A contractor pays a worker $2,400 per month and provides all tools, sets the work schedule, and supervises the work daily. The worker should most likely be classified as:
Correct Answer
B) Employee
The high degree of control (providing tools, setting schedule, daily supervision) and regular payment indicate an employment relationship rather than independent contractor status.
Why This Is the Correct Answer
The worker meets all the key criteria for employee classification under IRS and labor law guidelines. The contractor exercises significant control by providing all tools, setting the work schedule, and supervising daily activities. The regular monthly payment of $2,400 establishes a consistent employer-employee financial relationship. This level of control and financial arrangement clearly indicates an employment relationship rather than an independent contractor arrangement.
Why the Other Options Are Wrong
Option A: Independent contractor
Independent contractors typically provide their own tools, set their own schedules, and work with minimal supervision. The high degree of control described (daily supervision, schedule setting, tool provision) is inconsistent with independent contractor status.
Option C: Temporary worker
While the worker might be temporary in duration, the classification question focuses on the employment relationship structure, not the length of employment. The control factors indicate a direct employee relationship regardless of whether it's temporary or permanent.
Option D: Consultant
Consultants typically work independently, provide specialized expertise, use their own tools and methods, and have minimal supervision. The daily supervision and tool provision described are inconsistent with a consulting relationship.
Memory Technique
Use 'TIPS' - Tools provided, Instructions given, Payment regular, Supervision daily = Employee status
Reference Hint
Florida Building Code Chapter 1, Section 105 - Permits; IRS Publication 15 (Circular E) for worker classification guidelines
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