MODULE 3 Writing Assignment:

This is an individual assignment. Everyone will answer the same case study.

You must do your own work and use Turnitin. I will not accept any paper that has any cut and

paste material. See Syllabus.

Like all papers you’ll submit, formatting is: 1” margins all around, double spaced, Times New

Roman 12-point font.

There is a 3-page minimum…which equates to an “average” score. As always, if you want a better

score…do more than the minimum work required. I can tell when a student has done the work and

when they have waited until the last minute to throw something together. Don’t be in that latter

group.

Case Study:

Assume you are the owner of a small boutique hotel. You want to hire a worker to plan, design,

develop, build, install, and maintain a state-of-the-art information technology (IT) system which

will be the center piece of all IT operations. You decide to hire the worker as an independent

contractor and not as an employee.

You pay the worker a monthly salary and provide her with a credit card so that she can buy parts,

equipment, and necessary tools. Assume that three years after you hire the worker, you learn that

she/he has not paid any income taxes since the inception of employment. You receive a notice

from the IRS that it will be conducting an investigation and putting you on notice that you may be

responsible for unpaid taxes of over $50,000.00. To make matters worse, the worker has suddenly

disappeared and has left you without anyone with the necessary knowledge, skills, and abilities to

manage your IT system. You hear from one of your employees that the worker was threatening to

go to the IRS and complain that you worked her over 50 hours per week without paying any

overtime. It is true that the worker was on property more than 40 hours per workweek, but you

didn’t keep track of her exact hours. You’re not sure that you’ve complied with the law and you

fear that you may be in trouble.

First, what are the most important facts in the case study and why? Then, what other facts, if true,

would help your case? Be specific. Tell me all the things you should have done to protect yourself.

Then, tell me what other facts, if true, would hurt your case. What are some common mistakes

employers make when they hire independent contractors?

What is the worst thing that can happen if the IRS decides you misclassified the worker? If you

did misclassify the worker, who, other than the IRS, will be interested in your mistake? What other

penalties might you face?