Ohio Administrative Code
Title 3341 - Bowling Green State University
Chapter 3341-5 - Administrative Staff Policies
Section 3341-5-30 - Independent contractors policy
Universal Citation: OH Admin Code 3341-5-30
Current through all regulations passed and filed through September 16, 2024
(A) Policy statement and purpose
The purpose of this policy is to prescribe guidelines for obtaining the services and compensating an independent contractor at Bowling Green state university under the conditions established by the IRS. It is the intent of university to classify individuals as independent contractors only when there is a reasonable basis for such determination.
(B) Policy
(1)
Eligibility.
(a)
Individuals
classified as independent contractors are not eligible for any employee
benefits, are not covered by worker's compensation, and pay for services is
also not subject to income tax withholding.
(b)
Individuals who
are currently employed with Bowling Green state university may not be paid as
an independent contractor.
(c)
Individuals who
have been employed with Bowling Green state university may not be paid as an
independent contractor in the same calendar year that they were an employee
holding the same position, with the same duties.
(2)
Definitions.
(a)
Independent contractor - An individual who performs a
service for the university, but is free from substantial control or direction
in the performance of his or her work under a contract of service. An
independent contractor is always an individual and shall not be a corporation
or other similar legal entity.
(i)
Independent contractors usually have a skill or area of
expertise not available within the university, and the need for their services
commonly does not extend beyond a limited period of time in which to complete a
defined project.
(ii)
As a general rule, the university has the right to
control or direct only the result of the work done by an independent
contractor, and not the means and methods of accomplishing the
result.
(iii)
Independent contractors are further defined by the
following criteria:
(a)
No instructions. Independent contractors are not
required to follow, nor are they furnished with, instructions to accomplish a
job.
(b)
No training. Independent contractors typically do not
receive training by the university. They use their own methods to accomplish
the work, but may have to use a university system to complete their work.
(c)
Others
can be hired. Independent contractors are hired to provide a result and may
usually have the right to hire others to do the actual work.
(d)
Independent
contractor's work is not essential. The university's success or continuation
should not depend on the service of outside independent contractors.
(e)
No
time schedule. Independent contractors set their own work hours and
schedule.
(f)
No permanent relationship. Independent contractors do
not have a continuing relationship with the university. The relationship can be
frequent, but it must be at irregular intervals, on call, or whenever work is
available.
(g)
Other jobs. Independent contractors should have enough
time available to pursue other gainful work.
(h)
Location.
Independent contractors control where they work. If they work on the premises
of the university, it is for convenience and not under the university's
direction or supervision.
(i)
Order of work. Independent contractors determine the
order and sequence in which they will perform their work.
(j)
No hourly pay.
Independent contractors are paid by the job, not by time. Payment by the job
can include periodic payments based on a percentage of job completed. Payment
can be based on the number of hours needed to do the job times a fixed hourly
rate. Payment method should be determined before the job
commences.
(k)
Multiple firms. Independent contractors often work for
more than one firm at a time.
(l)
Business
expenses. Independent contractors are generally responsible for their own
business expenses, although it is not uncommon for independent contractors to
negotiate to contract for reimbursement for all associated travel
expenses.
(m)
Significant investment. Independent contractors should
be able to perform their services without the university's facilities
(equipment, office furniture, machinery, etc.). The independent contractor's
investment in their trade must be real, essential, and
adequate.
(n)
Services available to the public. Independent
contractors make their services available to the general public by one or more
of the following: having an office and assistants; having business signs;
having a business license; listing their services in a business directory; or
advertising their services.
(o)
Profit or loss
possibilities. Independent contractors should be able to make a profit or a
loss. Employees cannot suffer a loss. Five circumstances show that a profit or
loss is possible: the independent contractor hires, directs, and pays
assistants; the independent contractor has his own office, equipment,
materials, or facilities; the independent contractor has continuing and
recurring liabilities; the independent contractor has agreed to perform
specific jobs for prices agreed upon in advance; and the independent
contractor's services affect his own business reputation.
(p)
Termination.
Independent contractors' contractual agreement may be terminated for any reason
by either party upon written notification.
(3)
Responsibility
(a)
Requesting
department.
(i)
The requesting department representative must initiate the
completion of the independent contractor determination form and will forward
all documentation to human resources for approval.
(ii)
The requesting
department representative is responsible for obtaining any supporting
documentation, and attaching it to the independent contractor determination
form.
(iii)
An independent contractor working arrangement will not
be commenced or entered into, without approval from human resources and the
appropriate vice president.
(b)
Independent
contractor.
(i)
The independent contractor will furnish the university with
all applicable contract information.
(ii)
The requesting
department will have a contractual agreement that will be drawn by the
university that will outline the expectations of the university for the
assignment that the independent contractor will undertake.
(iii)
If necessary
the requesting department will secure a confidentiality agreement, signed by
the independent contractor provided by the university.
(iv)
The independent
contractor may not subcontract work without BGSU written
permission.
(c)
Human resources and university counsel.
(i)
Human resources,
in consultation with university counsel, will approve or deny requested
independent contractor employment agreements. No approval will be processed
without the approval of the president or the appropriate vice
president.
(ii)
The purchasing department will be contacted when an
independent contractor employment arrangement has been
approved.
(d)
Purchasing department.
(i)
Purchasing will
be notified by human resources should an independent contractor relationship be
established.
(ii)
The requesting department shall work with purchasing to
ensure all documentation (vendor data form) is completed.
(iii)
Once the
independent contractor has been approved by purchasing as a vendor they will
notify accounts payable of the approval.
(iv)
Purchasing will
determine if the payment to the independent contractor will exceed allowable
limits and thus require a department to go through the request for proposal
(RFP) process.
Date: November 1st, 2013
Disclaimer: These regulations may not be the most recent version. Ohio may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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