Access Millions of academic & study documents

3.3 Business Organizations Discussion Pr

Content type
User Generated
Subject
Engineering
Type
Homework
Showing Page:
1/5
1
Running head: ANALYSING INDEPENDENT CONTRACT AND BUSINESS FORMS
Analysing Independent Contract and Business Forms
Student Name:
Professors Name:
Institution:
Date

Sign up to view the full document!

lock_open Sign Up
Showing Page:
2/5
ANALYSING INDEPENDENT CONTRACT AND BUSINESS FORMS 2
Analysing Independent Contract and Business Forms
Scenario 1
The U. S flying school, like other business entities, may consider its workers (instructors)
as independent contractors rather than employees in order to reduce costs of service and thus gain
a competitive advantage over its competitors. The business does not have to incur costs associated
with workers compensations and payroll taxes thus can charge customers a low rate of fees as
compared to competitors (Leberstein & Ruckelshaus, 2016). However, I see a problem with
considering the instructors as independent contractors for several reasons. First, the law requires
that only workers who are running other businesses are to be classified as independent contractors
(Leberstein & Ruckelshaus, 2016). Such a business must require specialized skills and the workers
must have enough capital to run that business for them to be classified as independent contractors
(Leberstein & Ruckelshaus, 2016).
There is a risk that the U. S flying school can violate the laws by misclassifying the
instructors. This is because it is not easy to know with certainty that all workers are running their
own business and that those businesses meet the conditions set in the law (Leberstein &
Ruckelshaus, 2016). In the case of misclassification of instructors as independent employees, yet
they are actually supposed to be employees, both the government and the workers can sue the
flying school and expose it to legal fines. The second concern is that the U. S flying school might
deprive the state off the revenue from payroll taxes and gain undue advantage over other competing
flying schools. As noted by Leberstein & Ruckelshaus (2016), the states lose revenue due to the
misclassification of employees that deny them deserved payroll taxes. In case the company

Sign up to view the full document!

lock_open Sign Up
Showing Page:
3/5

Sign up to view the full document!

lock_open Sign Up
End of Preview - Want to read all 5 pages?
Access Now
Unformatted Attachment Preview
1 Running head: ANALYSING INDEPENDENT CONTRACT AND BUSINESS FORMS Analysing Independent Contract and Business Forms Student Name: Professors Name: Institution: Date ANALYSING INDEPENDENT CONTRACT AND BUSINESS FORMS 2 Analysing Independent Contract and Business Forms Scenario 1 The U. S flying school, like other business entities, may consider its workers (instructors) as independent contractors rather than employees in order to reduce costs of service and thus gain a competitive advantage over its competitors. The business does not have to incur costs associated with workers’ compensations and payroll taxes thus can charge customers a low rate of fees as compared to competitors (Leberstein & Ruckelshaus, 2016). However, I see a problem with considering the instructors as independent contractors for several reasons. First, the law requires that only workers who are running other businesses are to be classified as independent contractors (Leberstein & Ruckelshaus, 2016). Such a business must require specialized skills and the workers must have enough capital to run that business for them to be classified as independent contractors (Leberstein & Ruckelshaus, 2016). There is a risk that the U. S flying school can violate the laws by misclassifying the instructors. This is because it is not easy to know with certainty that all workers are running their own business and that those businesses meet the conditions set in the law (Leberstein & Ruckelshaus, 2016). In the ...
Purchase document to see full attachment
User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.
Studypool
4.7
Indeed
4.5
Sitejabber
4.4

Similar Documents