independent contractor or casual employee?
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Independent Contractor or Casual Employee?. How to Complete the Employee/Independent Contractor Classification Checklist (EICCC). Independent Contractor or Casual Employee?. Office of Accounting Cynthia Roberts, CPA Finance Manager Travel Independent Contractors Scholarships Taxes - PowerPoint PPT PresentationTRANSCRIPT
Independent Contractor
or Casual Employee?
How to Complete the Employee/Independent Contractor Classification Checklist (EICCC)
Independent Contractor or Casual Employee?Office of Accounting
Cynthia Roberts, CPAFinance Manager • Travel• Independent Contractors• Scholarships• Taxes
Lori MonsonSenior Administrative Associate• Independent Contractors
Worker Classification• Common Law Test
• Right to Direct or Control
• 20 Questions
• Behavioral control, financial risk, relationship of parties
Worker Classification• Behavioral Control
• Students• Supervision
• Financial Risk• Usually not an issue with the university• Flat rate vs. hourly rate
• Relationship of parties• Prior employment• Exclusive relationship (sole customer)
Independent Contractor/Employee Classification Checklist• Who should complete the checklist?• When should the checklist be used?• When is a signature required in the
Terms & Conditions for Federally Sponsored Projects box? Who signs in this box? When should the signature be obtained?
Completing the Checklist, Part I
Relationship with The UniversityPart I of the checklist should always be completed.• Does this individual currently work for the
university as an employee?• Has an offer of employment been extended to
this individual?• Did this individual work as an employee of the
university during the 12 months prior to the date of this contract?
Completing the Checklist, Part I
If the answer to any of the questions in Part I is “Yes,” STOP! The individual is classified as an employee.
If you answered no to all of the questions, you must proceed to Part II.
Completing the Checklist, Part II
Complete only• Section A or B or C
• But not more than one, based on the nature of the services performed.
Part II: Section A, Teacher / Lecturer / Instructor
1. Is the individual an invited guest lecturer (includes seminar, colloquium, class, etc.)?
2. Has the individual been at the institution in this capacity fewer than four times in the past 12 months?
If the answer to both questions is “Yes,” STOP. Treat the individual as an independent contractor.If the service is teaching or lecturing, and the answer to question 2 is “No,” proceed to Question 3.
Part II: Section A (cont.)3. Is the individual teaching in a course for
which students will receive credit toward a university degree?
If the answer is “Yes,” STOP. The individual is classified as an employee.
If the answer is “No,” proceed to Question 4.
Part II: Section A (cont.)4. Has the individual provided the same or
similar services as an ongoing business to other unrelated entities in the past 12 months?
5. Does the university have any control over course materials that are used by the individual?
If the answer to Question 4 is “Yes” and the answer to Question 5 is “No,” treat the individual as an independent contractor. Otherwise, treat the individual as an employee.
Part II: Section B, Researcher1. Will the individual perform research under the
supervision of a university professor or employee?
If the answer to Question 1 is “Yes,” treat the individual as an employee.
Part II: Section B (cont.)2. Will the individual serve in an advisory or
consulting (collaborative) capacity with a university professor or employee?
If the answer to Question 2 is “Yes,” treat the individual as an independent contractor.
Part II: Section C, Individuals not covered Under A or B1. Has the individual provided the same or
similar services to other unrelated entities or to the general public as a trade or business during the last 12 months?
Generally, independent contractors will provide services to the general public and will have more than one customer.
Part II: Section C (cont.)2. Will the department provide the
individual with specific instructions regarding performance of the required work rather than rely on the individual’s expertise?
Part II: Section C (cont.)3. Can the university set the number of
hours and/or days of the week that the individual is required to work, as opposed to allowing the individual to set his/her own work schedule?
If the answer to Question 2 or 3 is “Yes,” treat the individual as an employee.
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For more information, contact:
User ServicesFinancial Information Systems