Consultants, Speakers and Other Independent Contractors

Boise State hosts a number of Consultants, Speakers, Interpreters, Game Officials and other professionals that are collectively known as Independent Contractors (ICs). Independent Contractor is an IRS classification of worker and federal guidelines dictate how to determine if workers should be assigned as ICs or employees. Failure to improperly classify workers can result in significant penalties.

Following the IC process protects your vendor as well as Boise State. ICs that are set up correctly prior to their service are paid promptly and seamlessly.

Independent Contractors

Who is an Independent Contractor?

Typically, an independent contractor is an individual who provides professional, creative or technical services to the university for a fee. ICs generally offer their services to others, may work for more than one client at a time, have the ability to select their own clients, provide their own tools and materials and set their own hours and place of work. The exception to this last would be a speaker, as they are often subject to an event or class time.

Who is NOT an Independent Contractor?

Students and current employees must be paid via payroll. Individuals who have been on the payroll within the same tax year or immediately before or after the event that you wish to pay them for, must be paid as employees. Individuals who are being hired to do something that is considered part of Boise State’s “core” business must also be paid as employees. This includes teaching, curriculum development, and research. If we are paying others for work that requires significant oversight and resources from Boise State, they must be paid as an employee. ICs have a US tax filing status of Individual. Foreign individuals are exempt from the classification process.

Common Exceptions

When we classify ICs, we are looking at the overall picture. Someone may originally qualify as an IC but then later may have to be hired as an employee due to the ongoing nature of the work. We are often asked why guest lecturers are allowed IC status since that seems to align with our core business; however, these individuals are presumed to possess advanced knowledge of a particular subject that will enrich a course through specialized knowledge.

Independent Contractor Steps for Success

For Local and Appropriated Funds

Campus completes IRS Classification Request
Campus invites new IC vendors to complete PaymentWorks
Campus provides Accounts Payable with the vendor number. You may find it helpful to include a draft of the Contract for Services (CFS) or Local Engagement Agreement (LEA) at this point. You will need one to request payment and attaching it now allows us to provide input that could save you time later.
Accounts Payable completes final review for worker classification
Campus gathers signatures for LEA or CFS
After service is complete campus pays via Purchase Requisition with the signed LEA or CFS attached for documentation

For Sponsored Funds

Campus completes IRS Classification Request
Accounts Payable performs a pre-check and advises campus within three business days whether to proceed with an IC or employee hire
Campus invites new IC vendors to complete PaymentWorks
Campus provides Accounts Payable with the vendor number and submits a Purchase Requisition with the OSP Contract for Services attachment
Accounts Payable completes final review for worker classification
Campus completes the Sponsored Projects Contract for Services and submits a Purchasing Requisition
Purchasing creates a PO and gathers signatures on the contract
After service is complete campus pays via a Smartsheet “OK to Pay”

Consultants, Speakers and Other Independent Contractors

Independent Contractors

Who is an Independent Contractor?

Who is NOT an Independent Contractor?

Common Exceptions

Independent Contractor Steps for Success

For Local and Appropriated Funds

For Sponsored Funds

Resource Links

Resources and Forms

Frequently Asked Questions

Policy

Procurement and Vendor Services