Why it is important to define the status of employees correctly? How the  IRS 20-factor analysis test is used to define the status of an employee?

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Why it is important to define the status of employees correctly? How the  IRS 20-factor analysis test is used to define the status of an employee?

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Employee status matters a lot for most of the individuals in understanding their rights and the employers for understanding their obligations to those individuals.

The perfect identification and understanding of an individual's status could influence the parties approach to the whole working relationship.

One of the areas where this could end up as a big issue is as a result of acquisitions or business sales.

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