Independent Contractor Determination and Payments Procedures

Independent contractor payments may be processed for qualifying individuals providing services to the University. The responsibility for determining if the individual providing the service should be classified as an independent contractor or an employee rests with the department submitting the payment request. Verification on independent contractor or employee status must be obtained from the Assistant Vice President of Human Resources.

It is critical that the University comply with State and Federal laws governing reportable/taxable income and the proper classification of employees and independent contractors. The University is subject to Federal and State audits. Misclassification of a worker as an independent contractor can result in serious financial penalties. The hiring department will be financially liable for any employment taxes, penalties, and interest, should an independent contractor they hired be determined at a later date by any auditing authority to be more correctly classified as an employee.

Review of the limitations, determining factors, and instructions provided herein must be completed by the department PRIORto hiring any individual as an independent contractor. Failure to do so could result in a request for payment to be denied should the individual hired not qualify as an independent contractor.