Worker Status - Independent Contractor-Employee (BF-11, Rev 1)BF -11.0 PURPOSE:
ADMINISTRATIVE POLICIES SUBJECT:
AND PROCEDURES Worker Status - Independent
MANUAL Contractor /Employee
NUMBER: REVISIONS: EFFECTIVE DATE: PAGE: 1 OF 1
BF -11 1 1 September 15,
SUPERSEDES: APPROVED BY j),
BF -11, Rev. 0
(April 24,
1989) Donald Cooper, City M
To provide guidelines for the determination of worker status, as it applies to independent
contractor /employee.
BF -11.1 PROCEDURE:
The Internal Revenue Service uses common law rules to determine whether an individual is an employee
or independent contractor. Under common law, one must examine the degree of behavioral control, the degree
of financial control, and the relationship between the parties. An evaluation must be made on a case -by -case
basis to determination if an employer /employee relationship or an independent contractor relationship exists.
Human Resources will review each case and will decide if IRS Form SS -8 ( "Determination of Worker
Status for Purposes of Federal Employment Taxes and Income Tax Withholding ") needs to be completed in order
to have the IRS make the correct determination.
If it is determined that the proposed position /worker has an employee relationship, the employee will
follow all new hire policies and must be added to the payroll system to ensure proper reporting of wages and
taxes.
If it is determined that the proposed position /worker is an independent contractor, Human Resources
will notify the Purchasing Department to ensure a vendor application form and W -9 form are received from the
new independent contractor. All independent contractors will be paid through Accounts Payable to ensure they
are included for 1099 reporting purposes, if necessary.