Business Finance
LAW421 Phoenix Differences of Employee and Independent Contractor Paper

LAW421

University of Phoenix

Question Description

Scenario 1: Imagine you own a small business and after a year in business you have decided to hire a bookkeeper for 2 hours every Friday to bring your books up to date and to process payroll. You want the work performed at your business using the business's computer and software. The bookkeeper's work is very specific and you are paying $25 per hour.

Scenario 2: Imagine you start managing your family's business and after taking the job you realize the business hasn't had its bank statements reconciled for a year. None of the checks have been recorded in the checkbook or in the company's bookkeeping software. You hire a bookkeeper to help you get things in order. They have to put all canceled checks in order, enter the missing checks in the bookkeeping software, and reconcile the bank statements using the company's bookkeeping software. This is a one-time project that you estimate will require 2 weeks of work. You are paying $25 per hour.

Scenario 3: Imagine as the new manager of the family business you also decided to institute a new policy for handling expense reimbursements to employees. You hire an accountant to prepare the procedure manual for the finance department and prepare a new section of the Employee Handbook. The accountant must meet with company employees to gain an understanding of the new policy. The accountant will be paid a flat fee for the two tasks.

Analyze the scenarios above using a minimum of 1,050 words and include the following:

  • Compare and contrast the three scenarios in a table including:
  • Whether the person hired in each scenario is an employee or independent contractor.
  • The reasons why the person hired in each scenario is an employee or independent contractor.
  • Explain the pros and cons of hiring someone as an employee versus an independent contractor.
  • Discuss what, if any, legal liabilities and responsibilities a business has for its employees as compared to independent contractors.
  • Discuss the consequences a business might face for misclassifying an employee.

Cite at least 4 recent scholarly references.

Format your paper consistent with APA guidelines.

Paper must pass less than 5% plagiarism checker.

Final Answer

Attached.

Employee versus Independent Contractor – Outline
I.

Employee versus Independent Contractor

A. Wages
B. Company policies
C. Role performance
D. Contract duration
E. Safety of employees


Running head: EMPLOYEE VERSUS INDEPENDENT CONTRACTOR

Employee versus Independent Contractor
Name
Institution

1

EMPLOYEE VERSUS INDEPENDENT CONTRACTOR

2

Employee versus Independent Contractor
Scenario 1

Scenario 2

Scenario 3

Employee or

In the first scenario

The book keeper is an

The person hired in

Independent

the person hired is an

employee and as the

the third scenario is an

Contractor

employee and this is

scenario portrays the

independent

because the offering

number of hours that

contractor. The

of the services is

the individual should

characteristics of an

dictated by the

work and the use of

independent

employer where there

the company software

contractor are present

is stating of the

in the recording of the

and this includes

number of hours

transactions. The

setting of the time that

worked and the use of

employee is working

the contractor visits

the company software

under the instructions

the employees. He is

and computer. The

of the employer in

offering consulting

employer specifies the recording of the

services that includes

s alary paid per hour

information of the

the setting of the

and this classifies the

company in the books

accounting policies

individual under

and this necessitates

and in understanding

employment.

for the classification

of the functioning of

as an employee. The

the organization the

book keeper role is

accountant meets with

outlined as the

the employees in

reconciliation of the

getting the

EMPLOYEE VERSUS INDEPENDENT CONTRACTOR
company accounts.

3
information on the
functioning of the
organization.

Employee

Independent
Contractor

Pros and Cons of

Pros

Pros

hiring an employee

An employee works

An independent

versus and

under a specified

contractor works on

independent

contract by the

their own terms and

contractor

employer.

they dictate the time

1.The pros of hiring

that they are engaged.

an employee is that

Pros

there is direct and

1. They perform their

control of the work

work as specified in

that an employee

the contracts with

performs in the

minimal supervision.

organization

2. As an employer one

2. There is assignment saves money in terms
of the role and the

of the costs of training

responsibilities that an and salary obligations
employee should

to the employees

perform.

(Kiely, 2011).

3. It is to train an

3. Reduction of the

EMPLOYEE VERSUS INDEPENDENT CONTRACTOR
employee in

legal obligations

enhancing the

towards the

operations of the

employees.

organization.

Cons

4. There is delegation

1. There is less

of duties to the

control of the work

employees meaning

that the contractor

that they are focused

handles and this

in the achievement of

means that there is no

the needs of the

control on the

organization.

decisions that they

5. Employees are

make.

aware of the strategies

2. The signed contract

that the company uses

determines the

in enhancing its

duration of period that

objectives leading to

the contractor works

reduced costs of

meaning that one

training.

cannot fire the

Cons

contractor.

1. The laws and

3. The company is

regulations governing

liable for the injuries

the employee-

that contractor incurs

employer relationship

during the time of the

4

EMPLOYEE VERSUS INDEPENDENT C...

henryprofessor (68714)
Carnegie Mellon University

Anonymous
Return customer, been using sp for a good two years now.

Anonymous
Thanks as always for the good work!

Anonymous
Excellent job

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