Open AccessAn Empirical Assist In Resolving The Classification Dilemma Of Workers As Either Employees Or Independent Contractors
Author(s) -
Teresa J. Webb,
Ted D. Englebrecht,
Timothy O. Bisping,
Steven A. Hanke
Publication year - 2011
Publication title -
journal of applied business research
Language(s) - English
Resource type - Journals
eISSN - 2157-8834
pISSN - 0892-7626
DOI - 10.19030/jabr.v24i2.1353
Subject(s) - span (engineering) , style (visual arts) , life span , dilemma , psychology , medicine , gerontology , mathematics , history , engineering , structural engineering , geometry , archaeology
The classification of workers as "employees" or "independent contractors" is important because the employer's legal responsibilities vary depending upon the nature of the working relationship. For federal tax purposes, the term "employee" is not clearly defined. However, the model developed in this study is able to correctly classify 96.6 percent of the judicial decisions (1980-2005) involving the status of a worker as either an employee or independent contractor. Also, t he model demonstrates stability over time and between judicial venues.