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Write a one to two page memorandum on the following ethics issue: Scott just started a new business and needs to hire several new employees. As with most new businesses, money is tight. He is planning to classify these new employees as independent contractors so he won’t have to pay payroll taxes (social securities, Medicare, and state and federal unemployment) on them. “I’m small potatoes to the government, so I doubt that I’ll get caught,” Scott says. “If I do, I’ll just play dumb and say that I didn’t understand the distinction between an employee and an independent contractor.” Scott’s Fun Center is a client of Accounting Services, Inc. You work for Accounting Services. I’m your supervisor and have asked you to research this issue and to give me your opinion and recommendations. You can assume I have knowledge of the subject area. This is a business memo and you will not reference the instructor, student, any textbook, or assignment. Keep this memo in a business context. Make sure to list the references (web addresses) you used to form your opinion. The reference needs to be within the memo not listed at the end of the memo.
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