When is a person deemed an independent contractor?

Kbake

In the university setting is a person who is only hired to teach a teacher certification class and not the regular curriculum really an independent contractor. Also if the courses taught are ones that are also ones that are taught in the regular curriculum is the independent contractor status eliminated? What are the grey areas?

Theresa Gegen TX

There is really no bright line rule. The IRS uses a 20 point test, that boils down to the "right to control" the details of the work.

If the school is controlling the details (how the classes are taught, all the tests, grading, etc), then the person is probably an employee. If the school is just giving the person a task, teach course X, and the instructor is determining the details of how it is taught, they may be an independent contractor.

An independent contractor has to pay their own taxes (no withholding), so if the school is taking payroll tax withholdings out of their paycheck, they are an employee.

If an independent contractor, the school should have a written agreement with the person specifying that they are one.

Good Luck!!

Steve McElfresh

The IRS recently consolidated the list of criteria to 11, and it is available in IRS pub. 15-A and at [url]http://www.irs.gov/formspubs/page/0,,id=106115,00.html#T9[/url]. The criteria are in three groups, Behavioral Control, Financial Control and Type of Relationship. Pretty boring stuff, but important.

It is very likely impossible for any of us to conclude from the brief information you presented whether IC status might hold in the circumstance you mention. But a close review of the IRS guidelines should help.


Regards,

Steve Mac


Steve McElfresh, PhD
Principal
HR Futures

408.605.1870