The Independent Contractor Checklist

Written by Blain Woods.

This month’s Finance Division Knowledge Base spotlight is on the following article: What is the Independent Contractor Checklist, what is it for, and when do I need to submit it?

The university has developed the Independent Contractor Checklist to help departments determine if an individual providing services can be classified as an independent contractor or if they should be paid as a temporary employee. This is important because if the individual is classified incorrectly, the department could face penalties and fines from the Internal Revenue Service.

Departments must complete this checklist and include it with the contract sent to Procurement Services through the Procurement Contract Portal. The checklist will be reviewed to determine if the individual can be classified as an independent contractor. If it is determined that the individual can be classified as an independent contractor, Procurement Services will process the independent contractor agreement for signature.

Remember:

If the individual providing the services is a former employee of NC State University, they cannot provide independent contractor services in the same calendar year that they were employed by NC State.

Also, if the services being performed by the individual are similar or the same as the responsibilities of the individual when they were an employee, it is best practice to rehire the individual as a temporary employee.

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