Employee or independent contractor? The IRS has focused on this issue and given high priority to the classification of employment relationships. The penalties for misclassification can result in the university being held responsible for under-payment of taxes including federal and state income tax, Social Security and Medicare taxes, and federal unemployment taxes. Whether inadvertent or intentional, misclassification of workers as independent contractors may result in charges to the department for the taxes, penalties, and interest.
Human Resources has provided guidance about independent contractor designation in the guidelines to the right. The Independent Contractor Form (ICF) must be submitted and approved by Human Resources before the individual can do any work.