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Independent Contractors

Prior to engaging someone to perform work as an independent contractor, you must get approval from both the human resources and the risk management offices. Learn the difference between an independent contractor and an employee, and follow these steps to complete your request.

How do I Get Approval Prior to Engaging an Independent Contractor?

Engaging former employees and students

In addition to following this process, if you want to engage a former employee of the college as an independent contractor, you must get the approval of the Vice President of Finance and Treasurer. Work cannot be performed and payments will not be made unless this approval has been granted.

Extending approved contracts

If the services outlined in the contract are not fully completed by the agreed-upon end date and an extension beyond 90 days is required, a contract addendum must be completed to specify the revised end date. This addendum solely alters the end date and does not impact any other terms, including compensation, as outlined in the original contract. Any modifications to terms beyond the end date require initiating the contract process again. Contact HR or Risk Management to discuss extensions and obtain appropriate addendum.

Definition of an Independent Contractor

The work of an independent contractor is unlikely to be integral to ¹û½´ÊÓƵ or to be performed by staff and faculty. Typically, the work of an independent contractor involves project-based assignments, gig-for-hire arrangements, vendor services, guest lecturing, instructional services, or performances as artists and with a fixed duration and clearly defined scope to be completed in no more than 90 days.

An independent contractor is an individual who is free from direction and control, beyond the right of the service recipient, to specify the desired result. Independent contractors are customarily engaged in an “independently established business.” To qualify under the law, an “independently established business” must meet 3 out of the following 5 criteria:

1. Maintain a business location that is
   1. separate from a ¹û½´ÊÓƵ work location.
2. Bear the risk of loss, shown by factors such as
   1. entering into fixed price contracts;
   2. purchasing liability insurance.
3. Provide contracted services
   1. for two or more different persons within a 12-month period;
   2. or routinely engage in business advertising, solicitation, or other marketing efforts reasonably calculated to obtain new contracts to provide similar services.
4. Make a significant investment in the business through means such as
   1. purchasing tools or equipment necessary to provide the services;
   2. paying for licenses, certificates, or specialized training required to provide the services.
5. Have the authority to
   1. hire and fire other persons to provide assistance in performing the services.

We understand that some short duration contract work may not meet the above (i.e. guest lecturers in the classroom).

Contractor vs. Employee

Review the following list of attributes generally attributed to an "independent contractor" versus an employee.

Independent Contractor

Independent from direction & control of how work is performed by ¹û½´ÊÓƵ

• Completes tasks with little or no input from ¹û½´ÊÓƵ
• Assumes the costs associated with doing the work for ¹û½´ÊÓƵ, comes to the job with required tools, equipment, skills
• The individual obtains their own business license
• Receives only payment for service
• Pays own taxes
• Works at their own office or home
• Sets their own hours
• Does not only work for ¹û½´ÊÓƵ
• Provides services to multiple entities, has customers as a result of advertising and being known by the public as a business
• Not covered by ¹û½´ÊÓƵ’s workers’ compensation
• No rights prior to termination unless contracted
• Paid as contracted; no overtime

Employee

• Directed and controlled by ¹û½´ÊÓƵ
• Does tasks in the manner ¹û½´ÊÓƵ requests
• ¹û½´ÊÓƵ provides tools, equipment, and skills training
• The individual works under ¹û½´ÊÓƵ’s business license
• Often receives benefits beyond payment for service
• ¹û½´ÊÓƵ withholds income tax and FICA taxes
• Works at ¹û½´ÊÓƵ’s place of business
• Works the hours set by ¹û½´ÊÓƵ
• Eligible for workers’ compensation benefits
• Has some rights prior to termination
• Covered by FLSA wage and hour rules

Additional Information

The appropriate contract must be completed and signed by the authorized signer and the independent contractor.

Along with the signed contract, you must attach a completed W-9 and a sample invoice. If you are unable to have the potential independent contractor complete the W-9 form in person, please advise them to send it to you securely using File Robot. 

Once your independent contractor is approved, you must use the Etrieve Disbursement Request form to request payments. When requesting payment you are required to attach a copy of the email approval you received as well as an invoice from the independent contractor. Payments will not be made without an invoice attached.