Independent Payment for Services (IPS)

Many departments use the services of independent contractors (otherwise referred to as consultants or free-lance workers).

The Internal Revenue Services (IRS) strictly governs the distinction between an employee and an independent contractor. The IRS makes this distinction to prevent workers from avoiding certain tax liability. There are several criteria to determine whether a worker is an employee or an independent contractor, as defined by the IRS.

An employee, under the Internal Revenue Code, is "a worker who performs services for you is your employee if you can control what will be done and how it will be done.  This is so even when you give the employee freedom of action.  What matters is that you have the right to control the details of how the services are performed."

An Independent Contractor is an individual who is contracted to perform special services for the University that are not governed by the employer/employee rules.

If you have specific questions, please consult with the Office of Human Resources or the Controller’s Group.