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Scenario 1: Imagine you own a small business and after a year in business you have decided to hire a bookkeeper for 2 hours every Friday to bring your books up to date and to process payroll. You want the work performed at your business using the business’s computer and software. The bookkeeper’s work is very specific and you are paying $25 per hour.
Scenario 2: Imagine you start managing your family’s business and after taking the job you realize the business hasn’t had its bank statements reconciled for a year. None of the checks have been recorded in the checkbook or in the company’s bookkeeping software. You hire a bookkeeper to help you get things in order. They have to put all canceled checks in order, enter the missing checks in the bookkeeping software, and reconcile the bank statements using the company’s bookkeeping software. This is a one-time project that you estimate will require 2 weeks of work. You are paying $25 per hour.
Scenario 3: Imagine as the new manager of the family business you also decided to institute a new policy for handling expense reimbursements to employees. You hire an accountant to prepare the procedure manual for the finance department and prepare a new section of the Employee Handbook. The accountant must meet with company employees to gain an understanding of the new policy. The accountant will be paid a flat fee for the two tasks.
Analyze the scenarios above using a minimum of 1,050 words and include the following:

Compare and contrast the three scenarios in a table including:
Whether the person hired in each scenario is an employee or independent contractor.
The reasons why the person hired in each scenario is an employee or independent contractor.
Explain the pros and cons of hiring someone as an employee versus an independent contractor.
Discuss what, if any, legal liabilities and responsibilities a business has for its employees as compared to independent contractors.
Discuss the consequences a business might face for misclassifying an employee.

Cite at least 4 scholarly references.
Format your paper consistent with APA guidelines.
Click the Assignment Files tab to submit your assignment as a Microsoft® Word document.

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Discussion expectations defined: You will be asked to select a quote from the reading to incorporate in your first discussion post. This means that you will also include an in-text citation and reference for each quote (Author, year, p. X). Your post should be a substantial response to this week’s question in order to receive full credit.

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