A crucial concept to get out of this course is to understand the implications of a person being considered an employee or an independent contractor. A test used by the IRS to determine who is an independent contract and who is an employee. Consider this area of law and comment on the following:

1) Why is this distinction so important?

2) What is the IRS test to determine if someone is an employee or independent contractor? Does this test ALWAYS answer this question?

3) If you were a tavern owner and needed to have a bouncer work your busy nights, do you hire them as an employee or an independent contractor? Why?