Independent Contractor/Employee Status Policy

St. Cloud State University (SCSU), is in compliance with the Withholding Division of the Minnesota Department of Revenue, and relevant rules from the Internal Revenue Service Publication 15-A (Rev. January 2001). As an employer, SCSU will generally withhold income taxes, withhold and pay Social Security and Medicare taxes, and pay unemployment tax on wages paid to an employee. SCSU will not generally withhold or pay taxes on payments to independent contractors.

The Internal Revenue publication 15-A requires an analysis of the relationship between the worker/contractor and university based on common law principles. In making the final determination, evidence of control and independence must be established based on behavioral control, financial control, and type of relationship of the parties.

The supervisor of the position being considered for status determination shall complete the Independent Contractor/Employee Status Form for review and determination. The Director of Human Resources will review the form for a final decision whether the work anticipated is designated as performed by an employee or independent contractor.

If the work is designated as performed by an independent contractor, they are generally responsible for providing their own equipment, supplies, and other tools to perform contracted work. Independent contractors may occasionally require minimal SCSU resources, such as email or a temporary storage space. When SCSU resources are needed, supervisors should complete the Independent Contractor Resources Form and route per the instructions in the accompanying Guidance Document.