Service Providers
Welcome to our informational page designed to provide valuable guidance on engaging independent contractors and limited engagement (LE) service providers while ensuring compliance with federal, state, and local regulations.
Overview:
Each individual service provider (“worker”) must be properly classified as an employee or independent contractor in accordance with federal and state tax and employment laws. Schools and centers that engage workers must submit the required documentation for the determination of each worker’s status before any services are performed or payment requests are processed. All individuals who perform services for the University are presumed to be employees unless the relationship satisfies Internal Revenue Service (IRS) standards for independent contractor status. The evaluation must be based upon IRS standards and not upon administrative ease, budget constraints, or funding guidelines.
All independent contractor and limited engagement forms will be sent to Corporate Tax, Compliance, and Payroll for review and final determination via a BEN Helps Support Ticket.
The Corporate Tax Department will return the signed forms with the determination to the department. The determination will state whether the individual will be onboarded as an independent contractor, temporary employee, or compensated under a Limited Engagement Agreement.
Pre-Engagement Review:
To avoid any legal complications and to streamline the process, it is essential to conduct the review process BEFORE engaging or hiring any individual. This step ensures that all necessary requirements and legal considerations are met before moving forward.
Process
For information on navigating the service provider classification process and payments, please visit the Division of Finance website. A detailed description of the process can be read here.
Please note: If the activity/service takes place outside of the United States, Global Support Services (GSS) may be consulted by the Corporate Tax, Compliance, and Payroll Specialist to determine if the individual can be engaged as an independent contractor or whether a PEO (Professional Employment Organization).
Limited Engagement Process
A Limited Engagement (LE) Agreement is a payment to an individual (nonemployee/faculty, non-student) for providing a service of an academic nature, short duration, and/or low dollar amount ($1,000 or less per transaction; $5,000 per year max). This is intended for guest speakers, guest lecturers, artists, performers, writers/editors, board members, critics, preceptors, and mentors and/or those services meeting the fee guidelines.
(See Policy #2319.3 – Payments Made for Limited Engagements)
If the services fall under the Limited Engagement Agreement, review the procedural guidelines and required documents before the individual performs the work.
Documents & Forms
- Service Provider Questionnaire
- Service Provider Evaluation Worksheet
- Independent Contractor Agreement Template
- IRS Common Law Test (Employee vs. Independent Contractor)
- Procedural Guide for Independent Contractors and Limited Engagement
- Limited Engagement Agreement – Services in the U.S. – U.S. Citizens
- Limited Engagement Agreement – Services in the U.S. – Non-Resident Alien
- Limited Engagement Agreement – Global services outside of US
- Considerations for International Independent Contractors
- Classification and Payment Training Available in Workday Learning
- Worker Classification Training Slide Deck