted to provide bookkeeping as an additional service to its clients. It has hired Joan Newman Business Services, with offices in Phoenix, Flagstaff, Tucson, and Yuma, to perform contract bookkeeping services for Madrid and Berne clients who request and...

What is an independent contractor? Can you think of a common type of independent contractor?

What are some attributes that may distinguish an employee from an independent contractor? Do you think...

What are some attributes that may distinguish an employee from an independent contractor? Do you think it is ethical to pay employees "under" the table and give them a 1099? What if any are the effects of the new stimulus package on 1099 employees How much will the stimulus package provide to each family, what are the regulations regarding receiving payment and will it be taxable?

Employee versus independent contractor Juan is an accounting graduate major who works during the day and...

Employee versus independent contractor Juan is an accounting graduate major who works during the day and takes classes in the evening. He was excited to finally land his first accounting job doing bookkeeping for a local bakery. In his new job, Juan works 30 hours a week at the bakery’s main office. His excitement quickly dampened when he realized that his new employer was not withholding any income taxes or FICA taxes from his paycheck. Apparently, Juan’s employer is treating...

What is the importance of being able to distinguish independent contractors from employee. In what circumstances...

What is the importance of being able to distinguish independent contractors from employee. In what circumstances would you deem this distinction relevant, and why? What are the main factors used by the courts in addressing the issue?

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