Administrative Procedures

Independent Contractor/Employee Classification

1. Purpose

Compliance with IRS Regulations for classifying a worker as an employee or independent contractor.

2. Scope

This procedure applies to all KCTCS employees.

3. Independent Contractor VS. KCTCS Employee

3.1

Independent Contractor:

1. An individual that offers services to the general public on a consistent basis and meets the following guidelines:
   1. Cannot be a current KCTCS employee. 
   2. Provides services through a written scope of work.
   3. Renders services to KCTCS for a specified time period and for a specific amount of compensation.
   4. Performs services for which KCTCS does not have authority to control the methods used to accomplish the results.
2. Payments to Independent Contractors will be classified as 1099 unless the suppliers are incorporated.

3.2

KCTCS Employee:

1. An individual that offers services to KCTCS where an employer/employee relationship exists and meets the following guidelines:
   1. KCTCS has the right to direct and control an individual’s work with details of when, where, and how the work will be accomplished.
2. Payments to KCTCS employees are subject to employment taxes and withholdings.

4. Independent Contractor Status Test

4.1

If the answer “yes” can be applied to any of the following questions, the individual should be classified as a KCTCS employee:

1. Does KCTCS have the right to direct and control the individual in the way they work including the details of when, where, and how the work is performed?
   1. Yes – Employee
   2. No – Independent Contractor 
2. Will the individual performing the work be paid on a guaranteed hourly, weekly, or monthly basis for a specific time period as opposed to completion of work?
   1. Yes – Employee
   2. No – Independent Contractor 
3. Will the individual be provided with detailed instruction or training in the manner or method in which work is to be performed as opposed to general instructions?
   1. Yes – Employee
   2. No – Independent Contractor
4. Will the individual be provided with tools, equipment, or materials necessary to complete the work performed by KCTCS (other than large musical instruments)?
   1. Yes- Employee
   2. No – Independent Contractor
5. Does the person performing the work have the ability to terminate the relationship at will prior to completion without incurring a loss? 
   1. Yes – Employee
   2. No – Independent Contractor

4.2

Questions concerning the determination of independent contractor status should be directed to the KCTCS Director of Procurement to Payment Services.

5. Establishing Approved Independent Contractors

5.1

Independent contractors shall be added to KCTCS supplier database as an approved supplier. 

1. KCTCS utilizes a customized platform to register new suppliers.
2. The cloud-based platform is a supplier registration portal within PeopleSoft and can be accessed at https://systemoffice.kctcs.edu/suppliers/registration.aspx.

6. Student Independent Contractors

6.1

Instances where students provide services to KCTCS and are classified as a supplier shall comply with section 4.1.

6.2

If student is already a student worker (student work study program excluded), the student cannot be an independent contractor and shall be compensated via payroll.