For your written project, you will research and write a business memo regarding an aspect of payroll accounting. This is an opportunity for you to further explore one of the many topics we have covered throughout the course in greater detail. 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 assist 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 the 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. For you research, here are some suggestions for references to check out: 1. Textbook page 3-5. See Figure 3-2 for test for Independent Contractor Status. 2. Textbook page 4-28 & 4-29 3. See web links included in this folder for IRS and other relevant articles.