Despite federal employment legislation, there are still violations that occur as a result of exemptions and exclusions. For example, contract employees are not normally entitled to any benefits, which can be a huge cost-saving mechanism for companies. Contract employees also do not have many of the legal protections that are in place to protect traditional employees. The Internal Revenue Service has guidelines to determine whether an individual is a contract employee.
*Describe the Internal Revenue Service questions that help to determine whether an individual is an employee or a contractor. How effective/ineffective do you think these questions are? Justify your response.
