Update: Workers Classification Procedure

April 1st, 2013 by Tracy Snowberger

Workers Classification Procedure: Employee vs Independent Contractor

Please be advised that effective April 1, 2013, Loyola University has instituted a new Workers Classification Procedure. The purpose of this procedure is to formally document the proper steps for requesting and classifying a worker as an Employee or an Independent Contractor. The overlying baseline for this process is that all individuals that provide a service to Loyola University are first and foremost considered employees unless a justification can be made to the contrary.

This new procedure sets forth the documentation required to request a proper classification from Human Resources (HR) and Disbursement Services (DS). All required documentation must be completed and provided to HR and DS for review before the commencement of any engagement or before any service is provided. In addition, the procedure documents the evaluation criteria that each “worker” will undergo to determine the proper classification. This will also determine the proper tax reporting classifications and documents the tax notifications that each “worker” will receive as a result of their status.

Once each worker is satisfactorily documented and once classification is determined, the individual will be set up in the appropriate system (HR System for Employees and AP Vendor Master for Independent Contractors). Each IC will be tracked to ensure that current approved and certified documentation is on file before any payments are made.

In order to properly implement this new procedure, HR and DS will be hosting training sessions at the following locations and times.

Health Sciences Campus: Monday, April 22, 2013 at 2:30-3:30 in SSOM-150

Water Tower Campus: Wednesday, April 24, 2013 at 2:30-3:30 in Corboy-Kasbeer Hall (15th floor)

Lake Shore Campus: Wednesday, May 1, 2013 at 2:30-3:30 in Simpson Living/Learning Center Multipurpose Room)

We will also be streaming the Wednesday, May 1, 2013 Lakeshore training live and will subsequently make a recording of this session available on our website. More information on how to access this stream will be made available soon.

Copies of the updated procedure and revised forms (both in Formatta and Microsoft Word formats) can be found attached and will soon be available on the Accounts Payable website:  http://www.luc.edu/finance/.

If you should have any questions, please feel free to Contact Deborah Meister at dmeister@luc.edu or Brian Slavinskas at bslavin@luc.edu.

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