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 hired Joan Newman Business Services, with offices in Phoenix, Flagstaff, Tucson, and Yuma, to perform contract bookkeeping services for Madrid and Berne clients who requested and needed such services. Madrid and Berne entered into an independent contractor agreement with Joan Newman Business Services. The contract stated that Joan Newman is an independent contractor and agrees that her business is an independent contractor of Madrid and Berne. After entering into the agreement, Joan worked solely on jobs assigned by Madrid and Berne and was paid a commission for the work. The commission was based upon 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 arrangement made it easier for clients to utilize Joan's services and be familiar with the offices. Madrid and Berne reviewed Joan's work and returned faulty work to her for corrections before delivering the completed work to the clients. Case Study Paper:
a. Write a 500-750 word paper using the scenario and apply what you have learned about the distinction and determination for employee vs. independent contractor.
b. Provide a written analysis of the rules for distinguishing between an employee and independent contractor.
c. As someone of faith determines whether Joan should be treated as an employee or independent contractor.
d. What are all the key factors for determining classification in the scenario above? Use the concepts that have been presented so far in the course and your own research for this case study.
e. In your conclusion, explain which classification you believe applies to Joan—employee or independent contractor.