Business Processes and Forms Regarding Independent Contractors

Corporate Payroll and Accounts Payable has partnered with Corporate Tax, Legal Counsel, Procurement Services, and Human Resources to develop new business processes and forms to enhance the overall process.  In our efforts to clarify and streamline this process, our primary objective was to maintain a balance between compliance and customer service.  We have piloted the new processes and resources with several of our colleagues within individual departments. Feedback from the pilot groups was incorporated into the new products.

The primary compliance requirements are based upon regulations provided by the following governmental agencies: Department of Labor, Internal Revenue Service (IRS), and  Homeland Security. In addition, the IRS recently introduced a new form 8919 that allows an individual who was paid as an independent contractor previously to challenge the status as contractor and request employment status which, in turn, holds the employer responsible for the employer share of FICA taxes. The new form indicates that if the individual is performing services in a substantially similar capacity or under similar direction and control as when they were an employee then they must be paid as an employee.

It is critical that you utilize the tools listed below to arrive at the employee or independent contractor decision prior to engaging the individual in any services.  First, review the matrix and determine if you should engage as an employee or proceed to the ICC form. Once the ICC form is completed, it will indicate whether the individual is an independent contractor or employee. 

  1. Determining Independent Contractors or Employees Matrix
  2. Independent Contractor Checklist (ICC)
  3. Short Term Hire Matrix
  4. Elimination of the ESERF Form
  5. GAP 200.136, Accounts Payable Check Request