
An independent contractor is a person who is contracted to perform services without having the legal status of an employee. Requests for these services using sponsored and non-sponsored Research Foundation (RF) funds are submitted through Research Foundation Human Resources to determine classification as an independent contractor. Payment for independent contractors is processed through the ShopBlue e-Procurement System.
The procedures on this page apply to independent contractors paid with sponsored and non-sponsored RF funds only. A different process is followed when using state and UBF funds. Learn about the independent contractor procedure for UBF funds and the honoraria process for state funds.
Independent Contractors (IC) are generally individuals who follow an independent trade, business or profession in which they offer their services to the public and complete such services free of control or direction from the payer as to the means and methods used to complete the task. Under the Internal Revenue Service (IRS) general rules, even if you choose not to exert control over what the worker does and how the worker performs the services, the ability to do so generally points to an employee relationship, not that of an IC.
Independent Contractors are not individuals who are already Research Foundation employees, or who have been or will be within the same calendar year. Employees who perform a task that is different from their regular duties, and after normal work hours, are eligible for overtime pay, extra service or dual employment.
The IRS uses the 20 Factors of the Common Law Test to determine whether an individual is an employee or an IC. These 20 factors or 20 questions assist in determining if a relationship or evidence of control/right to control (behavioral and financial) exists between the payer and worker.
It is illegal to knowingly classify an employee as an independent contractor in order to avoid Affirmative Action recruitment efforts, and or payment of employment taxes, fringe benefits, etc. The IRS imposes fines and penalties for misclassification of service.
Liability may include payment for:
If found to be a criminal matter, imprisonment is possible.
Under IRS rules, anyone who performs services for you is your employee if you can control what will be done and how it will be done, even if freedom of action is granted to the individual worker.
A worker may always be classified as an employee even if the worker meets the criteria of an IC.
Regular purchasing procedures apply if UB is paying a company, or an employee of a company.
The Internal Revenue Service generally considers a worker to be an independent contractor (IC) if the person:
The Internal Revenue Service generally considers a worker to be an employee if the person:
Purchasing and Contract Services will process Independent contractors paid with sponsored or non-sponsored RF funds. Prior determination for the independent contractor will be needed in the form of a Purchase Order (PO) using the procedures in this section.
University at Buffalo
Accounts Payable
206 Crofts Hall
Buffalo, NY 14260
Previous classification of an independent contractor request does not indicate that the current request will also be approved.
If individual is determined to be an independent contractor by RF HR, payment options for independent contractors include:
Robert Palmer
Director
Research Foundation (RF) Human Resources
Phone: 716-645-4476
Email: rp9@buffalo.edu
Brendan Davis
Accounting: Non-sponsored RF
Financial Management
Phone: 716-645-2602
Email invoices and payment related inquiries to: icinvoice.ap@buffalo.edu