Independent Contractors are individuals or businesses who enter into a Personal Services Contract with the university and function independently. They are subject to the control and direction of the university only in regard to the end result of the work and not as to the way in which the work is done. Unlike an employee, an independent contractor pays for all expenses and social security and income taxes, and is not eligible to receive employee benefits. When determining whether the university can enter into a contract with an Independent Contractor, it is crucial that state and federal guidelines and requirements are considered. The university must ensure that the work, and the manner in which is performed, does not create an employer/employee relationship instead of an independent contractor relationship. This determination is the responsibility of the University of Colorado System Human Resources office based on information that the department and the contractor provide on the Scope of Work (SOW) form.
For information on determining Independent Contractor or Employee status, please see the Internal Revenue Service (IRS) pages that follow:
- IRS definition of Independent Contractor
- IRS information page on Independent Contractor or Employee Status
- IRS 20 Factor Test