Generally, individuals providing agricultural labor to the University are employees hired as non-student hourly personnel
subject to withholding of payroll taxes, Medicare and Public Employee's Retirement Association contributions. However,
a special provision in the Internal Revenue Code of 1986 states that if a crew leader (1) furnished agricultural labor to the
University, (2) pays the workers either on his own behalf o r on the behalf of the University, and (3) is not designated as
the University's employee in any written statements between himself and the University, then the laborers are
employees of the crew leader rather than the University. The crew leader is an independent contractor under these
circumstances. It is the responsibility of the crew leader to collect, pay over and report payroll taxes of the laborers.
Crew leaders may be paid, as any other independent contractor, through the Accounts Payable Section or they may be
General Provisions, Page 4
Section 1: Общие положения
paid from special operations imprest bank accounts. If payment from an imprest account is contemplated, please refer to Financial Policy and Procedure Instruction Manual, Number 15.00 "Special Operations Imprest Bank Account."
Independent Contractors
1. General
Careful distinction must be made between work which should be accomplished by employees on the University
payroll or by individuals or firms on a personal services contract (verbal, letter or formal). Since there are numerous
employer-employee obligations as well as independent contractor liabilities, the individual's status should be carefully
considered and cases of doubt resolved in favor of the employee classification. An erroneous classification as an
independent contractor can result in serious penalty to the University for failure to deduct withholding taxes. In some
circumstances, the University contracting officer should require a certificate of insurance coverage to not only relieve
the University of liability, but to further establish a valid independent contractor relationship.
Work may be undertaken as an independent contractor only when the individual or firm is as defined below and is not
an employee of the University, unless specific exception is provided by the Executive Director and Chief Human
Resource Officer of the Human Resources Department.
2. Definition of an Independent Contractor
An independent contractor, for the purposes of this manual, is defined as an individual or firm who performs personal
services and who:
1. Retains the right to decide the way in which final results are achieved and the details of when, where
1. and how the work is to be done, and also
2. Receives no benefits, directly or indirectly, that accrue to University employees. For example, the
2. individual(s) is not covered by the University for workers ’ compensation covering personal injury, for
2. public liability covering injury to others, or for unemployment compensation.
3. The above factors are controlling.
In addition an independent contractor generally:
1. Provides own tools and materials.
2. Has a place of business and a business listing in a directory where the services are offered to the public.
3. Agrees to perform specific services for a fixed price.
4. Is free to work for any one or more clients during any given interval.
3. Performing Artists, Athletic Officials and Consultants
Employment of performing artists, athletic event officials and consultants is covered in the Purchasing Manual.