Klever Komputer Repairs business has expanded and the partners have decided to hire another person, Josie, to help with the work. Josie has a contract which describes her as an independent contractor. Josie is paid on an hourly basis at a set rate and has some flexibility in regard to when she needs to work at Klever Komputer Repairs premises and when she can work from her own home. She has explained to the partners that she cannot work during school holidays because she needs to look after her children during that time and this has been allowed. To do the repairs Josie uses software supplied by the partners.

Because they believe that Josie is an independent contractor, the partners have not paid Payroll Tax for her. Nor have they insured her under the relevant South Australian workers compensation scheme. However the Commissioner for Payroll Tax disagrees that Josie is an independent contractor and has demanded the relevant payment.

Using the relevant law and cases, explain whether or not Josie is an employee AND explain the consequences for the partners if a court determines that she is an employee