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Division of Financial and Business Services

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Sunday, January 01, 2012

Updated Independent Contractor Policies and Procedures


Dear Colleague:

As part of the continued effort to protect the university from potential risk due to misclassification of independent contractors, on January 3, 2012, the administration approved and posted an updated Independent Contractor policy. The most significant change to this policy is in Section 1.1 of the Appendix. In the new policy, the Employee vs. Independent Contractor Checklist, which was optional under the old policy, has been replaced with the Work Status Evaluation form, which is now mandatory. As with the checklist, the new form is based on IRS Form SS-8.

Hiring managers are required to complete and sign the evaluation form prior to engaging an indpendendent contractor. The evaluation is then routed with the Independent Contractor Agreement form (ICA) to the department's HR Partner for review, approval and signature before submitting the paperwork with a requisition to Purchasing Services.

Further details about this process, along with the evaluation form, can be found in the Independent Contractors section of the Purchasing Services web site. Departments may begin using the evaluation immediately; however, beginning Friday, January 13, 2012, requisitions for new independent contractor engagements received by Purchasing Services without the evaluation form will be returned to the department.

Finally, due to the serious nature of this procedure and to ensure that independent contractors are being correctly classified, Business Services will conduct routine audits of independent contractors. Violations of this procedure may result in disciplinary action.

Please share this information with all project managers, principal investigators, researchers, etc., that utilize the services of independent contractors.