The University is committed to following the Internal Revenue Service's determination of independent contractors effective January 1, 2019. Compliance with the 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

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.

Key Resources

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Payroll & Tax Services