Max Ltd., an Information Technology firm, has started a freeze in hiring. However, the company wants to engage the services of a specific IT Consultant, Susan Lee, to manage the completion of a specific project over a three-year period.

Following negotiations between the parties, a consulting contract was signed. Ms. Lee will be paid $4,000 per month to work at least 14 days per month (i.e., between three and four days per week with flexible hours) for a three-year period.

The agreement stipulates that Max Ltd. will provide Ms. Lee with an office and pay for underground parking at Max Ltd. and Ms. Lee also have an option to work from home office.

Ms. Lee has other Information Technology work and she estimates that she derives approximately 40% of her consulting income from other sources.

REQUIRED: Express your opinion as to whether Ms. Lee is considered an employee or an independent contractor.