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3 pages/≈825 words
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Style:
APA
Subject:
Management
Type:
Essay
Language:
English (U.S.)
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Topic:

Employee vs. Independent Contractor. Management Essay

Essay Instructions:

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.
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.
Provide an explanation of why it is important to know the distinctions between employees and independent contractors when operating a business.
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.
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.
In an additional 250-500 words, discuss the following from a Christian worldview perspective.
One ethical issue or dilemma the scenario presents for Madrid and Berne and strategies for addressing the issue or dilemma.
One ethical issue or dilemma the scenario presents for Joan Newman and strategies for addressing the issue or dilemma.
In an additional 250-500 words, discuss the following from a Christian worldview perspective.
One ethical issue or dilemma the scenario presents for Madrid and Berne and strategies for addressing the issue or dilemma.
One ethical issue or dilemma the scenario presents for Joan Newman and strategies for addressing the issue or dilemma.

Essay Sample Content Preview:

Employee vs. Independent contractors
Name:
Institutional Affiliation:
Employee vs. independent contractors
The classification of workers as either an employee or an independent contractor has many implications on the costs and benefits they enjoy, the kind of relationship the worker has with the employer, and the involvement of the federal government in the regulation. Various considerations are used in worker classification leading to the particular classification i.e. either employee or independent contractor. The classification can be viewed through the type of employee/employer relationship dictated in the type of agreement they signed. The responsibility of the federal government is to regulate the classification of workers through analyzing the effects the classification has on the workers, employees and more importantly the implication it has on federal taxes. This paper looks at the differences between employees and independent contractors deriving from a case scenario of the agreement between Madrid and Berne Accounting firm and Joan Newman Business services. The paper looks at the agreement in the contract between the two firms and how it affects the type of employee/employer relationship that they profess.
Importance of employee/ independent worker distinction
The legal constraints about the classification of workers are the main considerations firms consider before dictating the term of contracted agreements that they can into terms. The effects an agreement has on the cost of hiring, wages and other benefits, is greatly influenced by the type of agreement signed making it the interest of the IRS and the department of labor to be greatly involved in the process to ensure that employees do not fall prey of malicious hiring practices of firms (Messina et al, 2019). The importance to firms and individuals alike to consider the type of work agreement they sign is determining by studying the unique situation regarding the legal aspects and profitability for both firms and workers. This is because the variance of benefits depends on analyzing the situation since there is no universal declaration that one of the hiring approaches is beneficial than the other (Carlson, 2018).
Case study
In this case study, the employer Madrid and Berne (MnB) needed expert book-keeping services which were the reason why they sought the services of Joan. The fact that the company was looking for the provision of extra services that could be specifically supplied by Joan was the first basis for the classification of Joan as a contractor and not an employee. The main job description of Joan was to provide book-keeping services to MnB’s clients. The plurality of the recipients of Joan’s services places her under the contract segment as employees serve on...
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