APC, Inc is a venture capital firm that invests in new businesses to help them grow. Wyatt Newark owns and serves as a chef at Earp's, a restaurant with a Western design that he operates as a sole proprietorship. Newark has five employees at his restaurant-three servers, another chef, and a janitor. New mark has had great success and hopes to expand or franchise the business. Newark, who has not even retained an attorney for his small business, has approached APC for an investment. Using the information presented in the chapter, answer the following questions. What is the difference between employee status and independent-contractor status? Which form of employment relationship would be more advantageous to Newark? Why should employers be cautious when designating workers as independent contractors?
DEBATE THIS: The new penalty tax on employers that do not provide health insurance for their employees should apply to all employers, not just those with fifty or more employees.