It is critical that Bowdoin correctly classify individuals providing services to the College as either employees or independent contractors. Generally, the College must withhold taxes on wages paid to employees; the College is NOT required to withhold taxes on payments to independent contractors. The IRS and other government agencies assess significant penalties if employees are misclassified as independent contractors. To ensure compliance, please refer to the new Independent Contractor policy below PRIOR to signing an agreement for services.
Service provider classification is based on facts and circumstance; no one fact determines service provider classification. The IRS currently emphasizes three broad categories: behavioral control, financial control, and the overall relationship.
The department head or supervisor is responsible for completing the following steps when procuring an individual's services, (if not covered by the chart below) before any services are performed:
The following are Independent Contractors that are exempt from Independent Contractor Review:
|Type||IC Review Required?||Written Agreement Required?|
|Guest Lecturer||No||No (Note: Invoice backup for Accounts Payable will be required.)|
|Honorarium||No||No (Note: Invoice backup for Accounts Payable will be required.)|
|Human Subject Fee||No||No|
|Translator: Foreign Language||No||Yes|
|Translator: Hearing Impaired||No||Yes|
|Writer – an article for scholarly publications, Bowdoin magazine, museum catalog||No||Yes (Contract should contain language regarding intellectual property. Contact Meg Hart with questions.)|
|Photographers||No||Yes (Contract should contain language regarding intellectual property. Contact Meg Hart with questions.)|