ACCA BT · Chapter 7 · Question 3 of 10
Which of the following best distinguishes an employee from an independent contractor?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) The employer has a high degree of control over how, when and where an employee performs the work
Explanation
Tests for employment status include the degree of control, whether the person is integrated into the organisation, and mutuality of obligation. Employees are controlled by the employer, while independent contractors decide how to do the work, provide their own equipment and bear financial risk. Pay level and working hours are not decisive.
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