An Independent Contractor or Consultant is an individual(s) engaged in the pursuit of an independent trade, business or profession, in which they offer their services to the public in which the employer has the right to control and direct the individual with regard to the result to be accomplished, but not the process.
Hiring an Independent Contractor/Consultant:
If the work performed is considered to be recognized as a stipend or an honorarium, Human Resources will notify the hiring department to prepare a Direct Payment Request and to forward it to the Accounts Payable Office.
Note: Two levels of authorized signatures are required to engage services of an individual contractor or consultant.
Guidelines to Use When Hiring an Independent Contractor:
- Do not establish a work schedule.
- Do not provide office space or training.
- Do not furnish tools and materials.
- Do not require the independent contractor to provide regular verbal or written reports.
- Payment for the assignment should be based generally on one fee for performing the service rather than by the hours spent on that assignment.
- The independent contractor may need to provide proof of liability coverage.
- Incidentals such as travel, meals and materials should be included in the fee, or should be stated, for example, "as not to exceed ten percent of the fee." Any other arrangements for reimbursement of travel or other expenses must be reviewed in advance with the Purchasing department and should be specified in the agreement as well, otherwise the Institute will not be liable for travel expenses.
- Do not include an independent contractor’s name in the Institute’s telephone directory or request the issuance of a regular parking permit.
- Independent contractors who earn more than $10,000 a year from a single employer and who do not perform services for any other employer are likely to be considered employees by the Internal Revenue Service.
Direct Payment Request
Independent Contractor Agreement Form
IRS Determination Questionnaire
Schedule A Statement of Work