Checklist for Independent Contractor Status

This checklist should be completed after reviewing the Independent Contractor Questionnaire submitted by the particular Department seeking to retain an outside service provider to determine whether the provider can properly be classified and approved by Colbyas an independent contractor.

  1. ALL OF THE QUESTIONS IN SECTION A MUST BE ANSWERED “YES.” IF THE ANSWER TO ANY QUESTION IS “NO,” THE PROVIDER CANNOT BE CLASSIFIED AS AN INDEPENDENT CONTRACTOR WITHOUT FURTHER ASSESSMENT/CHANGES.
  1. The provider controls the means and progress of the work except as to final resultsYes No

(as specified in writing between Colby and the provider);

  1. The provider is customarily engaged in an independently established trade, occupation, Yes No

profession or business;

  1. The provider has the opportunity for profit and loss in performing services forColbyYes No

(as specified in writing between Colby and the provider);

  1. The provider hires and pays for his/her assistants (if any), and if such assistants areYes No

employees, he/she supervises the assistants’ work; AND

  1. The provider makes his/her services available to clients or customers besides ColbyYes No

(even if his/her right to do so might not be exercised or may be temporarily restricted by

Colby).

  1. IF THE ANSWERS TO ALL OF THE QUESTIONS IN SECTION A ARE “YES,”THE ANSWERS TO AT

LEAST THREE OF THE FOLLOWING QUESTIONS MUST ALSO BE ANSWERED “YES.” IF AT LEAST

THREE OF THE SECTION B QUESTIONS ARE NOT ANSWERED “YES,” THE PROVIDER CANNOT BE

CLASSIFIED AS AN INDEPENDENT CONTRACTOR WITHOUT FURTHER ASSESSMENT/CHANGES.

  1. The provider has a substantive investment in the facilities, tools, instruments, materials

and knowledge used to complete the work;Yes No

  1. The provider is not required to work exclusively for Colby (although the written Yes No

agreement might temporarily restrict this right);

  1. Colby’s written agreement with the provider specifies that he/she is responsibleYes No

for satisfactory completion of the work and holds him/her responsible if work is not

completed;

  1. Colby’swritten agreementincludes rights in the event the contract is terminated byYes No

either party priorto completion;

  1. Colby’s written agreement spells out payment terms that are directly related to workYes No

performed, not just time expended;

  1. The work is not usually/customarily performed by Colby employees; AND/ORYes No
  1. The provider has been determined to be an independent contractor by the IRS (Form SS-8).Yes No

INDEPENDENT CONTRACTOR STATUS: _____ APPROVED OR ______NOT ELIGIBLE

By: ______Date: ______

Printed Name and Title: ______

NOTE: IF THE PROVIDER AND/OR CIRCUMSTANCES DO NOT SATISFY THE INDEPENDENT CONTRACTOR TEST, CONSULT WITH LEGAL COUNSEL ABOUT NEXT STEPS.

Safeguards to avoid treating independent contractors as employees:

  • A provider previously employed by Colby in the same or similar capacity will almost never be an independent contractor.
  • All independent contractors must have a written agreement with Colby (independent contractor agreement or other written agreement based on the specific circumstances).
  • Do not issue Colby e-mail/access to network without specific project need.
  • Do not issue Colby employee IDs.
  • Do not invite to employee meetings, trainings or events without specific project focus.
  • Do not issue employee handbook (but should require providers to follow policies pertinent to project/work, i.e., nondiscrimination, harassment, confidentiality, etc.).

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