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Employer/Employee Relationship
Many of the problems employers have in regard to worker classification arise when determining whether a worker is an employee or an independent contractor. It may be cheaper to use independent in a business than employees because the taxing and reporting requirements are much less costly than they are for employees. It is incumbent for the Little Lamb Company to determine whether or not an employee-employer relationship exists or whether Mary should be paid as a contractor.
Independent Contractor or Employee
Under the common law test, if the employer has the right to control what work will be done and how that work will be done, then an employer-employee relationship exists and the worker is a common law employee. This is true regardless of whether the employer actually exercises the right on a regular basis. However, if an individual is subject to the control or direction of another only as to the results to be accomplished, and not as to the......

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Approximate Word Count: 1111
Approximate Pages: 5 (250 words per double-spaced page)

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