Question

A new client indicates they are self-employed, are paid by one company but claim to work as a contractor. Services are provided from the client’s home office and the client wants to claim the benefits that accrue from that classification.

What questions would you ask to clarify the client’s employment status? Discuss in 150–180 words

Answer 1

The following questions can be asked to clarify the employment status:

1. Whether the client is the proprietor of a business that is unincorporated?
2. Whether the client works as an Independent Contractor?
3. The terms and conditions of providing services to others are set by whom?
4. How is the payment made to them?
5. Whose money is employed to carry out a particular job?
6. The financial statements and tax liability can be reviewed.
7. Who takes the responsibility of the success and failure of business?
8. How many customers are handled at one time?
9. Can others be hired to complete the work?
10. If the status in which you work is that of a Sole proprietor, LLC, Independent contractor, Member of partnership?
11. Whether the work is carried out on a part-time basis or a full-time basis.
12. Who is responsible for payment of taxes, or is there any tax withheld?