Independent Contractors & Worker Classification Old Dominion University

Independent Contractor Engagement Checklist

The IRS has concluded after much litigation that the control resides with the individual, in order for the individual to be classified as an Independent Contractor. Learn what it takes to start a small business, how to know if you are ready and how to prepare yourself. Browse our blog posts, white papers, tools and guides on topics related to starting a small business. Browse our blog posts, white papers, tools and guides on topics related to marketing a small business, such as designing a website, marketing on LinkedIn and more.

Independent Contractor Engagement Checklist

In order to determine whether an individual should be hired as an independent contractor or an employee, the Business Office will work with you to apply the appropriate test below to determine a worker’s status. Independent contractor agreements must be in writing, comply with this policy and California law, and be approved by the Business Office. Generally speaking, you must withhold and pay income taxes, social security taxes and Medicare taxes as well as pay unemployment tax on wages paid to an employee. You do not generally have to withhold or pay any taxes on payments to independent contractors. You can find more information on employer tax obligations on the IRS website or this guide on setting up payroll for small businesses. We are a contingent workforce service provider helping organizations gain better access to talent through the use of independent contractors, consultants, temporary workers, freelancers and other non-payrolled employees.

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This policy sets out the criteria that define independent contractors and the required procedures to correctly classify and pay them. Opportunity for profit or loss.If an individual has an opportunity for profit or loss, it supports an independent contractor relationship. An example is an individual being paid a flat fee for a project. If the project takes less time than anticipated, the individual has made more money for less time invested, allowing him or her to reallocate time and theoretically make additional money. Expense reimbursements.Providing expense reimbursements is more indicative of an employee-employer relationship; however, we realize it is customary for guest lecturers to receive travel-related costs. If ASU reimburses an individual of certain costs, this will not invalidate his or her treatment as an independent contractor.

Professional Services

This form will automatically route based on the email addresses provided. Each identified person on the ICC will be responsible for reviewing and completing a different component of the form, and additional attachments can be added to further support or explain the facts and circumstances. If approved, the approved checklist will be emailed to all recipients that were identified on the form. This approved checklist should be attached to any requisitions related to the approved services prior to submission. For an independent contractor status to be supported, the individual must be able to seek out other business opportunities while providing work for ASU.

Independent contractors have freedom of choice in vendor relationships and sub-contractors. What tools or equipment to use.Insisting someone use ASU equipment or labs may indicate an employee-employer relationship. Training.Detailed training may indicate an employee-employer relationship.

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