Independent Contractor Decision Tree

About

This decision tree is a tool to assist you in determining whether a worker should be considered an independent contractor or employee. Retain this tool in your records with the contractual agreement with the worker. You may be asked to present it to justify payment as an independent contractor in order to obtain payment.

** NOTE: This decision tree does not apply to the purchase of a product.

Who are you trying to pay?

Describe the work being performed.

Name the person(s) performing the work?

Where is this person(s) employed?

Is the contract with an individual or a company? *

Individual
Company

Is the individual a current or former employee of the University of Kansas, a Board of Regents Institution or the State of Kansas?

Have all of the following conditions been met? : No pre-arrangement, 60 days waiting period, not being hired to do substantially similar work to previous employment, short term assignment/not filling a vacant position

Yes
No

Hiring the individual will require payment of fringe and KPERS drawdown is prohibited.

Have all the following conditions been met? : not being hired to do substantially similar work to previous employment (different position)

Yes
No

Hiring the individual will require a two year limit, SEHP eligibility if not benefits eligible, and KBOR drawdown is prohibited.

Consult the University Retiree Rehire Policy for any exceptions that may allow re-hiring. If permitted, then continue.

Is anyone that will be performing work under the contract an employee of the University of Kansas, Board of Regents or State of Kansas? *

Yes
No

Does the individual have a separate taxpayer/employer identification number (FEIN/EIN)? *

Yes
No

Is the work being performed under the contract substantially similar to the duties the person(s) perform for the University of Kansas, Board of Regents or State of Kansas? *

Yes
No

Is the individual a US Citizen or Permanent Resident? *

Yes
No

Is the payment being made as a research incentive or for participation in research? *

Yes
No

Is the individual a KU student? *

Yes
No

Is the individual a high school student? *

Yes
No

Is the KU student performing services or work on an ongoing basis or to meet a continuing obligation? (If a student is performing or fulfilling a one time job or task, the answer is no) *

Yes
No

Will a University employee instruct the worker on how to do the work, rather than rely on the worker’s expertise? *

Yes
No

Will the University supply the worker with the necessary tools, materials, and equipment to perform the work? *

Yes
No

Will the University provide personnel to help perform the work? *

Yes
No

Will the University provide the facility to the worker to perform the work? NOTE: If the worker requires a facility in which to perform the work and the University is providing it, the answer is “Yes”. If the worker is performing work on a facility or equipment located in the facility, the answer is “No”. *

Yes
No

Will the University provide training (initial, periodic, and/or on-going) to the worker on the procedures to follow to perform the work? *

Yes
No

If needed to accomplish the desired end result, does the worker have the responsibility to personally hire, supervise and pay assistants? (i.e., hire persons to work for them personally, not to work for and be paid by KU). *

Yes
No

Is the worker responsible for any expenses incurred in performing the work? (If expenses are not separately itemized and paid in the contract, or if reimbursable expenses are capped at a maximum amount, the answer is YES. If expenses may be reimbursed regardless of the amount, the answer is NO.) *

Yes
No

Does the worker receive vacation or sick leave or other similar benefits from the University? *

Yes
No

Will the worker receive payment from the University at regular, payroll-like intervals? *

Yes
No

Is the payment to the worker based on an hourly, daily, or weekly rate? (If the payment is one flat fee, or is structured to make payments based upon completion of the work, the answer is NO.)

Yes
No

Does the University have the right to withhold payment if it determines the work is unsatisfactory? *

Yes
No

Must the worker work exclusively for the University? *

Yes
No

Can the worker suffer a financial loss in the course of performing services? *

Yes
No

Will the worker be providing any of the following services: general labor services, editing, proofreading, performances, guest lecturer or work payable by honorarium?

Yes
No

Does the nature of the work require a written agreement between the individual/company and the University (or KUCR) describing the scope of the project and the expected outcome, the time frame for performance, and the payment for the project?

Yes
No

Contact Human Resources at 785-864-4946 to fill out the Additional Pay Form and for more information. The Individual may not be eligible to be an independent contractor.

There may be a conflict of interest in the performance of this work. Contact the Office of Research Integrity at 785-864-3441 to discuss before moving forward with the contract

Contact payables@ku.edu if UKANS funded or rgsaccounting@lists.ku.edu if KURES funded to determine the appropriate method of payment for this individual.

Contact KU Center for Research (KUCR) Business Services 785-864-7775

The individual is not eligible to be an independent contractor. Contact Human Resources at 785-864-4946.

The individual may not be eligible to be an independent contractor. Contact Human Resources at 785-864-4946.

The Worker should be treated as an employee, not an independent contractor. Contact Human Resources at 785-864-4946.

Contact the Office of the General Counsel at 785-864-3276 (gencoun@ku.edu) or KUCR (KU Center for Research) Business Services at 785-864-3441 for a written contractual agreement.

You may move forward with the work. Retain a copy of this instrument for your records. You may be required to produce it before payment will be made.