According to the twenty factor analysis by the IRS it is evident that T. J. Moody was more of an independent contractor than an employee of Best Accounting, Inc. This analysis provides at least eleven factors that demonstrate he is an independent contractor and not an employee. The behavioral control factors include the instruction, training, set hours of work, hiring assistants, work done on premises and full time required all indicate that T. J. was more of an independent worker. The financial control factors included payment method, expenses, tools and materials, investment and profit or loss opportunity show that the hired help was an independent contractor whose sole role was to assist the organization in completing the extra work acquired over the end of 2012 financial year (BizFilings, 2014). The factorial relationship of the parties also showed that T. J. Moody was an independent contractor and not an employee. These included the fact that he did not have the right to quit at any time, the organization could not fire him at any time, his services were available to general public and he could work for more than one person at a time.
There is a major difference as to whether Moody was an employee or independent contractor to Best Accounting. This is because Moody is able to offer his services to other persons in the general public. Additionally, he could undertake numerous contracts at the same time and delegate the excessive services to other workers if he had any. The Best Accounting Inc had little or no control over how Moody conducts his work as opposed to if he was an employee (BizFilings, 2014). As an employee, Moody would have to be present at the company’s premises every day that he would be working on their tasks. Further, as an independent contractor the organization has limited ability to fire him at will.
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In the case of Moody, being an independent contractor as opposed to an employee of the company has significant difference. The first is the financial control of the earnings made from each tax return. It is identified that the organization would pay between $150 and $500 per tax return depending of the complexity of the task. This means that his services would at times be undervalued as opposed to that of an employee who is given a clear hourly rate of pay (BizFilings, 2014). However, he is bound to profit when some of the tasks are more complex than others benefiting as opposed to an employee.
References
BizFilings (2014) Is Your Worker an Employee or an Independent Contractor for Payroll Tax Purposes? BizFilings, Online. Retrieved from http://www.bizfilings.com/toolkit/sbg/tax-info/payroll-taxes/employee-or-independent-contractor-payroll-tax.aspx
