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:

FAQs

When did the paper EIC form expire? 

As of December 15, 2019, only the electronic form is accepted for consideration.

I'm not sure of the status of one of my current contracts. What should I do?

What if we’ve categorized this person as an independent contractor for years?

UVM is still legally obligated to follow these rules, and would pass the tax penalty on to you.

What if the worker has asked to be categorized as an independent contractor?

UVM is still legally obligated to follow these rules, and would pass the tax penalty on to you.

What if the worker is funded by grant money?

UVM is still legally obligated to follow these rules, and would pass the tax penalty on to you.

What if we don’t have money in the budget to pay the person as an employee?

UVM is still legally obligated to follow these rules, and would pass the tax penalty on to you.

What if the worker taught a class but only for a few weeks?

UVM is still legally obligated to follow these rules, and would pass the tax penalty on to you.

What if the worker wants to be paid as an independent contractor through their sole proprietorship?

UVM is still legally obligated to follow these rules, and would pass the tax penalty on to you.

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