There are two independent basic contracts for campus work: independent contractors will receive a 1099-MISC federal tax form until January 31 of the year following their activity, if they received at least $600 in the previous calendar year. In some cases, the payment of independent contractors may be subject to withholding tax (see Policy 707 – NC Income Tax Holding Requirements for Non-Wage Compensation Paid To Nonresidents). The Personal Services Classification Analysis is a series of 20 questions (the de facto IRS test 20) that should help them determine whether the person you pay is acting as an employee or as an independent contractor. This analysis is necessary for any independent contractor who is paid by the independent contract contract. Human Resources will decide definitively whether a person should be considered an employee or an independent contractor. A copy of the form and a detailed definition of each question can be included in the personal services classification analysis preparation guide. An independent contractor is a person who contracts with the university for the self-determination of certain goods or services at the university. As a general rule, independent contractors retain control over their schedules and the number of hours worked, the jobs accepted and the performance of their work. A person cannot be considered an independent contractor if he or she is considered a university employee. The University of North Carolina at Chapel Hill often requires services from people who are not employed at the university but are necessary for the success of university projects and programs.
Campus units may use internal and campus support centers, but where specialized assistance is required, campus units may submit an independent contract contract contract with an appropriate cover letter on the department`s letterhead to create a working relationship with an individual and allow payment. These agreements must be concluded prior to the delivery of the service. The independent contractual agreement in North Carolina is used to define the conditions under which a contractor concludes a project for a client. Under common law, any person or company that works independently and works outside of a client`s normal activity can be considered an independent contractor. The written agreement indicates the amount of compensation received by the contractor and the tasks he must perform. Most contracts also include an expiry date and/or an expiry date. Signed copies of the agreement should be retained by both parties for further submission. Once the contract is signed, the independent contractor is subject to the management or control of the university only with respect to the final result, and not with respect to the methods and means used to achieve this result. The original services must obtain confirmation of the status of independent account holder before taking out an employment obligation or preparing a form (s) request for payment.
Please contact Student Employment or Human Resources to determine the appropriate payment method for individuals who do not meet the compensation criteria as an independent contractor. Examples of individuals who can be paid as independent contractors are: Campus units should read Directive 708 carefully and follow procedure 708.1 or 708.3, depending on the circumstances. The forms required for the IC authorization procedure are linked below or included in the following guidelines and procedures: State Definition – No specific legal definition. Personal Services Classification Analysis FormInpendent Contract Part 1- For the issuing department to completeIndependent Contract Part 2 – For the service Provider to completeIRS Form W-9Check/ACH Request Form Foreign IC request and questions should be sent to IC_Review@unc.edu, and should follow be the appropriate procedures above.