- All independent contractors must be paid through a
purchase order with new screening criteria to determine
if the proposed independent contractor meets IRS qualification
standards.
- PO's will not be processed if answers to the screening
questions indicate that the independent contractor would
likely be considered an employee.
- Independent contractor PO's will go through an annual
renewal process.
- In general, employees cannot become independent contractors
to their former employers within one year of termination
of their employment.
- All independent contractors must sign the employer's
standard professional services agreement and obtain
appropriate signatures.
How do you manage the Independent Contractor Relationship?
If you...
Give instructions
Sponsor training
Set work hours
Require continuous full time work done on site
Set the sequence of work
Provide equipment to get the work done or
Require regular reports….
then you should probably be dealing with an employee,
not an independent contractor.
What Options do You Have?
Option One: Change
the nature of the engagement to meet the IRS qualification
standards.
Option Two: Hire
the independent as an employee of your company.
Option Three: Find
an outside company or temporary agency, such as Duran
HCP, who will hire your worker as their employee, handle
all payroll taxes, and "lease" the worker back
to you.
The outside company you work with must be reputable,
financially solvent and carry the requisite appropriate
insurance policies. Your purchasing department has reviewed
and identified companies that meet these requirements.
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