The process by which an individual is classified as either an employee or an independent contractor has been revised and strengthened to reflect the University's acceptance (as of 1/1/19) of the Internal Revenue Service's definition of independent contractors and guidance for proper classification of these individuals.
The University has committed to accepting the IRS interpretation effective January 1, 2019. This means that beginning January 1, 2019, any current independent contractor falling outside of the new classification must be transitioned to a UVM employee if the department wants to continue to receive services from that individual. Compliance with the new policy determination is critical, as violations may be subject to significant penalties, fines, and interest assessed by the IRS.
The Employee vs. Independent Contractor policy (PDF) changes affect the following:
- Services Agreement template (Word)
- Employee vs. Independent Contractor Determination form
- Any and all contracts with a start date of January 1, 2019 or later