Fatima has an annual contract with Simpson Insurance Brokers to provide property maintenance services; this...
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Accounting
Fatima has an annual contract with Simpson Insurance Brokers to provide property maintenance services; this includes lawn care, snow removal and parking lot maintenance. Fatima spends, on average, 20 hours per week working at the companys premises and is paid a flat amount monthly. She hires part-time workers, when necessary, to assist her. Fatima does not have any other clients.
Fatima uses her own small tools; however the company supplies and maintains a riding lawn mower and a snow plow for her use. Her contact at the company is Alan Sinclair, the Facilities Manager, who meets with her every Monday to discuss the work to be done that week. Alan approves Fatimas monthly invoices and submits them to Accounts Payable.
Does Fatima have a contract of service or a contract for service with Simpson Insurance Brokers? As the companys Payroll Supervisor, explain to Alan the process and factors you used to make your decision.
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