Need Help?

University Business Services
Katie Matzinger
(406) 994-7508
kathryn.matzinger@montana.edu


Should an Individual be treated as an employee or as an Independent Contractor?

When procuring the services of an individual at any dollar level, many factors must be weighed to determine whether someone should be paid as an independent contractor or as an employee.  If determined to be of employee status, Human Resources has a One-Pay option to accommodate this short–term employment.

Some factors include:

  • Is he/she a current or recent MSU employee?
  • Are they being paid hourly and under your direct supervision  (in which case they should be considered an employee).
  • Do they provide similar services for other clients and/or businesses
  • Do they provide their own supplies, equipment, forms, etc. necessary to perform the services
  • Do they maintain worker’s compensation coverage or can establish exemption from worker’s compensation coverage under MCA Section 39-71-401.
  • Many more….

Have individual complete the checklist below.   If they answers No to any of the questions, this form will need to be reviewed by University Business Services to determine if they needs to be treated as an employee.

If they answer yes to all questions, you can just sign the form and submit it with their BPA payment. 

PD-52 Independent Contractor Checklist

 Other Requirements:

  • Contracted services agreement recommended at any $ level, and required above $5,000 for all independent contractors.
  • Do not sign vendor provided agreements without Procurement Services review.
  • Remember to clearly reference Contract# on your BPA or P-Card report.

Note:
All normal procurement procedures must be followed: limited solicitation over $5,000, formal bidding (handled by Procurement Services) over $25,000, or sole source justification if appropriate.