Independent Contractors

Independent Contractor/Employee Status Evaluation


All parties who perform services for the University must be classified as an employee or independent contractor in accordance with federal and state regulations.  Failure to properly classify individuals may result in the department engaging the individual being liable for any unpaid taxes, fines and penalties assessed by Federal and State agencies.


The procurement of services requires an evaluation of whether an individual should be classified as an employee or an an independent contractor.  This evaluation and classification must be performed before engaging the individual to perform services so that University can comply with tax withholding and reporting responsibilities, and so payment to the individual will not be delayed. The evaluation must be based upon IRS and state related standards, and approved by Employee Empowerment.

Individuals who perform services for the University are presumed to be employees of the University unless the relationship satisfies IRS and state standards for independent contractors.  The primary difference in these two business relationships is that the employees are paid through payroll and income and employment taxes must be withheld, while an independent contractor is engaged when services needed are urgent, special, temporary, or highly technical and cannot be performed economically or satisfied by University staff members within the scope of their normal responsibilities.


Status Evaluation Procedure

  1. Use the Status Evaluation Tool to determine if a Status Evaluation Form is required.
  2. A Status Evaluation Form is required each time an individual is engaged and must be completed and submitted to Employee Empowerment 30 days in advance of the start date.  
  3. Employee Empowerment will review and appropriately classify the individual within 5 business days of receiving a completed Status Evaluation Form.
  4. Requestor must take further action based upon Employee Empowerment determination of status.

Independent Contractor Payment Procedure

  1. Obtain a contractor agreement from Finance
  2. Obtain W9, insurance information and Invoice from contractor
  3. Complete Finance check request form and receive appropriate budget approvals
  4. Submit the completed check request form to  Finance

Hiring Procedure

  1. Follow university hiring process. Contact Employee Empowerment for Further Instruction