Ace the Certified Payroll Pro Test 2025 – Payroll Masters, Your Time to Shine!

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According to the content, why is the Type of Relationship factor important in the Common Law Rules for employee classification?

It defines payment structure

It dictates work schedule

It signals contract terms

The Type of Relationship factor in the Common Law Rules for employee classification is important because it helps to determine the terms of the contract between the worker and the employer. This factor looks at whether there is a written contract in place, the permanency of the relationship, and whether the work performed is a key aspect of the business. By considering the Type of Relationship, it becomes possible to clarify the expectations and obligations of both parties, helping to establish the nature of the working arrangement.

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It assesses legal benefits

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