Employee versus Independent Contractor Policy
Administration and Finance
To aid individual departments in determining at the time of contract between an employee and an independent contractor; to ensure that any payments made by Worcester State University have been procured conforms to rules and regulations established by regulatory bodies. WSU will follow the Commonwealth’s criteria which incorporate federal guidelines; the Employment Status Form is to be used to aid in determination.
This policy further provides guidance specific to procurement contract execution for Independent Contractors only. Please see Payroll’s policy for Contract Employees.
Each department is required to determine the type of work to be performed and to determine between contract employee versus independent contractor status by completing the Employment Status Form on page 2 and 3 of this policy. It is the department’s responsibility to ensure the paperwork is completed prior to the encumbrance process and/or start of work.
Independent Contractor: Independent Contractors, or consultants, are paid through the HH/JJ/NN accounts and are considered 1099 vendors; any money received from WSU is taxable income and will be reported to the IRS if greater than $600.
Mandatory paperwork includes the Commonwealth’s Standard Contract and its Terms and Conditions as well as a completed W-9. A completed W-9 is required for any vendor to be added to the financial database.
No encumbrance is complete unless there are the following documents on file within the Procurement Office: A signed contract and its terms and conditions is signed and on file;
If you have determined that the employee is to be paid from your CC line, please refer to Payroll’s policy regarding this object code.