Bob is working as a consultant at Wolf Lamp LLP in British Columbia, Canada. Bob has a temporary workstation set up with a computer, calculator, printer, telephone and scanner. When working on specific projects Bob sometimes ends up bringing some specialized tools with him. He usually starts work around 8:30-9:00am Monday-Friday. He can come in and leave anytime he just must be working from 9-4 Monday-Friday. He gets 2 weeks off a year and 10 sick days. Bob will sometimes bring his work home for his wife to assist him with when he gets too much work at the office, she is also a trained CPA. Bob and his wife love that Bob gets to work for Wolf Lamp LLP as he is paid very well. The one downfall is that if the specific consulting work, he does runs out, they may let him go.

a) Please determine if Bob would be considered an employee or a contractor for tax purposes?

b) Please explain, in your own words, why it matters if Bob is an employee or contractor for tax purposes?