Accounts Payable

Employee vs. Independent Contractor

The following are guidelines for distinguishing between ‘employee’ and ‘independent contractor’ and safeguarding the University and its employees from potential liability related to incorrect classification.

It is the department’s responsibility to ensure the appropriate evidence has been gathered to support the position that the University has engaged an independent contractor.

The Independent Contractor Determination form can help in determining the correct classification.

Complete the form and submit to Lisa Ripplinger, Controller - NDSU Accounting Office, for review.

If it is determined that the classification is ‘independent contractor’ the department will need to complete a Contract Service Agreement, before any services are performed, and submit to the Purchasing Office for approval. When the service has been completed, the approved Contract Service Agreement will need to be attached to an Accounts Payable Voucher and submitted for audit, entry and payment processing.

If it is determined that the classification is ‘employee’, the payment will be made via payroll, and the department will need to contact the HR/Payroll Office.

Independent Contractor Determination Form

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