Human Resources

Gazebo outside of Administration Building

Independent Contractors business or individual performing a service

FORMS

To pay an independent contractor for services, complete the online ICP form by following the directions in the ICP Quick Reference Guide and routing an Invoice to Human Resources either electronically or via campus mail.

The Contractor will need to complete:

FORM 1099

After each calendar year, if the independent contractor has performed services in excess of $600, they will receive a Form 1099 from Human Resource Services in January or February.

Independent Contractors

People such as doctors, dentists, veterinarians, lawyers, accountants, contractors, public stenographers, or auctioneers who are in an independent trade, business, or profession in which they offer their services to the general public are generally independent contractors.  However, current LCSC employees cannot be considered independent contractors and must be paid through the State payroll system via a Personnel Action Form.  Please refer to Policy 3.124.

Employee or Independent Contractor?

Employee.  Under Idaho Code Title 72, "employee" is defined as any person who has entered into the employment of, or who works under contract or service or apprenticeship with, an employer.  An employee typically has the following characteristics:

  • Performs duties dictated or controlled by others;
  • Undergoes training for the work to be performed;
  • Works for only one employer;
  • Works a schedule required by the employer; and
  • Is subject to direct supervision by the employer.

Independent Contractor.  "Independent contractor" is defined as "any person who renders service for a specified recompense for a specified result, under the right to control or actual control of his principal as to the result of his work only and not as to the means by which such result is accomplished."  Essentially, an independent contractor is a worker who provides goods or services to another entity under the specific terms of a contract.  An independent contractor typically has the following characteristics:

  • Operates under a business name;
  • Has his own employees;
  • Maintains a separate business checking account; 
  • Advertises his business services;
  • Invoices the employer for work completed;
  • Has more than one employer;
  • Keeps business records;
  • Controls his own schedule and hours; and
  • Controls job accepted, job performance, and how the job is ultimately completed.
Employee Independent Contractor
Works set hours Sets own hours
An ongoing relationship Relationship lasts a limited time
Paid by hour, week, or month Paid by the job performed
Reimbursed for business expenses Responsible for incidental expenses
Facilities and tools furnished by employer Has own facilities and tools
Works for one firm May work for several firms at once
Must render services personally Can subcontract services to another
Regular reports are required Not required to account for actions
Does not solicit for work Solicits for work through advertising
Can be discharged Cannot be terminated except for breach of contract
Can quit Must complete contract or be responsible for failure to do so
No risk of loss or opportunity for profit Has risk of loss and opportunity for profits