PurposeTo establish a policy and to guide project directors and others in the use of Independent Contractors who are to be paid in an amount less than $5,000 on projects and accounts administered by the Research Foundation.
Definition An Independent Contractor is an individual or firm providing specific, personal services free from the direction and control of performance including the means and methods used to accomplish the work. The general test is one of control i.e., that an individual is an Independent Contractor if the entity for which the services are performed has the right to direct only the result of the work and not control the means or method of accomplishing that result.
ApplicabilityThis policy applies to all projects and Research Foundation accounts that will engage the services of an Independent Contractor to be paid in an amount less than $5,000.
Background Grants and contracts are awarded to the Research Foundation with the assumption that there is the staff and technical expertise to carry out the project without extensive outside assistance. Occasionally, Independent Contractors supplement a project's technical needs and provide specific services to the Research Foundation.
Independent Contractors fall into two categories:
The IRS employs a number of factors to appropriately classify Independent Contractors. Determinations are made on a case by case basis. Some of the IRS factors are listed herein, but for further guidance the project director may access the IRS website:
http://www.irs.gov/ (refer to Publication No. 1799). Note: the final determination regarding the appropriate classification of the Independent Contractor will be made by the Research Foundation.
Factors supporting employee classification:
Factors supporting an Independent Contractor classification:
ProcedureBefore engaging an Independent Contractor, the project director should determine that the expense is allowable under funding agency and Foundation policies and that funds are available. Any prior approvals required by award or agency regulations must be obtained.
Implementation The provisions of this policy are effective January 1, 2007.
GRANTS OFFICE STAFF
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