Jennifers Auto Centre Ltd. operates as an auto body repair business. In 2012, the company hired Lorraine

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Question:

Jennifer’s Auto Centre Ltd. operates as an auto body repair business. In 2012, the company hired Lorraine Saunders to repair vehicles. The company has treated Lorraine Saunders as a self-employed contractor from 2012 to present.

Facts:

1. Lorraine Saunders was hired as a mechanic.

1. In 2012, Jennifer’s Auto Centre Ltd. & Lorraine Saunders both signed a written contract, which stated that Lorraine Saunders was a contractor.

2. Lorraine Saunders is paid $35 an hour.

3. Lorraine Saunders invoices Jennifer’s Auto Centre Ltd. for all of her mechanic work.

4. Lorraine Saunders receives no employee benefits such as vacation pay, dental or health.

5. Lorraine Saunders is not guaranteed any minimum amount of pay by Jennifer’s Auto Centre Ltd.

6. Jennifer’s Auto Centre Ltd. is open 7 days a week, 8:00 a.m. to 5:00 p.m.

7. Lorraine Saunders could work any day of the week, and she could choose her own hours of work.

8. Jennifer’s Auto Centre Ltd. had no minimum or maximum hours of work set for Lorraine Saunders.

9. Lorraine Saunders keeps a log book of her own hours worked.

10. Lorraine Saunders hired an assistant to do the accounting/billing work.

11. Lorraine Saunders has her own automotive tools.

12. Lorraine Saunders incurred operating expenses including auto supplies and liability insurance.

13. Jennifer’s Auto Centre Ltd.’s intention was that Lorraine Saunders was a self-employed contractor.

14. Lorraine Saunders has a GST number and charges Jennifer’s Auto Centre Ltd. GST

15. Lorraine Saunders keeps her own business books and records.

16. Lorraine Saunders filed her 2012 to 2017 income tax returns as a self-employed contractor.

Required:

Is Lorraine Saunders an employee of Jennifer’s Auto Centre Ltd. or is she a self-employed contractor? List all of the factors that led you to your conclusion