You are a CPA and a client has come to you for advice. Mount Rock University has a School of Business. They offer a business degree and have hired full time professors to teach there. The university is seeking to take classes online as a way to expand their brand. Right now all of the online professors will be adjunct professors. Your client is a supervisor at a university that hires professors to teach part-time as adjuncts. Most of the adjuncts will teach between 5-10 classes online each year with each class lasting 8 weeks. The adjuncts will receive a separate contract for each class and get paid $5,000 for each class. The university will enter into an agreement with various professors that teach in their school of business. Here is what the university will offer and here is what the professor is responsible for in the agreement. The university will provide outline of course material to be covered, set up certain timing requirements so that students can view the classes by set days and times, will provide the website used for the course and will register and enroll the students in the courses. The adjunct professors will use the outline the university provides to create the course, set their own work hours, will record and upload their online classes for student viewing according to their own schedule but within the time requirements set by the university, will provide a copy of their syllabus and the students’ grades at the end of the each course. The payroll supervisor wants to know if the adjunct professors will be university employees the amounts paid to them are wages or if they are independent contractors and will receive nonemployee compensation? Find the proper IRS Code sections, regulations to define for example: wages, employee, independent contractor, employment tax, withholding, FICA, FUTA, etc. Locate a case that is similar to this situation and state the outcome and try to indicate what you think the court would decide in this case. Whether yes or no please explain why you answered it that way!
You are a CPA and a client has come to you for advice. Mount Rock University has a School of Business. They offer a business degree and have hired full time professors to teach there. The university is seeking to take classes online as a way to expand their brand. Right now all of the online professors will be adjunct professors. Your client is a supervisor at a university that hires professors to teach part-time as adjuncts. Most of the adjuncts will teach between 5-10 classes online each year with each class lasting 8 weeks. The adjuncts will receive a separate contract for each class and get paid $5,000 for each class. The university will enter into an agreement with various professors that teach in their school of business. Here is what the university will offer and here is what the professor is responsible for in the agreement.
The university will provide outline of course material to be covered, set up certain timing requirements so that students can view the classes by set days and times, will provide the website used for the course and will register and enroll the students in the courses.
The adjunct professors will use the outline the university provides to create the course, set their own work hours, will record and upload their online classes for student viewing according to their own schedule but within the time requirements set by the university, will provide a copy of their syllabus and the students’ grades at the end of the each course.
- The payroll supervisor wants to know if the adjunct professors will be university employees the amounts paid to them are wages or if they are independent contractors and will receive nonemployee compensation?
- Find the proper IRS Code sections, regulations to define for example: wages, employee, independent contractor, employment tax, withholding, FICA, FUTA, etc.
- Locate a case that is similar to this situation and state the outcome and try to indicate what you think the court would decide in this case. Whether yes or no please explain why you answered it that way!
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