For the written project, you will research and write a business memo regarding an aspect of payroll accounting. Assume that you are a payroll supervisor for a business with employees. As a payroll supervisor, you must be aware of many payroll related laws and issues and may be involved in establishing payroll related company policies to remain in compliance with such laws. Write a memo to the business owner addressing the question posed in the topic below. In this memo, address the topic question and explain why you think this is an important issue for the business.

Topic: Employee or Independent Contractor?

The owner of the business is considering hiring an individual to assits with a special project. the owner is debating whether the individual should be classified as an independent contractor or an employee, As the payroll supervisor, please inform the owner of the rules related to this determination and what the impact on the business is. For example, what are differences to the employer in paying and withholding of payroll taxes? Are there penalties or misclassifying workers as independent contractors? What are the differences in reporting for independent contractors versus employees? Please cite examples of when it would be appropriate to classify an individual as an independent contractor for the business and steps you would take to ensure this is being classified correctly.

The paper should be approximately 1 1/2 to 2 pages in length, single-spaced. Your memo should be a well-written business document, with attention paid to spelling and grammar.