Employee? Or Independent Contractor?. Please Note An employee of St. Norbert College, or a former employee (paid by the College within the last 12 months)

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Presentation transcript:

Employee? Or Independent Contractor?

Please Note An employee of St. Norbert College, or a former employee (paid by the College within the last 12 months) CANNOT be paid as an independent contractor without PRIOR approval from the Payroll Manager.

Current Employee of St. Norbert College First and foremost – all employees of St. Norbert College are paid as employees UNLESS the employee has a separate business completely unrelated to their employment at SNC. Example 1: A professor owns a lawn service. The lawn service is contracted to cut the lawn for graduation. The lawn service is an independent contractor and should be paid through Accounts Payable.

Example 2: A St. Norbert College art teacher is asked to design a poster for an upcoming SNC event. This should be paid as an employee. Complete a Personnel Action Form (PAF) to pay the employee for designing the poster. Example 3: A St. Norbert College gardener is asked to design flower arrangements for an upcoming SNC event. This should be paid as an employee. Complete a PAF to pay the employee.

Former Employee of St. Norbert College If a former employee of SNC performs work for the College similar to the work the person performed as an employee, pay as an employee. A Personnel Action Form (PAF) must be completed.

Employee Before an employee may begin work at St. Norbert College, the following forms must be completed: Personnel Action Form (PAF) Employment Eligibility Verification (I-9) W-4 Tax Withholding Form (federal and state) Direct Deposit Authorization Form Employee Data Sheet Disclosure Authorization and Consent Form (Background Check)

Wisconsin Requirements for Independent Contractor Status Under s (8) Wis. Stats., a person is required to meet a nine-part test before he or she is considered an independent contractor rather than an employee. A person is not an independent contractor for workers’ compensation purposes just because the person says they are, or because the contractor over them says so, or because they both say so, or even other regulators (including the federal government and other state agencies) say so. Source: the State of Wisconsin, Department of Workforce Development website. htmhttp://dwd.wisconsin.gov/wc/employers/independent_contractors

Nine-Part Test To be considered an independent contractor and not an employee, an individual must meet and maintain ALL NINE of the following conditions: 1.Maintain a separate business. 2.Obtain a Federal Employer Identification Number from the Federal Internal Revenue Service (IRS) or have filed business or self-employment income tax returns with the IRS based on the work or service in the previous year. 3.Operate under specific contracts. 4.Be responsible for operating expenses under the contracts. 5.Be responsible for satisfactory performance of the work under the contracts. 6.Be paid per contract, per job, by commission or by competitive bid. 7.Be subject to profit or loss in performing the work under the contracts. 8.Have recurring business liabilities and obligations. 9.Be in a position to succeed or fail if business expense exceeds income.

Independent Contractor Before services are performed for St. Norbert College, the following forms must be completed: St. Norbert College Independent Contractor Verification Form St. Norbert College Independent Contractor Agreement St. Norbert College Disclosure Authorization and Consent Form