It is important that the individual is classified properly before committing payment. Tax laws regarding this topic are subject to interpretation. The IRS levies costly fines and penalties if it determines that an individual should have been paid as an employee and the organization paid the individual as an independent contractor. All the facts and circumstances of a particular situation must be taken into account in determining whether an individual worker should be processed as an employee or as an independent contractor. The IRS stresses that the degree of importance of each factor varies depending on the occupation and the factual context in which services are performed.
Consultants are individuals who provide professional advice.
Their particular skill or knowledge is not available within the University. They are paid contractually through the Business Office. For non-salaried individuals, overtime concerns must be considered when making payments to the employee. If there are any questions on interpretation, please call the Payroll Office. Payments to actors and directors involved with the Shakespeare Festival.