Project Management

The annual contract between Michelle and firestorm company .It shows that is no employer relationship (contract of service) but that of a business relationship (contract for service).

With the following factors, it evident that Michelle had a contract for service with firestorm Software Company not contract of service.

* The level of control the payer has over the worker: in this case the firestorm software company did not have control over Michelle as she works without supervision or control. She works independently, does not need anyone to oversee her. Michelle is free to work when and form whom she choose and service to different payer at the same time.

* Tool and equipment: although the firestorm software supplies Michelle with Michelle use her own small tools for the contract and she is responsible for the cost of repairs, insurance, and maintenance, and she has the right over her asset which makes it under the contract for services.

* Responsibility for investment and management: Michelle has capital investment, manage the part time workers who assist her, pay the individual and to help her perform the job and has establish a business presence. Also Michelle is responsible for making the job decisions that could affect the business either loss or profits.

* Financial risk: Michelle is financially liable if she does not fulfill the contract. Michelle also does not receive any protection or benefit from the payer. Michelle also hires helper to assist and pay them.

* Subcontracting work or hiring assistant: as Michelle is able to hire part time workers when necessary to assist her without consulting with the payer.

* Opportunity for profit : as Michelle compensated by a flat fee and she has opportunity for profit or loss based on the growth of the grass dependent on the weather condition, in this situation invoices the business for the contract amounts plus any taxes involved and she is paid through account payable ....