Analyze the contract of service or for service


SCENARIO:

Hannah has an annual contract with Stenbach Service Centre to provide property maintenance services, this includes lawn care, snow removal and parking lot maintenance. Hannah spends, on average, 25 hours per week working at the company's premises and is paid a flat amount monthly. She hires part-time workers, when necessary, to assist her. Hannah does not have any other clients.

Hannah uses her own small tools; however the company supplies and maintains a riding lawn mower and a snow plow for her use. Her contact at the company is Rick Moore, the Facilities Manager, who meets with her every Monday to discuss the work to be done that week. Rick approves Hannah's monthly invoices and submits them to Accounts Payable.

Does Hannah have a contract of service or for service with Stenbach Service Centre? As the company Payroll Supervisor, explain to Rick the process and factors you used to make your decision.

Prepare your response (350 to 500 words) using correct spelling, grammar and punctuation. Your response to this question should be based on the course material and at least one external government resource (with the link where the information can be found).

 

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Accounting Standards: Analyze the contract of service or for service
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