20-Factor Test: Explain the principal-agent relationship

| February 10, 2014

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20-Factor Test”
Objectives
Explain the principal-agent relationship
Categorize the rights, duties, and liabilities of the principal and the agent in an agency relationship
Assignment Overview
In this web research and writing assignment, you will apply the “employee versus independent contractor” status determination, commonly referred to as the “20-Factor Test,” to a hypothetical scenario.
Deliverables
A one- to two-page (250- to 500-word) paper
Step 1 Research the “20-Factor Test.”
Through Internet research, review the “20-Factor Test” that courts and the Internal Revenue Service (IRS) use in determining whether an individual is an employee or an independent contractor.
Step 2 Write a paper applying the “20-Factor Test” to a scenario.
In a one- to two-page (250- to 500-word) paper, describe a hypothetical scenario involving the question of whether an individual is an employee or an independent contractor and issue a determination (based on the hypothetical you have created, and applying the “20-Factor Test” to your hypothetical) as to whether the person is an employee or an independent contractor.
Step 3 Save and submit your assignment.
When you have completed the assignment, save a copy for yourself in an easily accessible place and submit a copy to your instructor using the dropbox.
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