Question

The purpose of this assignment is to identify laws and federal regulations governing employment.

Consider what you have learned about employment laws and federal regulations governing employment, particularly regarding the distinctions between independent contractors and employees and how business is conducted with each. Read the scenario 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 hired Joan Newman Business Services, with offices in Phoenix, Flagstaff, Tucson, and Yuma, to perform contract bookkeeping services for Madrid and Berne clients who requested and needed such services. Madrid and Berne entered into an independent contractor agreement with Joan Newman Business Services. The contract stated that Joan Newman is an independent contractor and agrees that her business is an independent contractor of Madrid and Berne.

After entering into the agreement, Joan worked solely on jobs assigned by Madrid and Berne and was paid a commission for the work. The commission was based upon the fees determined by Madrid and Berne and paid by the clients to Madrid and Berne. Joan was paid on a weekly basis. She used available and unused office space at Madrid and Berne, along with Madrid and Berne's equipment and supplies. This arrangement made it easier for clients to utilize Joan's services and be familiar with the offices. Madrid and Berne reviewed Joan's work and returned faulty work to her for corrections before delivering the completed work to the clients.

Assignment

In a 500-750 word paper, apply what you have learned about the distinctions between employees and independent contractors to the scenario by discussing the following.

1. Provide an explanation of why it is important to know the distinctions between employees and independent contractors when operating a business.
2. Discuss the key factors for determining Joan's employee classification using the concepts that have been presented so far in the course and your own research relevant to the scenario.
3. Using the rules for distinguishing between employee and independent contractor, discuss whether Joan's designation as an independent contractor was correct, and justify your designation by citing laws and federal regulations.

Answer 1

I feel that it is required to know the qualification among representatives and self employed entity. The primary explanation is that being a worker or self employed entity, it is critical to think about the work assigned to him. He should have a thought regarding the work he should perform. Understanding his accurate job plainly in the association, he can perceive whether the work assigned to him is reasonable or not. Here a representative methods a solitary laborer or an aggregate gathering of laborers. A free agreement implies that an organization or an association like Joan's Newman Business comes into a concurrence with an organization that they will work with them. He can work with numerous customers not at all like the representative who must work for a similar association for quite a while. A self employed entity can get commission as he did in the above situation. So there are a ton of points of interest when contrasted with be a representative. Much the same as we above observed, it is moderately simple for individuals to use Joan's administrations and furthermore to be comfortable with their workplaces. Madrid and Berne truly has a bit of leeway here, in light of the fact that they give accounting to its clients as well as give something the opposition doesn't give. So we can unmistakably observe for what reason is it essential to know the distinction between self employed entity and worker as it makes the appointment of work simpler from their perspective as they realize what to do and how to do it.

The most significant key factors that decide Joan's characterization incorporates; long periods of work, preparing, coordination of services,type of work,availability of administrations and installments and so on.

Hours of work:

If there should arise an occurrence of the self employed entity, he has a built up set of hours he should work when gets into an agreement with an organization. So he may not work simply like a standard representative. So the long periods of work he does is a key factor that recognizes him.

Trainiing:

Preparing of the self employed entity is finished by very much experienced higher authorities with the goal that they get the best presentation to their assigned work.

Integration of services:

His incorporation to the firm he is contracted with really shows that he is liable to control and course. He has not many rights which the representative never has.

Type of work:

He can embrace between low maintenance and all day works. The agreement between the self employed entity and the association contains the sort and long periods of work he is contracted with

Availability of services:

The nature and accessibility of administrations which are performed by the self employed entity for the most part shows his sculptures as a self employed entity.

Payments:

Normally when customary installments made on day, month and year then there is a characteristic connection between the business and representative. Contractual workers like these get commission which again shows that they are self employed entity.

In this way these are some key factors that examine about the key variables which discover that he is an autonomous specialist.

The representative is utilized by the business for a work of ordinary premise though the self employed entity is an independently employed individual who works for the association for some pay. At that point the representative's wellspring of pay is compensation though the self employed entities gets compensation for his administrations from the activities. The representative works for a particular association while the self employed entity can have numerous clients.The worker's will in general work for more and they have better relationship with manager and the free specialist works for as brief period. S these are some key unmistakable factors between the self employed entity and a worker.

For the commission and customer story he has I would state that his agreement with this firm was an awesome one. They are likewise profited by the firm and simultaneously they get their bit of leeway of offering types of assistance to the general population. Joan's agreement is getting an effective instrument for him to really grow his benefit. Hence this turns out that Joan's assignment as an autonomous specialist is right.