Independent contractor information

Every year, ASU engages independent contractors for a variety of purposes. Tax Services provides guidance on the IRS rules and considerations to take into account when designating an individual as an independent contractor. To comply with U.S. tax and labor laws, the ASU community must follow certain procedures. Tax Services approves the independent contractor status before an individual begins his or her work. When defining someone as an independent contractor, behavioral and financial control types are measured.

日本一本道a不卡免费If you have questions, contact your Human Resources Partner or Tax Services.

Behavioral Control

The extent to which ASU has the right to direct, or control, how an individual performs his or her duties. The less control ASU has, the more likely it is that the individual is an independent contractor. Factors may include the following:

  • 日本一本道a不卡免费Instruction on when or where the work is performed

    • The more specific the instructions, the more it indicates an employee-employer relationship.

    • 日本一本道a不卡免费The more loosely defined the instructions, the more likely this allows the individual to be an independent contractor.

  • Where to purchase supplies or services

    • 日本一本道a不卡免费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.

    • 日本一本道a不卡免费Independent contractors have freedom of choice in vendor relationships and sub-contractors.

  • What tools or equipment to use

    • 日本一本道a不卡免费Insisting someone use ASU equipment or labs may indicate an employee-employer relationship.

    • Freedom to choose which piece of equipment to use and where it is located may indicate an independent contractor relationship.

  • How a project is evaluated

    • Evaluating how the work is performed may indicate an employee-employer relationship.

    • 日本一本道a不卡免费Evaluating the result of an individual’s work may indicate an independent contractor relationship.

  • Training

    • Detailed training may indicate an employee-employer relationship.

    • 日本一本道a不卡免费Minimal or as-needed-only training may indicate an independent contractor relationship.

    • If the individual must be trained in and follow protocol approved by the Institutional Research Board, this may indicate an employee-employer relationship.

Financial Control

日本一本道a不卡免费The extent to which ASU has the right to control the economic aspects of an individual’s work. The less that ASU depends on an individual’s work for financial solvency or decisions, the more indicative this is of an independent contractor relationship. Factors may include the following:

  • Fees

    • Hourly, weekly or monthly fees may indicate an employee-employer relationship.

    • 日本一本道a不卡免费A fixed fee is indicative of an independent contractor relationship; use when possible.

  • 日本一本道a不卡免费Expense reimbursements: 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. If ASU reimburses an individual of certain costs, this will not invalidate his or her treatment as an independent contractor. Still, we caution agreeing to reimburse an individual if he or she is paid on an hourly basis. If so, it would be extremely difficult to support an independent contractor determination. 

  • Financial reliance on ASU

    • The more an individual relies on ASU for his or her financial solvency, the more this indicates an employee-employer relationship.

    • 日本一本道a不卡免费For an independent contractor status to be supported, the individual must be able to seek out other business opportunities while providing work for ASU. This may include advertising, maintaining a location and bidding and providing services to other customers besides ASU.

  • Significant investment: The more an individual invests in equipment and supplies, the more likely it is that this person is an independent contractor.

  • Opportunity for profit or loss: If an individual has an opportunity for profit or loss, it supports an independent contractor relationship. An example is the individual being paid a flat fee for a project. 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.

Performing due diligence on the independent contractor status allows each case’s circumstances to be evaluated and a determination made with the relevant facts. If the requesting department thoroughly completes the Specific Services to be Provided section of the Independent Contractor Determination Checklist (ICC) form, this will limit the need for Tax Services to request more information and delay approvals.

日本一本道a不卡免费No. Even if a student graduates, you must continue paying him or her through payroll. Your HR specialist can assist you in determining the right position or job code to use.

No. An instructor of record is subject to ASU’s academic manual and policies; ASU has behavior control over their activities. 

Yes. ASU takes the position that instructors of non-credit continuing education or executive education courses are independent contractors.

No. You can fill out an ICC form for approval of up to 12 months. Include the estimated total fee that will cover the work performed. Clearly describe how frequently this person will be used, the type of projects this person will work on and include an assurance that the contractor can choose each project independent of the others. So Tax Services does not have to review the same ICC form multiple times, always attach a copy of the approved checklist to each payment voucher.

No. Tax Services can only approve an ICC form for up to 12 months. You must submit a new form for each consultant for each 12-month period.

Please discuss this with your HR Specialist. You may be able to hire an individual in a part-time capacity or for a limited time.

The ICC form is on the Financial Services forms page日本一本道a不卡免费 under the Tax tab.

Per FIN 421–01日本一本道a不卡免费, obtain prior approval from Tax Services before making any commitment or final agreement with a consultant if your department anticipates total payments in a calendar year will be $600 or more.

Yes. FIN 421–01日本一本道a不卡免费 lists the following exceptions:

  • Payments to U.S. citizens and resident aliens that are less than $600 per recipient, per calendar year

  • Guest lecturers and speakers visiting campus for less than 2 weeks

  • Individuals performing external peer review consulting services as part of departmental or program accreditation or performance monitoring

  • Performers giving a limited number of performances

  • 日本一本道a不卡免费Athletic officials

  • 日本一本道a不卡免费Corporations and partnerships with an employer identification number

Pages