Determination of Status - Employee or
Independent Contractor
For workers' compensation,
unemployment insurance, social security and state and federal income tax
purposes, employment status is defined as either employee or independent
contractor. The legal responsibility for tax withholding and/or
provision of benefits depend on this determination.
Prior to entering into a
contract, departments must determine whether the relationship
with the person or firm providing the service is an employment
relationship or an independent contractor relationship. The following
Independent Contractor Checklist must be completed and if any
questions are answered “NO”, the contractor is not an independent
contractor and must be placed on the College payroll, consistent with
College Personnel policy.
Before issuing a contract for
service, the Business Office and the Payroll Office must be
consulted to determine the correct classification for a work
relationship. While each situation must be considered on its own
merits, the decision process should be a joint effort to insure all
factors are considered and to insure consistency in the evaluation
process.
Montana Code Annotated
39-71-120. Independent contractor
defined.
(1) An "independent contractor" is one who renders
service in the course of an occupation and: (a) has been and
will continue to be free from control or direction over the
performance of the services, both under the contract and in
fact; and (b) is engaged in an independently established trade,
occupation, profession, or business.
(2) An individual performing
services for remuneration is considered to be an employee under this
chapter unless the requirements of subsection (1) are met.
Questions?
Email
businessoffice@msubillings.edu |
