Independent Contractor Guidelines
Independent Contractors and Consultants
When contracting with an individual for services, the District must establish the nature of the employment relationship. This should occur prior to any services being performed and the issuance of any payment. Once the legal relationship is determined, the method of payment is prescribed by law. The problem occurs in the area of who is or is not an employee. There is no clear-cut definition of what constitutes an employee. Instead, there are the 20 common factors that must be analyzed to make the determination.
For more information on hiring an Independent Contractor/Consultant, please refer to the documents listed below:
Who is an Independent Contractor?
According to the Employment Development Department of the State of California, an independent contractor is the following: “A service-provider is defined as an independent contractor; an independent contractor is any individual or sole proprietor who is not an employee of the service-recipient for California purposes and who receives compensation or executes a contract for services performed in or outside California.”
The Internal Revenue Service’s description is: “A general rule is that the tax exempt organization, as the payer, has the right to control or direct only the result of the work done by an independent contractor, and not the means and methods of accomplishing the result.”
Any independent contractor/consultant working for the District is required to have a Vendor Identification Number. All three of the documents listed below should be completed and forwarded to your assigned Buyer in the Purchasing Department at the District Office prior to receiving the vendor number.