Andy Jones works as an engineer for ABC construction Company and is paid a basic monthly salary and additional bonuses for completed projects. Andy services are attached to specific construction projects depending on availability. On average Andy spends 4 hours in a day inspecting projects and spends the rest working in his independent civil engineering firm. Andy normally receives building plans from the company’s manager before taking on any projects. All the junior technicians working under the supervision of Andy are employees of the company. Andy receives a basic salary and bonuses depending on the number of projects. To determine whether Andy is an employee or a contractor, we use the 20 –Factor Test.
Andy’s receives instructions from the manager on the projects to be handled and is later on expected to manage the projects based on her engineering profession standards. Andy receives no training but is expected to file a progress report on projects with the manager. Andy’s performance significantly determines the success of the project in that it directly influences the quality of the products. Andy is required to do the job personally and is not allowed to employ assistants or technicians. And has been working with the company for the last 5 years and continues to work as one of the tope company’s engineers in multiple projects. Although Andy has an office within the premises of the company’s headquarters, she is not required to be in office or in the project sites for a specified number of hours but is left to act independently allocating the required time to the projects.
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Test |
Answer |
Identity |
|
|
1 |
Does the employee follow instruction, or is she supervised? | No | Independent contractor |
|
2 |
Does the employee receive training from the employer? | No | Independent contractor |
|
3 |
Is the performance of the employer integrated with the employee’s services? | Yes | Employee |
|
4 |
Are the services rendered by the employee personally? | Yes | Employee |
|
5 |
Authority to hire, supervise and pay assistants? | No | Employee |
|
6 |
Continuing working relationship? | Yes | Employee |
|
7 |
Full time work required? | No | Independent contractor |
|
8 |
Is the employee stationed at the place of work? | No | Independent contractor |
|
9 |
Any work schedule followed? | No | Independent contractor |
|
10 |
Are the hours of work determined by the employer | No | Independent contractor |
|
11 |
Reporting obligation? | Yes | Employee |
|
12 |
Monthly salary? | Yes | Employee |
|
13 |
Are the tools and materials for work provided by the employer? | Yes | Employee |
|
14 |
Payment of business and travel expenses? | Yes | Employee |
|
15 |
Has the worker invested in the company? | No | Employee |
|
16 |
Does the employee risk of loss due to poor performance of the company? | No | Employee |
|
17 |
Working for more than 1 company? | Yes | Independent contractor |
|
18 |
Are the services provided to the employer available to the general public? | Yes | Independent contractor |
|
19 |
Can the employer terminate the work relation? | Yes | Employee |
|
20 |
Can the employee terminate the work relation without being liable for damages? | Yes | Employee |
In conclusion, the 20-factor test indicates that Andy is an employee of ABC Company.
