Employee-Independent Contractor Classification Checklist

TO BE COMPLETED BY THE WORKER PERFORMING THE SERVICE

It is critical that business owners correctly determine whether the individuals providing services are employees or independent contractors.


Individuals who are not U.S. citizens or permanent legal residents (green card holders) must follow the "Affiliates and Employees Outside the United States" process. Please click here for more details.


Generally, you must withhold and deposit income taxes, social security taxes and Medicare taxes from the wages paid to an employee. You must also pay the matching employer portion of social security and Medicare taxes and unemployment tax on wages paid to an employee. Generally, you do not have to withhold or pay any taxes on payments to independent contractors.


Before you can determine how to treat payments you make for services, you must first know the business relationship that exists between you and the person performing the services.


The purpose of this checklist is to assist in the determination between an employee and an independent contractor. Federal and state regulations assume all services are provided by employees and puts the burden of proof on the employer to show that an independent contractor relationship exists. There are significant penalties for classifying a worker as an independent contractor when they meet the criteria for employee classification. A worker may always be classified as an employee without penalties.

Are you a US Citizen or Permanent Resident?*
Will the services be performed in the U.S.?*

This is a must to be classified as an independent contractor. Under U.S. tax law, the independent contractor receives full compensation without reduction for federal or state income taxes, Social Security tax, or for unemployment or disability taxes. Services performed outside the U.S. often mean foreign independent contractors must be paid via foreign banking institutions that also manage the reconciliation of foreign taxes. Georgia Tech does not pay independent contractors for services performed outside of the U.S.

Do you have a relative employed at the University?*

Unit/College Information

Which unit/college would you be working under?*

Please make sure the email is formatted as GTAccount###@gatech.edu

You can confirm the Unit-Level HR Contact with your Hiring Manager.

Please make sure the email is formatted as GTAccount###@gatech.edu

References

Please provide at least one reference who can attest to the work you have completed in the last calendar year that is the same as the work you would be expected to do at Georgia Tech.

Phone

Write one sentence explaining how you know or have worked with this person, where, when, and for how long.

Phone

Write one sentence explaining how you know or have worked with this person, where, when, and for how long.

Phone

Write one sentence explaining how you know or have worked with this person, where, when, and for how long.

Statement of Work (SOW)

Please limit your scope of work to 400 words or less.

Has the prospective Independent Contractor started performing or completed the services outlined in the Scope of Work?*

Please note that all services must have approval in advance (this includes all mandatory signatures) prior to starting the services. Moving forward without this approval process will result in delayed or non-payment for services. You will be notified via email of the decision.

PART I: Independent Contractor Determination

To be completed by the individual performing service.

Section I – Relationship with Georgia Tech

Do you currently work for Georgia Tech as an employee?*
Has the University extended you an offer of employment?*
Have you worked as an employee of the Institute (i.e., Georgia Tech payroll specifically issued a paycheck to you, (will) received a W2 from Georgia Tech) during the 12 months prior to the date of this contract?*
Are you currently employed within the University System of Georgia?*

Section II – Classification Guidelines

Only Complete One Section (A, B or C - based on the services you will provide)

Section D must be completed in addition to A, B or C

Sect. 2 Classifications*

A. Guest Speaker/Continuing Education Instructor

Will you teach a course from which students will receive credit toward a degree?*
Will Georgia Tech provide you course materials and tools?*
Will Georgia Tech reimburse you for course related expenses?*
Have you been invited, as a guest speaker, to lecture in a seminar, colloquium, class?*
Have you been engaged by Georgia Tech fewer than 3 times in the past 12 months?*
Have you provided the same or similar services to other unrelated entities in the last 12 months?*
Will the department provide specific instructions regarding performance of the required work rather than relying on your expertise?*

B. Researcher

Will you perform research under the supervision of a Georgia Tech professor or employee?*
Will you serve in an advisory or consulting capacity with a Georgia Tech Professor or employee?*
Have you provided the same or similar services to other unrelated entities in the last 12 months?*
Will your period of service be completed within a finite time frame?*

C. Individuals not covered under A and B

Have you provided the same or similar services to other unrelated entities or to the general public as a trade of business during the last 12 months?*
Will your period of service be performed within a finite time frame?*
Will the department provide specific instructions regarding performance of the required work rather than relying on your expertise?*
Will Georgia Tech set the number of hours and/or days of the work week that you are required to work, as opposed to you setting your own work schedule?*

D. Other Questions for purposes of assessing independent contractor status:

Does Georgia Tech have the right to direct and control the manner and means by which you carry out the duties assigned and/or job required?*
Have you received other payments from Georgia Tech within the past 12 months?*
Are you receiving a flat fee for services?*
Will you be paid based on time worked (hourly, weekly basis) or upon completion of the project?*
Are your services made available to the general public on a regular and consistent basis?*
Do you perform work for more than one entity/company at a time?*
Are you providing all the equipment required to complete the service?*
Do you have the right to retain others to assist in carrying out the service solely within your discretion and compensation will be paid by you?*
Will you be using either a Georgia Tech classroom, office space, or other Georgia Tech facility to perform the service?*
Are all expenses incidental to the performance of the service, including travel expenses borne by you, unless reimbursement is permitted by the express terms of the contract and invoiced with appropriate documentation?*
Is Georgia Tech setting your work schedule, i.e. the number of hours to be worked and when the work to be completed?*
If required, will you submit periodic progress reports to the responsible department chair or departmental administrator as to the status of the work being performed?*
Is the right to control the progress of the project or work being performed at your discretion?*
Are you only providing services as stipulated in the SOW and only for any period covered by the contract?*
Are you being required to attend any training or employee/contractor orientation?*
Is Georgia Tech providing you any assistance to help you with the services provide?*
Can Georgia Tech terminate you for reasons other than non-performance of the contract?*
Does Georgia Tech require the work to be done in a particular order or sequence?*
Do you have the right to terminate the relationship without liability or penalty?*
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