Question

Mindia LUZU Manpreet B Review Quiz: Chapter 3 Quiz Score: 1 of 1 pt Acco Question 3.1.1 1 of 14 Tes ses Whether or not an individual is an employee of a company or an independent contractor is Home ments Choose the correct answer A. determined by whether the company pays the individual as an employee or as an independent contractor B. easily determined by the legislation and clear rules in the Income Tax Act c. determined by the facts and circumstances that pertain to the case and court precedent (i.e. court tests) D. determined by whether the individual is organized as a business 5 on eText ter Resource Question is complete. 87.1% 18m

Answer 1

Whether or not an individual is an employee of a company or an independent contractor is :

Answer C: determined by the facts and circumstances that pertain to the case and ciurt precedent.

Reason:

A) Not correct because whether the company pays the individual as an employee or contact itself purely depends on whether he/she is an employee or an independent contractor which is to be identified first. And also, The company might be obligated to maintain registers and payroll for its employees and contractors separately.

B) Not correct because legislation and clear rules in the income tax has nothing to do with whether a company should consider an individual as an employee or independent contractor.

C) Correct because the fact of the case and court is the determining factors.

D) Not correct. Eventhough a person is not organized as a business, he can act as independent contractor. Thus there is nothing related to be organized as a business to distinguish an individual from employee and contactor.