Brodie is a plumber and he works only for MC Plumbers. Brodie works at an hourly rate and does not have his own equipment or tools and instead uses those supplied by MC Plumbers. Brodie is also not personally liable should there be any problems with the work he has completed. Brodie does not himself employ anyone and he uses one room in his home for his tax records. Is Brodie likely to satisfy the personal services income rules?

Question

Quizplus · Accepted Answer

Brodie is likely to fail all four personal services income tests because he works for only one payer, uses the payer's equipment, and is not liable for the work, indicating he is more like an employee than a contractor.

Brodie Is a Plumber and He Works Only for MC