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Compensation or unemployment compensation insurance

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Reference no: EM131981037

You have been hired as the new assistant manager of a U.S. aircraft repair station.

The first day on the job, you learn that the business considers all of its aircraft repair personnel to be independent contractors. The mechanics work on aircraft assigned to them by the company, according to a schedule set by the company, in company shops, using company tools, under the direct supervision of company superintendents.

The company does not withhold payroll taxes or maintain workers' compensation or unemployment compensation insurance on the instructors. When you ask why, the general manager replies: "It's just simpler that way. Why? Do you see a problem with that?"

Reference no: EM131981037

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