To answer the question, the court considers a number of factors a) control b) ownership of tools c) chance of profit d) risk of loss e) intergration f) intention of the parties The Scenario An Accountant is offered a job with start up tech company called Hubba on the following terms 1 year fixed term part time contract, with possibility of renewal 25 hours per week at a rate of $50 hour Paid monthly Report to CFO and perform duties as required by CFO Worker is required to attend finance accounting department meetings Duties include preparing and review financial records, annual filings, and grant reports, conduct internal audits, implement accounting policies, processes and systems and provide financial tax advice Contract terms Contract does not stipulate that Worker has to exclusively work for Hubba (note Worker does not have any other clients) Contract does not stipulate whether Worker is employee or independent contractor Worker entitled to 3 weeks unpaid vacation Worker is not reimbursed for expenses Worker is not entitled to health dental parental benefits Worker provided company laptop, cell phone, email, business card and office Worker required to supply accounting software and other resources, materials to perform job Worker entitled to work remotely provided that it attends the office one day per week and submits weekly reports Worker subject to restrictive confidentiality covenants Based on the facts above, answer the following questions Is the Accountant more likely to be classified as an employee or independent contractor of Hubba Apply the facts to the legal test set out above (analyze the six factors) What are 2 advantages and 2 disadvantages associated with the classification of an independent contractor If you are the Accountant, and Hubba asks for your input, what status do you prefer employee or independent contractor Explain What are some legal consequences Hubba could face if it misclassifies the Accountant and treats it as an independent contractor when it should have been treated as an employee

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jun 29, 2024

To answer the question, the court considers a number of factors:

a) control

b) ownership of tools

c) chance of profit

d) risk of loss

e) intergration

f) intention of the parties

The Scenario

An Accountant is offered a job with start-up tech company called "Hubba" on the following terms:

1 year fixed-term part-time contract, with possibility of renewal
25 hours per week at a rate of $50/hour
Paid monthly
Report to CFO and perform duties as required by CFO
Worker is required to attend finance/accounting department meetings
Duties include: preparing and review financial records, annual filings, and grant reports, conduct internal audits, implement accounting policies, processes and systems and provide financial/tax advice

Contract terms:

Contract does not stipulate that Worker has to exclusively work for Hubba (note: Worker does not have any other clients)
Contract does not stipulate whether Worker is employee or independent contractor
Worker entitled to 3 weeks unpaid vacation
Worker is not reimbursed for expenses
Worker is not entitled to health/dental/parental benefits
Worker provided company laptop, cell phone, email, business card and office
Worker required to supply accounting software and other resources, materials to perform job
Worker entitled to work remotely provided that it attends the office one day per week and submits weekly reports
Worker subject to restrictive confidentiality covenants

Based on the facts above, answer the following questions:

Is the Accountant more likely to be classified as an employee or independent contractor of Hubba? Apply the facts to the legal test set out above (analyze the six factors).
What are 2 advantages and 2 disadvantages associated with the classification of an independent contractor?
If you are the Accountant, and Hubba asks for your input, what status do you prefer - employee or independent contractor? Explain
What are some legal consequences Hubba could face if it misclassifies the Accountant and treats it as an "independent contractor" when it should have been treated as an employee?