You Decide Template
Name _Wanda Jackson Date_5/8/13_____
Scenario Summary:
Your Role/Assignment:
Your role is to decide if Karen is an independent contractor or an employee and discuss some of the preventative and ethical situations that are occurring in this case.
Questions:
1. Do you feel that Karen is an independent contractor or an employee? What is your rationale for this decision?
I think that Karen was an independent contractor. My rationale for this is the fact she was issued a 1099 for the previous five years. She has not ever received a W-2. Karen was not provided any benefits during her time with ABC Utility. Even after her husband’s passing, she was denied benefits. She was asked to develop training materials. Karen has a contract with ABC Utility. She has control over her schedule. Karen has worked for others during her employment with ABC Utility. According to the IRS 20 factor analysis test, Karen is an independent contractor. She does not have the right to quit due to being on a contractual basis.
2. What factors do you feel help contribute to Karen being an employee?
Cynthia removed the word temporary from her title. She had two title changes during her relationship with ABC Utility. Karen has been working full time with ABC Utility and has been building a working relationship with other employees on a continuous basis. Karen is paid a base salary of $10,000 per month; not paid per job as most usual independent contractors. Being that Karen has been at ABC Utility, most coworkers see her as a permanent fixture in the everyday workplace. Her title was changed to be more consistent with others in the same department doing similar work from Human Resources Temporary to Human Resources Consultant.
3. What factors favor her being a contractor?
Karen has worked for other companies throughout the five years. She has not limited her income to just ABC Utility. Karen is kept on retainer by another client....