Independent Contractor

  • employee vs contractor

Independent Contractor

Independent Contractor

Determining Worker Status: Employee or Independent Contractor?

When hiring workers, it is important for tax purposes to correctly categorize the position as an employee or an independent contractor. Classification of workers is determined by three main factors including: behavioral, relationship of parties, and financial controls, which are detailed below.

Employee Factors

Behavioral controls: If Rowan directs or controls the work to be done, how to do the work, what to do, when to do the work, or have the right to direct or control the work. For example, control is when an employer sets the work schedule, the hours, trains the person, and sets the location and the tasks to be done.

Relationship of parties: The employee does not have other clients; does not hold himself out to the public, or advertise, etc.; can be fired or terminated; or there is a continuing relationship and no limited time frame.

Financial controls: Determining factors include if the worker is reimbursed for business expenses; cannot earn a profit or loss on the business; is the paid by the hour or by the week; works only for Rowan or an affiliate.

Independent Contractor Factors

Some factors which indicate the potential for being classified as an independent contractor

  • Worker sets own schedule, work location, tasks, and how to do perform tasks
  • Can also work for others during contract
  • Paid by project
  • Cannot be fired, except for non-delivery of contract
  • No continuing relationship is anticipated
  • Has other clients or hold self out for other business
  • Has significant investment in the business,rents space, has employees
  • Pays for own expenses

These factors alone are not determinant of an independent contractor status.

If you have any questions please contact us at independentcontractor@rowan.edu 

 

Independent Contractor Process

  1. Identify vendor Banner ID 
  2. Check Independent Contractor Determination Database for determination status.
  3. Ensure scope of services matches determination approval.
  4. Complete independent contractor agreement with event details and send to vendor for review and signature.
  5. Submit contract through contract portal for review and university signature.
  6. Submit requisition when contract is completed, including the completed contract as supporting documentation.

If any step above was not met, please follow corresponding instructions.

  1. No Banner ID: 
    1. Submit New Vendor Intake packet and Independent Contractor Determination Form through vendor portal.
    2. Banner ID will be received once the vendor is built, and determination is made. 
      • If determined to be an independent contractor, follow steps 4-6 above.
      • If determined to be an employee, next steps will be included in Banner ID email confirmation.
  2. Vendor has Banner ID, but no determination on file -OR- Vendor has Banner ID, but scope of services does not match the determination:
    1. Complete independent contractor agreement with event details and send to vendor for review and signature.
    2. Send the vendor the independent contractor determination form to be completed. 
    3. Submit both the agreement and independent contractor determination form through the contract portal for review. 
      • If determined to still be an independent contractor, the contract will be completed.
      • If determined to be an employee, next steps will be sent via email.

If you have any questions, please contact us at independentcontractor@rowan.edu. 

 

Policy

Predetermination

Upon Determination

A. Employee

B. Independent Contractor

CONTRACT REQUEST PORTAL