Independent contractors are individuals or entities engaged to perform specific services for the university under a contractual agreement, without being subject to the same direction or control as employees. They do not receive payments through the university’s payroll and are not eligible for employee benefits.

Before contracting a service provider, departments should ensure proper classification and obtain approval according to the university's policy and process. This includes completing and retaining all required documentation – classification checklist, a W-9 form and a signed service agreement.

Key differences between employees and contractors are based on IRS guidelines, which focus on three main categories evaluated using the 20-factor test. These are behavioral control, financial control and the working relationship between the parties.

For payments totaling $600 or more in a calendar year, the university is required to issue a Form 1099-NEC to the contractor.