For this assignment, you will write a paper explaining employeevs. independent contractor classifications using the Madrid andBerne case scenario provided below.
Scenario:
Madrid and Berne is a top-rated accounting firm with offices inPhoenix and Tucson. Madrid and Berne wanted to provide bookkeepingas an additional service to its clients. It has hired Joan NewmanBusiness Services, with offices in Phoenix, Flagstaff, Tucson, andYuma, to perform contract bookkeeping services for Madrid and Berneclients who request and need such services. Madrid and Berneentered into an independent contractor agreement with Joan NewmanBusiness Services that states that Joan is an independentcontractor and agrees that her business is an independentcontractor of Madrid and Berne.
After entering in to the agreement, Joan worked only on jobsassigned by the employer and was paid a commission for the work.The commission was based on the fees determined by Madrid and Berneand paid by the clients to Madrid and Berne. Joan was paid on aweekly basis. She used available and unused office space at Madridand Berne, along with Madrid and Berne's equipment and supplies.This made it easier for clients to utilize Joan's services and tobe familiar with the offices. Madrid and Berne reviewed Joan's workand was able to return faulty work to Joan for corrections beforeit delivered the work to the clients.
Provide a written analysis of the rules for distinguishingbetween employee and independent contractor.
Determine whether Joan should be treated as an employee orindependent contractor.
What are all the key factors for determining classification inthe scenario above? Use the concepts that have been presented sofar in the course and your own research for this case study.
In your conclusion, explain which classification you believeapplies to Joan—employee or independent contractor.
