Employer-Employee Relationship DocumentThe United States government has guidelines that dictate how companies interact with their employees to ensure that all parties are fairly covered with regards to employment rights. When Mary is fired from her job as a programmer at the Little Lamb Company and subsequently not rehired when a job becomes available, some questions arise. This article will address and answer questions about Mary's status as an independent contractor or employee, the employer/employee relationship that changes over time, and legal release under the at-will employment doctrine. INDEPENDENT CONTRACTOR/EMPLOYEE Status of Mary as an independent contractor versus employee can always be a sensitive point due to the nature of the type of work being performed. According to Supplemental Employer Tax Guidance provided by the IRS, “An employer generally must withhold federal income taxes, withhold and pay Social Security and Medicare taxes, and pay unemployment tax on wages paid to an employee. An employer generally is not required to withhold or pay any tax on payments to independent contractors (Treasury Department, 2008).” The Employment Law for Business textbook defines independent contractors as: "A person who contracts with a principal to perform a task according to the principal's methods and who is not under the control of the principal as to the physical details of the work ( Bennett-Alexander and Hartman, 2007).” While both of these definitions sound well and good, it can be very difficult to determine whether or not a person in this case Mary is a dependent, so the IRS has asked a series of questions that separate the two. The IRS 20 Factor Test uses the term control, “behavioral control, financial control, and the type of relationship between the parties” to determine the status of the work (Department of the Treasury, 2008). One of the key elements of the test is the use of contracts for certain work to be performed is a great example because as a programmer she is hired under contract to complete a project. At the beginning of Mary's employment it is a clear and standard case of self-employment. The new project is introduced into the equation really to become interesting. CHANGE IN EMPLOYER RELATIONSHIP When the project is close to completion, a new need arises for Mary's services to continue with the company to complete the new project..