Worker Classification Employee or Independent Contractor

Operational Standard/Purpose

The College engages the services of consultants and independent contractors (non-employees) on a short-term, temporary, or part-time basis. A consultant or independent contractor is not an employee and therefore not eligible for College benefits. The IRS has strict criteria for determining whether an individual is an independent contractor or an employee.

Scope/Applicability

Refer to the Employee Handbook for additional information.

Procedures

1. Hiring Manager completes a Worker Status Evaluation Form prior to retaining an individual(s) for services and submits it to the Human Resources Department.
   1. A Worker Status Evaluation Form is generally required each time an individual is to be retained. (See item 2. Below for exceptions)
   2. A Worker Status Evaluation Form may be completed for an employment type when a Department expects to be retaining multiple individuals to provide services of the same type throughout, or for a specified period within, a fiscal year. (See section III above for Worker Classification Types)
2. Human Resources evaluates the Worker Status Evaluation Form, determines the appropriate employment type (Employee or Independent Contractor), and returns the form to the department for appropriate action.
3. Hiring Manager uses one of the methods below to establish a payment method:
   1. Payment as an Employee:
      1. Establish a position (regular or temporary) with Human Resources. Refer the Position Planning and Requisitions Standard Operating Procedure (SOP) for additional information; OR
      2. Complete the Employment Authorization Form and return to the Human Resources Department (if an existing employee).
   2. Payment as an Independent Contractor:
      1. Hiring Manager completes the Independent Contractor Agreement Form and sends completed form and blank IRS W-9 Form to the Independent Contractor for signature.
      2. Independent Contractor signs agreement and IRS W-9 Form and returns to the Hiring Manager.
         Note: Payment to Nonresident Aliens - all compensation to Nonresident Aliens must be made by a check through the Accounting Department with proper documentation.

      3. Hiring Manager attaches the Worker Status Evaluation Form, Independent Contractor Agreement Form, IRS W-9 Form, and vendor invoice(s) to the Accounting Department.

      4. If applicable, Hiring Manager completes an Other Authorized Person (OAP) Form if access to ICC technology systems is necessary.

4. Controller: Reviews all documentation for compliance and forwards to Accounts Payable for processing and final payment of invoice.