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Basic Question 1 of 7
A written or implied contract must exist between employee and employer. True or False?
User Contributed Comments 5
| User | Comment |
|---|---|
| kalps | An employee does not have to have a written contract, as long as the employer can direct the actions of the employee then he or she is classed as an employee, please note that a contracor is exemppt from certain actions such as getting other clients on the basis the he is independent |
| bobert | When would a person be considered an employee who is not contracted or paid? |
| stevens | being an employee does not have anything to do with money, as long as the employer can control and direct ...... |
| apiccion | @bobert, I believe it depends on the legal classification of the relationship. In my country an employer/employee relationship requires that the employer fulfill certain obligations to the employee such as deducting income tax from salary, providing due notice and/or compensation for termination, etc. A contract relationship could be a consultant/company relationship. Where the terms of the arrangement are largely determined by the written agreement between the company and the consultant. |
| mtsimone | In the US tax code, providing the tools to do the job and controlling how and when the work is performed defines and ER/EE relationship. To control only the work product (and presumably the delivery date) defines an independent contractor. As always, facts and circumstances will round this general outline out. |
I passed! I did not get a chance to tell you before the exam - but your site was excellent. I will definitely take it next year for Level II.
Tamara Schultz
Learning Outcome Statements
demonstrate the application of the Code of Ethics and Standards of Professional Conduct to situations involving issues of professional integrity
recommend practices and procedures designed to prevent violations of the Code of Ethics and Standards of Professional Conduct
identify conduct that conforms to the Code and Standards and conduct that violates the Code and Standards
CFA® 2024 Level I Curriculum, Volume 6, Module 3.