Information for Independent Contractors
Independent contractors are not subject to the same withholding requirements as employees. Due to this difference, the IRS has placed significant importance on the proper classification of workers. The UW requires departments to provide appropriate documentation to ensure that workers are properly classified as employees or as independent contractors.
Factors that the IRS considers in reviewing classification are Behavioral Control, Financial Control and Relationship of the Parties. For additional information please see the IRS website.
Generally, employees will always be paid through the payroll system even if the duties they perform are unrelated to their primary role.
Current UW policy is that an individual who has been classified as an employee in the UW payroll system cannot be hired as an independent contractor in the same calendar year that the individual was an employee with the University, unless the independent contractor work is not in any way the same or similar to the work performed as an employee. Individuals should work with the Department wishing to hire them to complete the Form 1631 or Form 1632 to determine their eligibility to work for the UW as an independent contractor.
Important Change to 1099 MISC Reporting for Tax Year 2013
Beginning in Tax Year 2013, ALL payments made to 1099 reportable suppliers (including travel expenses) will be reported on Form 1099 MISC. The forms will be distributed in January of 2014. Suppliers will be responsible for deducting any associated expenses on their tax return, if applicable, and should retain all original receipts in order to do so.
The particular department you are working with may require copies of receipts to be submitted for varification purposes.