At some point, you may need to hire an individual as an independent contractor to provide services to advance the strategic goals and programming of your department. Since these will be individuals that are not representatives/employees of Case Western Reserve University, there are a variety of steps that need to happen in order to be in compliance with the procurement policy; those steps are below.
- Obtain multiple bids if the work will be over $5,000.00.
- If you can not obtain multiple bids then complete a Sole Source Justification Form if over $5,000 and under $25,000 or a Professional Services Bid Exemption Approval Form for Services for anything above $25,000.
- Complete the Independent Contractor Google Form.
- While doing the Independent Contractor Google form, you should, in parallel, do a P.O. Requisition (steps are in a section below).
- Kelly Services will do the Independent Contractor verification and forward the verification information to Procurement Contracts.
- Upon receiving the Independent Contractor Verification and the approved P.O. Requisition, the Procurement Contract Specialist will create the contract and obtain the proper signatures.
- When the contract is completed, the P.O. Requisition will be converted into a P.O. and the independent contractor can begin the services as planned.
- After the services are completed, the invoice can be processed in accordance with the procurement invoice payment process.
Failure to follow this process will result in a delay or if submitted after work is to occur, a notice from the procurement office to which you will be required to acknowledge that you violated this policy (the first violation). Subsequently, there will be a delay in getting your vendor paid because the payment will not be processed until a signed contract is in place even if it is after the event.
The Internal Revenue Service (IRS) has very specific guidelines regarding the hiring of individuals as independent contractors.
The 14 questions below will help. Please complete all fields completely and accurately to ensure timely processing.
If you have any questions, please contact us via email at indcontractor@case.edu.
The Purchase Order Requests for the Independent Contractor form must be completed by the same person submitting the Purchase Order Request.
Gathering Information
Note: If the Independent Contractor is not in our system, you must complete the Supplier Information Form before starting this process.
1. Is the individual a current student?
- Yes - Contact the Director of Student Employment in the Office of Financial Aid and see the "Other Compensation" section.
- No - Proceed to #2.
2. Is the individual a current employee?
- Yes - Check university guidelines related to additional pay/work via appropriate paperwork and HCM.
- No - Proceed to #3.
3. Has the individual worked at CWRU within the past year?
- Yes - If student see #1, if employee see #2 and select option “Yes.”
- No - Proceed to #4.
4. Is the work provided estimated to cost more than $4,999.99?
- Yes - Proceed to #5.
- No - Proceed to #8.
5. Is the work provided estimated to cost more than $25,000?
- Yes - Complete the Professional Services Bid Exemption Approval Form for Services.
- No - Proceed to #6.
6. Have you obtained multiple bids (or obtained multiple bids)
- Yes - Proceed to #8.
- No - Proceed to #7.
7. Is there only one vendor that can complete the work?
- Yes - Complete the Sole Source Justification Form.
- No - Obtain multiple bids and continue to #8.
8. Have you created and saved a P.O. Requisition?
- Yes - Proceed to #9.
- No - Create a P.O. Requisition and save so you have a P.O. Req number to complete the Independent Contractor Google Form then continue to #9.
If you had multiple quotes those need to be attached when you create your P.O. Requisition.
9. Have you completed the Independent Contractor Google Sheet?
- Yes - Proceed to #10.
- No - See below for helpful hints for completing the form, complete the form and continue to #10.
| Question on Form | Explanation |
|---|---|
|
Does CWRU retain the right to direct and control the individual’s performance? (i.e. Does CWRU control the work on a step-by-step, day-to-day basis?) |
Are you instructing the independent contractor on how to do the work (and potentially giving a performance review), rather than asking for an end product? |
|
Does CWRU provide detailed instructions to the individual, such as when, where, and how to complete the work? (ex: where to buy supplies/services, what equipment to use, and what order to follow) |
Are you telling them how you want the end result to look like, how to do the work and where to purchase the items needed to complete the work? |
|
When evaluating the worker, does CWRU evaluate the details of the performance versus the overall results of the project? (e.g. Do you do their annual review) |
Are you giving feedback on how the independent contractor is doing each step of the work you requested? |
|
Does CWRU train the individual on how to complete the job in a particular manner or provide periodic or ongoing training regarding work procedures and methods? |
If you are giving constant feedback and guidance on how the contractor completes the job, then they would not be considered an independent contractor. |
|
Will CWRU provide the tools and equipment such as a computer, phone etc. necessary to perform the work? |
Are you giving the contractor any tools to complete the work or are they using all of their own tools and equipment? |
|
Is CWRU compensating the individual based on an hourly or weekly wage versus payment on a project itself? * |
Select yes if you are paying them hourly. Select no if you are paying the independent contractor a flat fee. |
|
Does the worker incur fixed ongoing costs regardless of whether work is being performed? (e.g. does the worker carry workers’ compensation and liability insurance under their own business? ) |
If you are unsure, contact your finance manager about the agreement and they can help determine what are the ongoing fixed costs. |
|
Is CWRU reimbursing the individual for any expenses incurred by the individual? |
Have we agreed to reimburse them for any purchases or mileage? |
|
Will the individual be available to perform other jobs in this same profession in the market while working for CWRU? |
Will the independent contractor’s time will be completely taken up by the CWRU engagement?
|
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Does The individual have the ability to make a profit or loss from the work performed? |
Do you set the hourly rate vs do they set the hourly rate? |
|
Is the method of payment hourly, weekly, monthly, as opposed to commission or by the job? |
How is the contractor compensated? |
|
Is CWRU providing the individual benefits, such as medical insurance, a retirement plan, paid vacation, sick days, and/or disability insurance? |
Contact your finance manager or HR representative Elizabeth Wilkes(elizabeth.wilkes@case.edu) to find this out. |
|
Is CWRU hiring the individual with the expectation that the relationship will continue indefinitely rather than for a specific project or period? |
Is there an end date or will they complete the work in a predetermined period of time? |
|
Has the contractor already performed the services outlined in this scope of work? (after-the-fact) |
Did the work happen before you submitted the Independent Contratractor form and the P.O. Requisition? |
|
Is the contractor an employee or former employee of CWRU? |
If yes, provide the name they are/were formerly known as during employment. |
|
Does the contractor have a family member that is currently employed with CWRU? |
If yes, provide the name of the employee and their NetID. |
10. Has Kelly Services verified the independent contractor?
- Yes - Kelly Services will forward the verification to Procurement Contracts. Proceed to #11.
- No - Kelly Services will send an email to the submitter indicating that the relationship is not independent and will ask for clarification on the questions. If still no, then a different method of payment may be necessary or the work can not be done by this individual.
11. Have you completed your saved P.O. Requisition?
- Yes - Proceed to #12.
- No - Submit your P.O. Requisition and continue to #12.
12. Positive verification given by Kelly Services
- Yes - Upon verification from Kelly Services that indicates that this is an independent contractor, the procurement contract specialist will create the contract and obtain the proper signatures. Proceed to #13.
- No - Proceed to #10.
13. Has the contract been completed?
- Yes - the P.O. The requisition will be converted into a P.O. and the independent contractor can begin the services as planned. Proceed to #14.
- No - Follow up with contracts-pds@case.edu on the status of the contract.
14. Have the services been completed?
- Yes - After the services are completed, the invoice can be processed in accordance with the procurement invoice payment process.
- No - Failure to follow this process will result in a delay or if submitted after work is to occur, a notice from the procurement office to which you will be required to acknowledge that you violated this policy (the first violation). Subsequently, there will be a delay in getting your vendor paid because the payment will not be processed until a signed contract is in place even if it is after the event.