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Explain employee vs. independent contractor classifications using the Madrid and Berne case scenario provided below.
Scenario:
Madrid and Berne is a top-rated accounting firm with offices in Phoenix and Tucson. Madrid and Berne wanted to provide bookkeeping as an additional service to its clients. It has hired Joan Newman Business Services, with offices in Phoenix, Flagstaff, Tucson, and Yuma, to perform contract bookkeeping services for Madrid and Berne clients who request and need such services. Madrid and Berne entered into an independent contractor agreement with Joan Newman Business Services that states that Joan is an independent contractor and agrees that her business is an independent contractor of Madrid and Berne.
After entering in to the agreement, Joan worked only on jobs assigned by the employer and was paid a commission for the work. The commission was based on the fees determined by Madrid and Berne and paid by the clients to Madrid and Berne. Joan was paid on a weekly basis. She used available and unused office space at Madrid and Berne, along with Madrid and Berne's equipment and supplies. This made it easier for clients to utilize Joan's services and to be familiar with the offices. Madrid and Berne reviewed Joan's work and was able to return faulty work to Joan for corrections before it delivered the work to the clients.
Case Study Paper:
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