Independent Contractors

Independent Contractors are outside individuals, sole proprietorships or LLCs treated as disregarded entities for federal income tax purposes that provide services to USF.  

An Independent Contractor cannot be current a USF employee, have been terminated from USF employment in the last 12-months or provide services that are otherwise defined under a USF employee classification.  

To determine whether or not an individual is defined as an Independent Contractor or a USF Employee, an Independent Contractor (IC) Worksheet is used.

The requesting Department and prospective Independent Contractor should follow Instructions for thorough and accurate completion of the Independent Contractor Worksheet to allow for seamless processing.

How do I know if the contractor is an LLC, Sole Proprietor or other business structure? 

If in doubt, send the IC Worksheet to your contractor.  They should be able to identify the correct business structure and fill out the form as needed. 

How do I know if the individual/entity qualifies as an Independent Contractor or an Employee? 

USF Departments should refer to the IC Worksheet Instructions for examples of common situations classified as independent contractors (Section III) and USF employees (Section II). Some quick rules of thumb:  

  • Entertainers and guest lecturers ARE generally defined as Independent Contractors. The department should attach the brochure or advertisement (containing the date, time, and nature of event) to the IC Worksheet. 
  • USF employees can NOT be classified as Independent Contractors. 
  • Work that can be defined as clerical or secretarial can NOT be classified as Independent Contractors. 
  • Contractors considered to have an "ongoing" relationship with USF are more likely to be classified as an employee. Examples of ongoing relationships include:
    • Receiving payment on a regular/pay-roll basis (weekly or monthly) 
    • Person has been hired to perform the same service in the past unless they are in the business of supplying that service to other organizations besides USF.  
    • Consultants who work exclusively with USF over an extended period must provide justification/documentation of reason to continue relationship as an independent contractor. 
    • If an ongoing relationship exists, the contractor must provide "proof of business" (business card, brochure, webpage, and/or client list) along with IC worksheet which shows he/she has a business that performs the services provided to USF for others. Proof of business must be attached/included with the IC worksheet submission so all the facts and circumstances can be evaluated. 

Purchasing will work with USF Human Resources and Tax Advisory Services to decide to approve or reject the Independent Contractor request. If denied, the department will be instructed to work with USF Human Resources to put the individual on payroll.

When do I need to submit the Independent Contractor Worksheet? 

The IC Worksheet should be attached to any requisition request or contract request.

Do I need a new IC Worksheet every time?

An IC Worksheet should be signed and dated within the past 12 months.

What competition requirements do I need to follow when sourcing an Independent Contractor?

They are subject to the same Quote Requirements and Purchasing Exemptions Exemptions as other commodities.

What is Proof of Business?

Evidence the contractor provides the service for other customers must be provided. Brochures, business card, web page and/or list of clients/customers are examples of “proof of business”. As an alternative, the contractor may provide a statement attesting he/she has an active business (business card, customer list, etc. is helpful)

What information needs to be included in the Scope of Work?

At minimum, the scope of work should include: Dates of services, Cost of Service, Detailed description of the work to be performed, and/or expected deliverables.

When do I need to have a contract in place for an Independent Contractor? 

When do I need to have a contract in place for an Independent Contractor?  
In general, straightforward, single-service, low dollar services can be processed using a Requisition Request. For complex services, high dollar services, and/or multi-year services, a contract is recommended. 

Is there a template Independent Contractor Agreement that I can use? 

Yes, please visit the Purchasing Forms page. The changes to this template should be restricted to ONLY the name of the Contractor, the length (term) of the agreement, the total cost and the Exhibit A containing the Scope of Work. All other Terms and Conditions MUST remain unchanged. This agreement should only be signed by Procurement Services through the Contracts + module in BMP.

The Contractor I want to work with is not in BMP. How do I request a New Supplier Record?

Departments will submit a NEW Supplier Request Form through Bull Marketplace to have a Supplier Record created.

What if my Independent Contractor is a Non-Resident Alien?

Following the instructions on the A-Z Index page for Non-Resident Alien.