Updates to GAP 200.128 and GAP 200.129

December 30, 2013

Corporate Accounts Payable has made some recent changes and updates to GAP 200.128 and GAP 200.129 as detailed below. We hope these enhancements will provide additional guidance with paying independent contractors.

GAP 200.128: Incorrect classification of an individual as an independent contractor can have significant implications for not only the University/Health System, but also for the individual. The Affordable Care Act health care coverage requirement for employees is a new potential pitfall for incorrectly classifying an individual as an independent contractor. Incorrect classification can lead to Duke University/Health System being fined for not providing coverage to all employees.

GAP 200.129: Determining an individual’s status as an independent contractor or an employee is based on the relationship between that individual and Duke University/Duke University Health System. Current and former employees should be paid through Corporate Payroll. Thus, individuals should not receive a W-2 and a 1099 form in the same tax year for services performed. Fair Labor Standards Act, Worker’s Compensation and the IRS are reasons to consistently treat an individual as an employee.

If you have any questions, please contact Corporate Accounts Payable at 684-3112 or via e-mail at accountspayable@duke.edu