Question

Determination of Worker Status for Purposes of Federal Employment Taxes.

In the movie "Pretty Woman" 1s Julia Roberts an employee or independent
contractor? Discuss.

Answer 1

She is an independent contractor in the movie.

She is a natural person, provides service like escort for the actor, with a specific term of service and money; the service is for seven days at $3,000. All these are the indicators of an independent contractor.

Moreover the actor has no liability and doesn’t withhold income taxes for such person, which is also an indication of independent contractor; if the person is an employee, such withholding becomes necessary.