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.
The Institution Policy, "Contracting for Professional Services" governs the use of an independent contractor at the Institution. Please refer to this Policy and its procedures before processing a requisition for services using an independent contractor. No Purchase Order using an independent contractor will be processed without the appropriate documentation and determination.
Learn more about:
» Institution Policy
» Test of Relationship