Written by Hays Poole.
An independent contractor is a person, business or corporation that provides goods or services to the university under terms specified in a written contract or agreement. Unlike an employee, an independent contractor does not work regularly for an employer but works when required.
It is important to look at the scope of the work and determine if it is comprised of tasks best accomplished by an employee. The Office of General Counsel developed an Independent Contractor/Employee Checklist that aids with this determination.
When contracting an individual, we recommend going over this checklist to evaluate the employment status results. A completed checklist should be included with your contract submission for all independent contractor agreements where the contractor is an individual.
For additional guidance on how to distinguish between an independent contractor and and employee, please visit the IRS website. To learn how to process payments to individuals for services rendered, please review the Changes to Independent Contractor Payments article.
Please note that NC State cannot pay employees as independent contractors and cannot pay former employees as independent contractors if they were paid as an employee within the same calendar year.
To learn more, please refer to the Independent Contractor Checklist article in the Finance Divison Knowledge Base.