Based on the described arrangement, what is the carpenter's employment status and total gross pay for the project?

Based on the described arrangement, what is the carpenter's employment status and total gross pay for the project?

• A. Independent contractor; $8,000
• B. Employee; $10,560
• C. Employee; $7,680
• D. Independent contractor; $12,000

Answer: (B)

When deciding if someone is an employee or an independent contractor, the key signal is who controls how the work is done. If the employer directs the schedule, assigns the site, provides tools and materials, and pays through payroll with tax withholdings, the worker is an employee. In the described arrangement, the carpenter works on the project under supervision, uses the employer’s equipment, follows the employer’s instructions, and is paid as wages rather than invoicing for services. That pattern points to employee status rather than independent contractor. The total gross pay is the wage earned for the hours worked, before withholdings. If the project runs 12 weeks at 40 hours per week at a rate of $22 per hour, the calculation is 12 × 40 × 22 = 10,560. So the carpenter is an employee, and the total gross pay for the project is 10,560.

When deciding if someone is an employee or an independent contractor, the key signal is who controls how the work is done. If the employer directs the schedule, assigns the site, provides tools and materials, and pays through payroll with tax withholdings, the worker is an employee. In the described arrangement, the carpenter works on the project under supervision, uses the employer’s equipment, follows the employer’s instructions, and is paid as wages rather than invoicing for services. That pattern points to employee status rather than independent contractor.

The total gross pay is the wage earned for the hours worked, before withholdings. If the project runs 12 weeks at 40 hours per week at a rate of $22 per hour, the calculation is 12 × 40 × 22 = 10,560. So the carpenter is an employee, and the total gross pay for the project is 10,560.