Independent Contractor

1. Independent Contractor Office of Human Resources 12/16/09

2. Independent Contractor • Designation of Independent Contractor for an outside service provider is governed by the Internal Revenue code and common law. • Significant tax penalties for incorrect classification. • Three conditions that must be fulfilled before engaging an outside service provider: • Determination of status • Procurement of services • Risk management and insurance

3. Independent Contractor Determination of status: • This process is not required if: • Service Provider is incorporated, a professional firm, or a partnership • The payment is for the following: • Royalty or permission fee • Prize or award (non-employee only) • Human subject fee • One-time lecture fee (non-employee only) • Service Provider has existing vendor number assigned by accounts payable • The amount of contract requires bidding

4. Independent Contractor Determination of status: • This process is required if the Service Provider does not fall within one of the prior categories: • Obtain and complete the independent contractor status – Form A and submit to Human Resources • Located on the HR Forms website: http://www.utoledo.edu/depts/hr/forms/employment.html • Contact Human Resources for assistance.

5. Independent Contractor Procurement of Services • Follow established Univ. purchasing procedures for contracted services. Risk Management & Insurance If purchase requisition is not necessary: • Contact Risk Mgmt to determine what evidence of liability coverage is needed.

6. Independent Contractor Process: • Complete the Independent Contractor Agreement and submit to Legal for review • Obtain signatures on the Independent Contractor Agreement • Submit the following with payment request to Accounts Payable: • Executed contract • Independent Contractor approval from HR for new vendor • Completed substitute form W-9

8. Performance ReviewsUpdate