Independent Contractor vs. Employee Worksheet Analysis

Complete this worksheet and hit the submit button to send the data to the Accounting Office. The Accounting Office will respond via email with a recommendation that the worker's status should be treated as either an independent contractor or employee.

Information about Worker

Individual     Sole Proprietor     Corporation

Name of Worker

Multiple Relationships with the University

1. Is this individual on record as a current employee with the University?

Yes     No
If no, is it expected that the University will hire this individual as an employee following the termination of service?
Yes     No     N/A
2. Was the individual a University employee anytime during the last year and did he or she provide the same or similar services while an employee?
Yes     No

IRS Classification Factors

Before a worker is hired as an independent contractor, the folowing checklist should be completed to help determine whether an employer/employee relationship exists:


Right to direct and control details and means by which worker performs services.

1. Instructions. Will the University have the right to give the worker instructions about when, where, and how he or she is to do the job?

2. Training. Will the worker receive training from the University?

Right to direct and control economic aspects of the worker's activities.

3. Significant investment. Has the worker failed to invest in facilities (such as office) used to perform services?

4. Payment of Expenses. Will the University pay the worker's business or travel expenses?

5. Services Available. Does the worker not make his or her services available to other employers?

6. Payment by Hour, Week, Month. Will the University pay the worker by the hour, week, or month rather than by commission or by the job?

7. Realization of Profit or Loss. Will the arrangement prevent the worker from realizing a profit or suffering a loss?

Intent of parties concerning status and control of worker.

8. Written Contract. Will a written contract not be executied describing the worker as an independent contractor?

9. Employee Benefits. Will the worker receive any employee benefits?

10. Right to Terminate. Could the University terminate the worker at any time without incurring liability?

11. Regular Business Activity. Is the work to be performed part of the regular business of the University, such as teaching or research?

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Last Updated: Friday, 01-Apr-2011
Published by Accounting
North Dakota State University
North Dakota State University
Old Main 11
NDSU Dept 3100 - PO Box 6050 - Fargo, ND 58108-6050
Phone: (701) 231-8411 - Fax: (701) 231-6194