The employee-employer relationship

Payroll subject

The Employee-Employer Relationship

Scenario

Tina has an annual contract with Johnson Insurance Brokers to provide property maintenance services; this includes lawn care, snow removal and parking lot maintenance. Tina spends, on average, 20 hours per week working at the company’s premises and is paid a flat amount monthly. She hires part-time workers, when necessary, to assist her. Tina does not have any other clients.

Tina uses her own small tools; however the company supplies and maintains a riding lawn mower and a snow plow for her use. Her contact at the company is Fred Sinclair, the Facilities Manager, who meets with her every Monday to discuss the work to be done that week. Fred approves Tina’s monthly invoices and submits them to Accounts Payable.

Does Tina have a contract of service or a contract for service with Johnson Insurance Brokers? As the company’s Payroll Supervisor, explain to Fred the process and factors you used to make your decision.

Prepare your response (350 – 500 words) using your name, correct spelling, grammar and punctuation. You will be penalized if you are excessively over or under the suggested word count. Your response to this question must be stated in your own words and should be based on the course material, your experiences, knowledge gained through the course and at least one external government resource.

Any responses taken directly from the external government resource or course material will not be accepted. Information referenced from the government resource(s) and the course material must be cited. For example:

if you are referencing the Canada Revenue Agency’s Employers’ Guide – Payroll Deductions and Remittances – T4001, state the URL where the information can be found, http://www.cra-arc.gc.ca/E/pub/tg/t4001/README.htm... and the page number, if applicable
if you are referencing the course material, state the course name, chapter and page number where the information can be found (for example, PCL, 1-1)

answer preview

Tina has a contract for service with Johnston Insurance Brokers. A contract for service is a contract between a contractor and a client or agency. In other words, contract for service can be defined as a contract between a contractor’s limited company and client or agency. A contract for service is limited to business to business contract only. Just like any other contract, in a contract for service, the parties involved have particular rights as well as responsibilities. However, these rights and responsibilities differ according to the kind of contract parties enter. It is important to note that, contractors should ensure that they are fully aware of their rights together with responsibilities before they enter into a contract for service ( Melone, 2017)………………….words 467