1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
koban [17]
3 years ago
13

Tom and Mark tell Susan that they are considering expanding store hours and advertising. They wish to concentrate their efforts

on management and growth. They wish to hire several workers, but they are uncertain whether or not these workers would be designated as employees or independent contractors. Susan asks Tom and Mark to describe the nature of each position, the hours worked, and the control they exercise over each worker. Jack Walker, Grant Worthington, and Phil Costello are first-rate salespeople who have extensive experience in selling men's clothing. They would each work 40 hours per week and be paid a base salary plus commission. The salesmen would be prohibited from working elsewhere. They would be required to wear suits, and their work schedules would be set by L&S. Paid vacation and sick leave would be given as well. Jack, Grant, and Phil would have no discretion in deciding whether to attend to a customer's needs, and they would have no authority to hire assistants. Nancy Cooke is being employed as an administrative assistant. Her duties will include bookkeeping, ordering, and typing, as well as telephone reception. She will work from 10:00 a.m. to 6:00 p.m., Monday through Friday. Martha Winslow, a seamstress by trade, is being hired to perform the necessary alterations on the clothing. She would be available for appointments on Tuesdays and Thursdays from 6:00 p.m. to 8:00 p.m. and on Saturday afternoons from 2:00 p.m. to 4:00 p.m. Martha would set her own hours in addition to these, depending on the workload. Martha has set a fee schedule covering the various types of alterations performed on a per item basis. Stephanie Russo is a Web page design specialist with a degree in graphic arts. She is being trained to create a Web page for L&S. After that, she will act as a consultant for purposes of Web advertising. Lucy Johnson is being hired to clean the store after hours. She will set her own schedule, and she estimates working 1 to 2 hours per night. Stephanie is being paid on a one-time fee basis for the Web design work and then will be retained on an hourly basis as a consultant. Lucy is being paid a flat fee per night, regardless of the length of time it takes for her to clean the store. Which of these people are employees, and which are independent contractors?
Business
1 answer:
emmainna [20.7K]3 years ago
7 0

Answer:

Employees and Independent Contractors

a) The Differences are:

1. Nature of each position:  The employee is a worker who is engaged in a contract of service with an employer.  She earns a periodic salary based on a fixed time per week, e.g. 40 hours per week, Monday to Friday.  On the other hand, a contractor engages in a contract for service.  She is engaged for a fee to carry out a specified assignment or project.  The independent contractor is self-employed.  She can work for many other organizations and for any number of hours.

Hours worked:  The employee works some fixed hours per day and per week.  An independent contractor does not have any fixed hours of work.  She can choose to work more than 40 hours per week.

Control by Employer:  For the employee, the employer dictates most of the details about the work.  She can be given any work by the employer.  She enjoys sick leave and other emoluments.  She lacks discretion on which tasks to work on.  She does not have "authority to hire assistants."  The independent contractor does her work to suit her convenience, but ensures that the customer is satisfied with her work to enable contract renewal.

b) Examples of Employees and Independent Contractors from the case study:

i) Employees:

1. Jack Walker, Grant Worthington, and Phil Costello, salespeople

2. Cooke, an administrative assistant

ii) Independent Contractors:

1. Martha Winslow, a seamstress by trade

2. Stephanie Russo, Web Advertising Consultant

3. Luck Johnson, Cleaner

Explanation:

The general rule for differentiating the two types of workers is that an independent contractor directs the result of the work and not what will be done and how it will be done.  Her earnings (fees) are subject to Self-Employment Tax.  The employee does not control the result of her work and the tasks, but can control how it will be done.  Her earnings are subject to Paye Tax.

You might be interested in
There is low interdependence, performance ambiguity, and costs of control in firms pursuing Multiple Choice a localization strat
amm1812

Answer:

Option A (localization strategy) is the right approach.

Explanation:

  • Localization strategy seems to be a method of transforming services or products to something like a unique language, culture as well as the appropriate "look-and-feel" community.
  • Preferably a good or product is designed such that it is fairly sufficient to accomplish this strategy. And it is, therefore, possible to obtain an internationalized products.

Certain options given aren't relevant to the contexts in question. So choice A is indeed the correct way to do things.

8 0
3 years ago
In an international transaction involving a bank as a third party, the exporter ships the product after:
nataly862011 [7]

Answer: the bank promises to pay on the importer’s behalf

Explanation:

8 0
2 years ago
Often an employer will open an interview with, "tell me about yourself." what question is the employer really asking?
laiz [17]
Qualities you have for this position.
6 0
3 years ago
Ace Construction Company contracts to build a retirement community on land owned by Smith. Jones, an adjoining landowner, expect
Arada [10]

Answer:

d.) Jones is an incidental beneficiary and has no right to sue for Ace Construction's breach of the contract.

Explanation:

Jones was not a direct party to the contract, in fact, any profit which he was supposed to receive was incidental in nature and thus he cannot sue Ace Construction's breach of the contract.

4 0
3 years ago
Under the franchise model, if pods were to engage in dubious/controversial activities, then franchisees might see a decline in b
fenix001 [56]
This is known as the coattail effect. It is when the actions or activities of the main branch of a business or the franchise branches would impact the whole business. This is one weakness of a franchise business. since one wrong move from just one small branch would might have a larger impact on the whole name of business.<span />
3 0
3 years ago
Other questions:
  • What is important to know about yourself when making a career choice?
    10·1 answer
  • Under the _____ inventory method, accounting records maintain a continuously updated inventory value.
    13·1 answer
  • Dual distribution refers to
    14·1 answer
  • Whether a buyer or a seller pays more of a commodity tax depends on:
    5·2 answers
  • Manny wants to be involved in a business but is not sure which type of business to join or create. He has capital to invest. He
    9·1 answer
  • Which of the following is not a true statement? a. Companies that are believed to have high bankruptcy risk generally receive lo
    10·2 answers
  • What is the primary goal of financial management for a sole proprietorship? maximize net income given the current resources of t
    5·1 answer
  • Dmitri recently lost his job as a waiter at a local restaurant. A recent increase in the minimum wage keeps local employers from
    8·1 answer
  • The replacement cost of an inventory item is below the net realizable value and above the net realizable value less a normal pro
    10·1 answer
  • The _____ indicates whether a firm earned a profit or suffered a loss over the past accounting period. Answer
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!