Independent Contractor Versus Employee

It is often necessary to engage an individual to perform a certain task or tasks.  In order to protect both the individual and the College, it is necessary to formalize the relationship.  The two most likely alternatives are to hire someone as an independent contract or hire them as an employee.

The determination of which method to use has significant tax implications for both the employee and the College.

What's the Difference?
An Independent Contractor:
  • Operates under a business name
  • Performs a specified task or provides a specified work product in a specified period of time
  • May have his/her own employees
  • Invoices for work completed
  • Has more than one client
  • Has own tools and sets own hours
  • Keeps business records
  • Performs duties dictated or controlled by others
  • Performs multiple, on-going tasks
  • Is given training for work to be done
  • Works for only one employer

To be sure, please contact Human Resources for advice prior to entering into an agreement.

If it is determined that an independent contractor relationship is appropriate, the independent contractor template can be used.  If the contractor prefers to use their own contract, please forward the agreement to Procurement for review.