Discussion 7

Q2:
While the best classification for the taxpayer is situation specific, IRS stipulates that a relationship of employeeemployer exists when the party for whom services are performed (Bernard) has the right to direct or control parties
performing services (the other hair stylists).
Bernard should know principally that he has no right to control the manner and means of accomplishing the result
desired from the hair stylists.
Since tax for individuals depends on the specific arrangement between the parties involved, it is important for
Bernard to be advised on the type of arrangement he should establish with the new stylists. Since Bernard wants his
new hair stylists to be treated as independent contractors for the purpose of taxes, he should demonstrate the absence
of direction or control by establishing a few factors unequivocally.