Is aaron an independent contractor or an employee

Assignment Help Financial Accounting

Reference no: EM131204828

Aaron, a resident of Minnesota, had been a driver for Green Delivery Service for the past six years. For this purpose, he leases a truck from Green, and his compensation is based on a percentage of the income resulting from his pickup and delivery services. Green allows its drivers to choose their 10-hour shifts and does not exercise any control on how these service are carried out (e.g., the route to be taken or the order in which parcels are delivered or picked up). Under Green’s operating agreement with its drivers, Green can terminate the arrangement after 30 days’ notice. In practice, however, Green allows its truckers to quit immediately without giving advance notice. The agreement also labels the drivers as independent contractors. Green maintains no health or retirement plans for its drivers, and each year it reports their income by issuing Forms 1099-MISC (and not forms W-2). Green requires its drivers to maintain a commercial driver’s license and be in good standing with the state highway law enforcement division. Is Aaron an independent contractor or an employee?

Reference no: EM131204828

Questions Cloud

Contemplating an advertising campaign : Pool Company's variable expenses are 37% of sales. Pool is contemplating an advertising campaign that will cost $20,100. If sales increase by $80,100, the company's net operating income should increase by:

Calculate ending inventory-COMS-Gross Profit based on FIFO : The following transactions took place during the month of March: March 1-Beginnng Inventory 20 units at $5=100. A physical inventory count on March 31 revealed 22 units were left on hand. Calculate ending inventory, COMS, and Gross Profit based on FI..

Difference between contribution margin and gross margin : Describe the difference between contribution margin and gross margin, and illustrate the difference with an example. From a management perspective, indicate which margin figure would be most useful for product pricing and which would be most useful f..

Compare the assignment of under-over applied overhead costs : Compare the assignment of under/over applied overhead costs at year end utilizing the allocation-rate approach, the proration approach, and the write-off approach. Create a numerical example to illustrate the proper handling of each case.

Is aaron an independent contractor or an employee : Aaron, a resident of Minnesota, had been a driver for Green Delivery Service for the past six years. For this purpose, he leases a truck from Green, and his compensation is based on a percentage of the income resulting from his pickup and delivery se..

Explain why overhead costs-support department costs : Why must costs be allocated? Explain why overhead costs, support department costs, or joint costs must be allocated to products, and give an example of a company that might allocate those costs.

Dividing partnership income : Dividing Partnership Income. Determine their participation in the year's net income of $324,000 under each of the following independent assumptions: No agreement concerning division of net income.

Calculate the magnitude of operating leverage : The following income statement was drawn from the records of Butler Company, a merchandising firm: BUTLER COMPANY Income Statement For the Year Ended December 31, 2014 Sales revenue (5,000 units × $162) $ 810,000. Reconstruct the income statement usi..

When travel combined business and pleasures : When travel combined business and pleasures:

User Account

All Pages