From time to time, it may be necessary to contract for professional services from a source other than an enterprise registered as a corporation. In all such cases, the institution will comply with Federal and State regulations and guidelines concerning the classification of an individual as an employee or an independent contractor.
An independent contractor is defined as a person engaged in an independently established business - a person engaged in an occupation that contracts work according to their own methods, without being subject to control of the employer except for results. The basic tenet of an independent contractor relationship is that the contractor has an independent occupation and is only responsible for the finished product.
Whether someone providing a service is an employee or an independent contractor is critical. It becomes important for determining benefits and pension eligibility, the worker's compensation coverage, wages and hour laws, unemployment compensation and personal tax liability. Each situation must be analyzed independently as the determination of the status may change with each circumstance.
No purchase order using an independent contractor will be processed without the appropriate documentation and determination.
To Hire a Person or Company
Complete a Independent Contractor / Statement of Work Form: For more information on accessing the system, completing this form, or organizational analysis and advice related to University administration or management please contact email@example.com. As with all procurements of goods or services, the vendor/supplier needs to provide a written proposal and price quotation, dated, on supplier letterhead. See the Statement of Work Guidelines for more information on how to create a statement of work.
Payment Schedule: Fees charged must be clearly linked to scheduled deliverables. If there is a desire for periodic invoicing and payments (not a flat fee at the end) or progress milestone payments, then those progress milestones need to be identified along with their timetable and associated costs. They cannot be paid on an hourly basis that is paid monthly. Hourly rates should be used by the supplier only as a means of determining a fee.