THE EMPLOYEE-EMPLOYER RELATIONSHIP

SCENARIO

Leana has an annual contract with Industrial Injection Molding Solutions to provide property maintenance services; this includes lawn care, snow removal and parking lot maintenance. Leana spends, on average, 20 hours per week working at the companys premises and is paid a flat amount monthly. She hires part-time workers, when necessary, to assist her. Leana does not have any other clients.

Leana uses her own small tools; however the company supplies and maintains a riding lawn mower and a snow plow for her use. Her contact at the company is Kinta Abadio, the Facilities Supervisor, who meets with her every Monday to discuss the work to be done that week. Kinta approves Leanas monthly invoices and submits them to Accounts Payable.

Does Leana have a contract of service or a contract for service with Industrial Injection Molding Solutions? As the companys Payroll Manager, explain to Kinta the process and factors you used to make your decision.