Kim is an independent contractor who cleans a school - HSC - SSCE Business Studies - Question 3 - 2014 - Paper 1
Question 3
Kim is an independent contractor who cleans a school.
Which of the following statements is true regarding Kim’s employment?
(A) She is entitled to four weeks annual ... show full transcript
Worked Solution & Example Answer:Kim is an independent contractor who cleans a school - HSC - SSCE Business Studies - Question 3 - 2014 - Paper 1
Step 1
Determine Which Statement is True Regarding Kim’s Employment
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Answer
In this scenario, Kim is classified as an independent contractor. Among the given options:
(A) She is entitled to four weeks annual leave. As an independent contractor, Kim typically does not receive annual leave.
(B) Her employment is subject to award conditions. Independent contractors are generally not subject to the same awards or conditions as employees.
(C) She is responsible for paying her own income tax. This is true; independent contractors must manage their own taxes and are not typically subject to withholding by an employer.
(D) She is entitled to maternity leave provided by the school. Independent contractors do not have the same entitlements as employees, including maternity leave.
Thus, the correct answer is (C) She is responsible for paying her own income tax.