Independent Contractors

Directive Statement

Independent contractor classifications are handled by both Accounts Payable and Payroll Services.  Any individual that was paid through the Payroll will not be allowed to be paid as an independent contractor.

Reason for Directive

Before tax-exempt organizations, such as the university, can determine how to treat payments for services rendered, the university must first know the business relationship that exists between the organization and the person performing the services.  In determining whether the person providing the service is a common law employee or an independent contractor, all information that provides evidence of the degree of control and independence must be considered.

The university can be held liable for employment taxes, plus interest and penalties, if a worker is incorrectly classified as an independent contractor.

Who must comply?

All UF departments.

Procedures

1. Attach the completed Supplier Tax Information Form (formerly the Consulting and Professional Services Worksheet) to the Disbursements Supplier Maintenance team through filling out the Contact Form or via fax at (352) 392-0081
2. This form will be used by Payroll Services to establish that the independent contractor is not a university employee
3. Once the form is processed by the Supplier Maintenance Team, the vendor’s file will be update
4. A new Supplier Tax Information Form must be submitted each calendar year per IRS guidelines

Last Reviewed

03/31/2023: reviewed content

Resources

IRS Exempt Organizations: Independent Contractors vs. Employees

IRS Publication 15 (Circular E), Employer’s Tax Guide

IRS Publication 15-A, Employer’s Supplemental Tax Guide

UF Procurement – Independent Contracts/Consultants

Contacts

Contact Form

Payroll Services: (352) 392-1231

Disbursements: (352) 392-1241

Procurement: (352) 392-1331

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