Independent Contractors
1. PURPOSE
2. POLICY
Brigham Young University–Hawaii ("university") complies with Internal Revenue Service requirements to properly classify employees. This is done by reviewing the appropriate documents and following the necessary processes to ensure proper classification of and subsequent payment to independent contractors.
3. IMPLEMENTATION
Definitions
Employee – An individual in an employment situation in which the employer has the right to control and direct the individual with regard to the result to be accomplished and the process by which the result is accomplished.
Independent contractors – Individuals who render a service and meet contractor conditions established by the IRS. They typically have a separate workplace, are not supervised, and have a particular set of skills not available elsewhere within the organization. They are not entitled to employee benefits, are not covered by workers' compensation, and their pay is usually not subject to income tax withholding.
Consultants – Independent contractors who more specifically provide professional advice. They usually have a separate skill or expertise not available within the university, and the need for their services commonly does not extend beyond a limited period of time in which to complete a specifically defined project.