Question

Al, walks in off the street, says the grounds could use some sprucing up, and offers to do it for $8 an hour. Management gives him a try for 6 months. He is told to come in Monday–Friday, from 9 a.m.-1 p.m., use the company’s garden tools and check in with the maintenance supervisor who will tell him what to do. Your company:
a. can pay Al as an independent contractor and issue a 1099 at year end
b. must pay him as an employee, withhold appropriate taxes and issue a W-2 at year end
c. can choose a. or b., depending on your company’s policy
d. can opt to treat Al as a temp

Answer 1

Answer:

Option B must pay him as an employee, withhold appropriate taxes and issue a W-2 at year end

Explanation: He is paid based on hours worked, and uses the company equipment thus is an employee who is controlled by an employer. The independent contractors buy their own supplies, provide their own equipment and paid based on tasks performed