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Employee vs. Independent Contractor Checklist
Contractor's Name
When contracting for services, you must evaluate whether the Internal Revenue Service (IRS) would consider the person
providing the services an independent contractor or a South Puget South Community College employee. There are
financial consequences to SPSCC if the IRS determines that SPSCC misclassified a service provider.
An independent contractor is a person or business entity which:
is free from SPSCC’s immediate direction and control in their performance of the services
is responsible to SPSCC only for the contracted result of the work, not the manner or method used to accomplish the work
solely controls and directs how the service is provided, who provides it, and the means used to provide the service
sets his/her own prices for goods and fees for service
can terminate contract while not terminating his/her business
can terminate contract while not creating an unemployment situation
uses advertising to promote their business
provides goods and/or services to a segment general public of their own choosing
When contracting for services you should use the following checklist, which compares an employee characteristics with those
of an independent contractor. After completing the checklist have the form signed by the Dean or Director of your department
and forward to the Procurement Office.
EMPLOYEE
Directed and controlled by SPSCC
Does tasks in the manner SPSCC requests
Does not have a financial investment in the work they
are providing for SPSCC
SPSCC provides tools, equipment, and skills training
The individual works under SPSCC's business license
Often receives benefits beyond payment for service
(retirement and health plans)
Receives a net check. SPSCC withholds income
tax and FICA taxes
Works at SPSCC’s place of business
Works the hours set by SPSCC
Works only for SPSCC
Does not advertise
Eligible for workers’ compensation benefits
Has some rights prior to termination
Covered by minimum wage and overtime rules
May join or form a union
INDEPENDENT CONTRACTOR
Independent
Does tasks in his/her own way
Assumes the costs associated with doing the work for
SPSCC
Comes to the job with required tools, equipment, skills
The individual obtains his or her own business license
Receives only payment for service
Receives a gross amount check. Pays own taxes.
Works at his/her own office or home
Sets his/her own hours
Provides services to multiple entities
Has customers as a result of advertising and being
known by the public as a business
Not covered by SPSCC’s workers’ compensation
No rights prior to termination unless contracted
Paid as contracted; no overtime
No right to union representation
If you need help making a determination, please contact Procurement Services by email a vsherrard-hannon@spscc.edu or by
phone at 360.596.5249.
If it is determined that the relationship you are considering falls into the Employer/Employee category, you must contact Human
Resources by email at ssoto@spscc.edu or by phone at 360.596.5361 to determine the appropriate mechanism for hiring the
individual.
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Dean or Designated Approver's Printed
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Dean or Designated Approver's Signature
Date
click to sign
signature
click to edit
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