1 (25Marks)

Janes Auto Centre Ltd. operates as an auto body repair business. In2010, the company hired Nancy Jones to repair vehicles. The company has treated Nancy Jones as a self-employed contractor from 2010 to present.

Facts:

Nancy Jones was hired as a mechanic.

In2010, Janes Auto Centre Ltd. & Nancy Jones both signed a written contract, which stated that Nancy Jones was a contractor.

Nancy Jones is paid $ 35 an hour.

Nancy Jones invoices Janes Auto Centre Ltd. for all of her mechanic work.

Nancy Jones receives no employee benefits such as vacation pay, dental or health.

Nancy Jones is not guaranteed any minimum amount of pay by Janes Auto Centre Ltd.

Janes Auto Centre Ltd. is open 7 days a week, 8:00 AM to 5:00 PM.

Nancy Jones could work any day of the week, and, she could choose her own hours of work.

Janes Auto Centre Ltd. had no minimum or maximum hours of work set for Nancy Jones.

Nancy Jones keeps a log book of her own hours worked.

Nancy Jones hired an assistant to do the accounting/billing work.

Nancy Jones has her own automotive tools.

Nancy Jones incurred operating expenses including auto supplies and liability insurance.

Janes Auto Centre Ltd.s intention was that Nancy Jones was a self-employed contractor.

Nancy Jones has a GST number and charges Janes Auto Centre Ltd. GST

Nancy Jones keeps her own business books & records.

Nancy Jones filed her 2010 to 2015 income tax returns as a self-employed contractor.

Required:

Is Nancy Jones an employee of Janes Auto Centre Ltd. or is she a self-employed contractor? List all of the factors that led you to your conclusion.