memorandum

Topics: Employment, Tax, Unemployment benefits Pages: 2 (517 words) Published: October 7, 2013
Memorandum
To: Carol A. Cleaver
From:
Date: September 25, 2012
Re: BSAD 1110 Quiz # 3

The article is talking about who defined as employee or independent contractor by the employment law The general rule for independent contractors is that these workers have the right to control or direct only the result of the work they perform, and not the means and methods of accomplishing the result. If a person performing services for a business supplies his own tools, works on his own schedule, receives little or no training, and works from his or her own office, generally he will be classified as an independent contractor Usually, someone who performs services for a business is an employee if the business or organization can control what will be done and how it will be done. If a worker goes to an office of a business regularly, has no control over scheduling, receives training and instruction from the business or organization, and does not have control over the work he or she performs, that person is an employee and not an independent contractor Generally, an employer has to withhold income taxes, withhold and pay Social Security and Medicare taxes, and pay unemployment tax on wages paid to an employee, but not to independent contractors. Generally, an employer benefits more by classifying workers as independent contractors, because the employer will not have to pay employment taxes, health and insurance benefits, vacation and holidays, retirement plan contributions, and other costs that it would if those workers were employees. Also, unemployment insurance benefits and state workers compensation systems are designed to protect employees, and do not protect independent contractors. If the business terminates that person's services, he or she generally will not be eligible for unemployment benefits. Similarly, most employment rights laws have been enacted to protect employees and not contractors. Independent contractors generally do not receive employment benefits...
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