Question

Yeager Company pays John Kerr a salary as an employee and also fees for work he does as an independent contractor. Does this violate IRS rules? Why or why not?

Answer 1

yes

its either / or

depends on whether the person is really a regular worker or a freelancer in the eyes of the company

regular worker's taxes from pay is responsibility of the employee AND employer

freelancer's taxes from pay is the responsibility of the employee ONLY

so the company has to decide whether the person is a regular worker OR an independent contractor

employee & contractor employment rights are different too