Read the article “Bed, Board—and Big Trouble” in the October 23, 2002, online issue of Business Week. (This book’s Website provides a free link.)

Required 1. What arrangement does the motel owner have with the long-term resident?

2. What risks is the motel operator exposed to by this arrangement?

3. How will the state of New York probably classify the tenant, and what should the motel owner do to respond to New York’s probable action? Are there payroll tax implications?