![]() ![]() Guest lecturers and speakers visiting for fewer than two weeks.Expense reimbursement only - no service or honorarium payment is included.Corporations, partnerships or other business entities not operating as a single-member LLC.Exceptions to the determination checklist requirement include: This should occur prior to any work being completed.ĪSU also recognizes that there are some situations that this approval should be automatic. Once a department believes that their situation should be reviewed for approval as an independent contractor relationship, they would complete the Independent contractor determination checklist. Transitional positions for incoming or leaving employees, including those positions that were ended due to graduation.Some services by a company may be able to be provided however disclosure and review would be required by either ASU’s Office of Research Integrity and Assurance or ASU’s Office of General Counsel. This would constitute a conflict of interest and would have to follow the rules outlined in ACD 204-08. Services by any individual or company that is owned by an ASU employee.Long-term or full-time research assistance.Instructors of Record, or those teaching accredited courses for all or the majority of the term.With few exceptions, the following types of services will not be approved for independent contractor treatment: Independent contractors have freedom of choice in vendor relationships and sub-contractors.If ASU insists that an individual uses a specific vendor or hire a specific person to assist, this is indicative of an employee-employer relationship.Where to purchase supplies or services.Freedom to choose which piece of equipment to use and where it is located may indicate an independent contractor relationship.Insisting someone use ASU equipment or labs may indicate an employee-employer relationship.If the individual must be trained in and follow protocol approved by the Institutional Research Board, this may indicate an employee-employer relationship.Minimal or as-needed-only training may indicate an independent contractor relationship.Detailed training may indicate an employee-employer relationship.The more an individual invests in equipment and supplies, the more likely it is that this person is an independent contractor.If the project takes less time than anticipated, the individual has made more money for less time invested, allowing him or her to reallocate time and theoretically make additional money. An example is an individual being paid a flat fee for a project. If an individual has an opportunity for profit or loss, it supports an independent contractor relationship.The more loosely defined the instructions, the more likely this allows the individual to be an independent contractor.The more specific the instructions, the more it indicates an employee-employer relationship.Instruction on when or where the work is performed.Evaluating the result of an individual’s work may indicate an independent contractor relationship.Evaluating how the work is performed may indicate an employee-employer relationship.This may include advertising, maintaining a location and bidding and providing services to other customers besides ASU. For an independent contractor status to be supported, the individual must be able to seek out other business opportunities while providing work for ASU.The more an individual relies on ASU for his or her financial solvency, the more this indicates an employee-employer relationship.A fixed fee is indicative of an independent contractor relationship use when possible.Hourly, weekly or monthly fees may indicate an employee-employer relationship.If so, it would be extremely difficult to support an independent contractor determination. Still, we caution agreeing to reimburse an individual if he or she is paid on an hourly basis. If ASU reimburses an individual of certain costs, this will not invalidate his or her treatment as an independent contractor. Providing expense reimbursements is more indicative of an employee-employer relationship however, we realize it is customary for guest lecturers to receive travel-related costs.While each case is different, below are several factors that Tax Services will use to review the relationship. The extent that ASU controls both the work and the economic aspects play a significant part in determining if someone will be approved as an independent contractor or if the department should hire them as an employee. ![]()
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