Consider the following requirements that a company implements for paying its full-time employees and contract employees.
Contract employees who work more than 40 hours a week are paid at their hourly rate for the first 40 hours and then are paid at one-and-a-half times their hourly rate for any hours greater than 40. If contract employees work less than 40 hours per week, they are paid the hours worked at their hourly rate and an absentee report is produced. Full time employees who work for 40 hours or more are paid their regular salary. Full-time employees who work for less than 40 hours are paid their regular salary and the deficient hours are considered as their time off.
Use limited-entry decision table-based testing method to generate the test cases for testing a program that implements these requirements. Your test cases must be presented in a single table. Your solution should take into account any ‘don’t care condition entries or impossible rules.
While an “contractor” is different from a normal employee, the exact meaning of your role is not set in stone. To stop any unwanted surprises, it is vital to define the exact business relationship between you then your employer prior to start work.
We can look in three dissimilar places when replying this question. A sometimes difficult status to describe, what makes an self-governing contractor has been outlined by shared law principles, the Fair Labor Values Act, and finally the choices of some courts.
The IRS and many conditions have adopted common law values to define an independent contractor. These rules focus chiefly on the level of regulator an employer has over a service or product, sense, whether or not the employer really defines what is being done and in what way it will be talented.
Common law principles additional define independent contractor rank by method of compensation. If a being is on an employer’s payroll and obtains a steady paycheck, obviously that the person is an employee somewhat than an independent contractor, who probable receives payment in a dissimilar manner. Other thoughts when identifying somebody as an independent contractor might include:
- If the worker provisions his or her own equipment, resources and tools
- If all necessary resources are not supplied through the employer
- If the worker can be cleared at any time and can select whether or not to come to work without fear of behind employment
- If the employee control the hours of service thus indicating they are temporary as an independent contractor
- Whether the work is provisional or enduring
Again, the countryside of the work will help describe the relationship. When work is careful integral to the commercial, it is more probable that the person is an employee. On the additional hand, work that is provisional and non-integral may imply self-governing contractor status.
In an attempt to interpret supplies of the Fair Labor Values Act and discern among employee and independent contractor rank, some courts and federal activities have come up with the “economic realisms test.” It looks at the need of the worker on the commercial for which he or she works. If a person improvements a large portion of their pay from that business, chances are that being qualifies as an employee. The test also factors in such things as level of skill, integral nature of the work, intent of the gatherings and payment of social safety taxes and benefits.
Outside of the Reasonable Labor Standards Act, courts ask the next questions to determine work relationship in totaling to both an economic and an activity test:
- What is the degree of switch over work and who exercises that switch?
- What is each party’s equal of loss in the association?
- Who has paid for resources, supplies and/or gear?
- What type of skill is obligatory for work?
- Is there a grade of permanence?
- Is the worker an integral share of the commercial?
These courts too use the “right to switch” test. When the hiring gathering controls the way work is carried out and a creation is delivered, the association between the gatherings is employer/worker. If an employer does not consume authority over how a gathering accomplishes his or her work nonetheless simply give requests an summary, the relationship amid the parties is that of hiring party/independent servicer.
Full time employees:
An employer’s tax liability is strongminded by the worker’s employment rank. When a worker is an employee, employers necessity pay state and federal joblessness tax, social security tax and workers recompense/disability premiums to a State Cover Fund. When a employee is an independent servicer, the hiring party is not obligatory to make any of these expenditures.
Should employers erroneously define a worker as an self-governing contractor, they may discovery themselves liable for historical taxes including FICA and central unemployment tax. Safe harbors which allow bosses to use the independent contractor rank and avoid penalties include: prior practice of giving similar employees as independent servicers and the existence of a prior IRS audit anywhere no taxes were obligatory to be paid.
Certain factors will describe a worker as an independent servicer in every case: not relying on the business as the sole basis of income, working at his or her step as defined by an agreement, being ineligible for boss provided benefits and retaining a degree of switch and independence. While the contractor is his or this woman own boss, work stays within the meanings of oral or written contract and adheres to certain necessities. An employee, on the additional hand, relies on the business for stable income, gives up elements of switch and independence, is qualified for certain benefits and the whole thing within constraint of workplace.