Employment Services

Hiring Process

Independent Contractor or USM Employee?

Be aware that you must be careful before you put through a personal services contract to Business Services as the method to pay someone for professional advice (consultant) or to render a service (independent contractor).  There are several federal agencies, especially the IRS, who look very unfavorably on making the wrong decision.  When an individual does not meet the conditions for consultant/independent contractor status, the IRS says an employer/employee relationship exists and they must be paid on payroll.   Failure to do so subjects the University to possible penalties for failure to withhold taxes and to pay social security taxes on that employee.

Since the burden of proof is on the employer, and the rules make it hard to sustain a claim that a person in not an employee (unless it is clear that the person has an independently established business, and the worker is not under the University's essential control), you are advised not to claim independent cotractor status for workers of questionable independence.

For a good summary of the things you need to consider, please use this link to Independent Contract Status.   If you are confident that your particular situation meets the Independent Contractor standard of proof, submit a personal services contract in the manner prescribed by Business Services.  If it does not meet the standard, or if there is significant doubt, then you are advised to handle the position/person as an employee - and use the guidance on this website to hire the employee.



 

 

Last Updated: February 25, 2009

 

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If you have any problems with this page, please contact Linda Boody

 

Alphabetical Index
Application for USM Employment (PDF)
Bargaining Unit Agreements
Benefits
Cast of Characters (Who we are)
Changing Nature of Position
Changing Work Schedule
Conflict of Interest Policy
Directions to USM
Division of Human Resources
Employment Services
Hiring Review Guidelines & Application Form
HR Forms
I9
Immigration
Independent Contractor
Interview Questions - Behavior Based
Job Descriptions - Hourly/Classified
Job Descriptions - Salaried/Professional
Job Openings
New Hire Liaisons
Payscales - Hourly/Classified
Payscales - Salaried/Professional
Position Authorization Form
Position Description Questionnaire (PDQ)
Position Review - Hourly/Classified
Position Review - Salaried/Professional
Post Employment Process
References - Providing
Rehiring USM Employees
Request to Hire Above 1st Quartile
Temporary Hires
Who We Are
Working at USM: A Concise Guide for Employees

The documents and information of Employment Services for the University of Southern Maine are made available on the Internet as a public service. Reliance on such information is at the user's own risk. We will make all reasonable efforts to ensure that the information is accurate and current, but cannot guarantee the accuracy, reliability, completeness or timeliness of information obtained from this Web site and may not be held liable for any losses caused by any person's reliance on such information. Contents at links outside the University of Southern Maine Human Resource Web site are neither created nor endorsed by USM or Employment Services.