Hello I am preparing a finacial letter for the following case. I need to provide

Question

Hello I am preparing a finacial letter for the following case. I need to provide information using CCH.com. I need help finding that info to answer the following questions at the end of the case.

Gilbert Lopez, one of your clients, is a local attorney who recently hired a part-time paralegal for

assistance with his growing law practice. Sheila Gonzalez, the paralegal, is a full-time college student

who hopes to attend law school and become an attorney like her grandfather. She works twenty hours

per week for Mr. Lopez, and she does not receive any benefits besides her hourly compensation

($12/hour). When she first started, Mr. Lopez trained her on the work she would be doing. Although

Mr. Lopez allows Sheila to work independently, he reviews all the documents she prepares. Mr. Lopez

provided Sheila with an office along with a computer and other supplies to do her job. Sheila does not

work for any other attorneys, and she does not advertise her services to the public.

Mr. Lopez has contacted you to see if he can classify Sheila as an independent contractor (instead of an

employee) so he can avoid paying federal and state employment taxes. Mr. Lopez’s current staff

consists of himself, his son who just passed the bar exam, and an office manager. Both his son and the

office manager are employees. The office manager is familiar with the payroll tax reporting

requirements for employees, but she does not understand when individuals should be treated as

independent contractors.

Should Mr. Lopez classify Sheila as an independent contractor or an employee? Write a letter to Mr.

Lopez with your response. In your letter, you should explain the rules for determining whether a worker

should be treated as an employee or an independent contractor. Mr. Lopez’s address is 500

Washington Street, Brownsville, Texas 78520.

Explanation / Answer

Should Mr. Lopez classify Sheila as an independent contractor or an employee?

To determining some one who is contractor or an employee following criteria must be fulfill i.e...

- Whether person's work is controlled by the organization

- Individual's opportunities is for profit or loss

- Permenancy of relationship

- at what extent individual's work is part of organization

- Individual's investment in facelities

- Amount of judgement and initiative using from open market competition

If Following criteria must be fulfill then considered as an employee in place of independent contractor.

Here, Mr Lopez has to consider Sheila as an independent contractor due to not ful filling above mention criteria.

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