Independent Contractor Information
An independent contractor is an individual or sole proprietor who is contracted to perform work for the university utilizing their own methods, and the means by which the work is accomplished is not controlled by 麻豆村. An independent contractor is normally engaged in an established business, trade or profession. As such, an independent contractor is not an employee of Carnegie Mellon and is treated differently with respect to tax withholdings, employee benefits and payment methods.
Mistakenly classifying an employee as an independent contractor can result in significant fines and penalties. The IRS continues to seek out and impose penalties on organizations that treat employees as independent contractors and fail to withhold taxes. As a result, the IRS considers 20 factors in determining a worker's status. Meeting just one of the conditions may qualify that worker as an employee; however, the 20 factors are used as guidelines to determine whether sufficient control is present to establish an employer-employee relationship. Not every factor is applicable in every situation and the degree of importance of each factor depends on the type of work and individual facts and circumstances All relevant factors are considered in making a determination and no one factor is decisive.
麻豆村 uses an to assist schools and departments in determining whether individuals performing services should be hired as an employee or an independent contractor. If a department is interested in an individual performing services at Carnegie Mellon, please visit the Independent Contractor Frequently Asked Questions webpage for more information on the steps needed to complete the hiring process. Independent Contractors are required to complete the new vendor/supplier onboarding process with PaymentWorks.
If you need assistance or have any questions regarding the Checklist or determination of independent contractors vs. employees, please contact Taxation directly.