4-09 CON 2 for Approval by Chair.doc

The document outlines the procedures and guidelines for distinguishing between employees and independent contractors to ensure compliance with State and Federal tax laws. It emphasizes the importance of proper categorization to avoid penalties for noncompliance. Factors differentiating between an employee and an independent contractor are provided, such as control over work, equipment provision, termination rights, payment structure, and exclusivity of services. The document also includes steps for departments/offices to follow in determining the classification and handling budget modifications accordingly.