Homr Work Essay Example | Topics and Well Written Essays - 750 words

Homr Work - Essay Example where an independent contractor meets the requirements set by IRS for an employee, the company can be required to make a number of costly interventions. Firstly, according to the provisions of Fair Labor Standards Act, the employer may be required to pay wages to the workers; this may include all the employee benefits such as overtime payments, health insurance and retirement benefits among others. Secondly, the company may be required to pay all the penalties and taxes for unemployment, employees’ income taxes, social security, and Medicare to both the federal and the state governments. Thirdly, the employer is required to meet all the necessary compensations that are misclassified for any employee that is injured in the course of work. In view of these consequences, the employer should state clearly whether the workers are employees or independent contractors as well defined by the IRS Publication 937. As an advisor to Friendly Cab Company, the level of control against the workers out rightly makes them be considered as employees. The company seems to have full control over the workers, an aspect that should not be the case as provided by IRS. The workers should be allowed to choose their dress code, they should have the freewill to place advertisements, they should have the freedom to contact customers directly through their cell phones, and they should be allowed the entrepreneurial freedom such as employing others. These restrictions makes the drivers to be independent from the employer as it is should be the case for independent contractors. In addition to these, training for the workers should be guided by the principles of the business and not the needs of employer. This too adds to the level of control that the employer has upon the drivers. If this level of control is eliminated, then the drivers would operate as independent contractors. The company is obliged to change the following in order to ensure that its workers are fully considered as