Employee or Independent Contractor?
Overview
Any individual performing services for Marquette and receiving compensation is considered an employee
under the law, unless that individual qualifies as an independent contractor. Marquette uses an
Independent Contractor Verification Form to determine whether an individual performing services for the
university may be treated as an independent contractor. The Form must be completed by the person who
is to perform the services for each such contract.
Current Employees
Special rules apply to employees of Marquette University. If the services to be performed are related in
any way to the employee’s job responsibilities, then an independent contractor arrangement is not
permitted. In that case, any amounts paid to the employee above and beyond his or her regular wages
must be paid as wages through Payroll. If the services to be performed are unrelated to the employee’s
job responsibilities, an independent contractor arrangement for those services is permitted.
Honorariums and Reimbursements
Honorariums and reimbursement of expenses are not considered a “contract for services”. As such, an
Independent Contractor Verification Form is not required for these type of payments.
How to Complete the Independent Contractor Verification Form
Section 1 of the Independent Contractor Verification Form
A contract for services designates the specific person or persons who are
responsible for doing the contract work.
The contract for services is with an individual person using his or her Social
Security Number (SSN) as the tax identification number, or is with an
individual using a “Doing Business As” name using the individual’s SSN as the
tax identification number, or the business is a sole proprietorship or an
unincorporated association using the individual’s SSN as the tax
identification number.
YES
NO
YES
NO
If the answer to BOTH questions is “YES”, then the person filling out the Form should proceed to Section
2 of the Form. If the answer to one or both questions is NO, the remainder of the Form does not have to
be completed. Submit the signed Form and follow UPP 1-06’s other requirements.
Section 2 of the Independent Contractor Verification Form:
The Contracting Party holds or has applied for a Federal Employer Identification
Number with the Internal Revenue Service (IRS).
If "Yes", provide the following information:
* Federal Identification Number:
-
YES
NO
YES
NO
* Name on file with the IRS for the above number: _____________________
The Contracting Party has filed (1) an income tax return in the name of the
business or (2) an individual income tax return with the IRS that includes selfemployment
tax liability based on services substantially similar to those required
above number:
by Marquette for the last tax year for which the initial filing deadline has passed.
If the person performing the services has an FEIN, and that number is provided, s/he does not need to
complete the remainder of the Form. A Form W-9 with the name on file with the IRS associated with the
FEIN and the FEIN will also have to be obtained and submitted to Purchasing when the contractor is added
to the supplier database. Otherwise, complete the form.
Section 3 of the Independent Contractor Verification Form
The Contracting Party will provide its own office space, equipment, and
materials in connection with the performance of services for Marquette. The
Contracting Party understands that there will not be any direct reimbursement
by Marquette for those costs under the contract for services.
YES
NO
The individual performing the services received a Form W-2 for income paid to
the individual by the Contracting Party, or has paid self-employment tax, in the
individual’s last tax year for which the initial filing deadline has passed.
YES
NO
No day-to-day direction from Marquette employees is required to complete the
services.
YES
NO
The contract for services specifies the exact amount of money that the
Contracting Party will be paid for the services and does not provide for
compensation based on hours worked or a specific amount to be paid per day,
week, or month.
YES
NO
The contract for services specifies or references deliverables or objective
criteria for determining if the services has been performed satisfactorily.
YES
NO
The Contracting Party has recurring business liabilities or obligations.
YES
NO
The Contracting Party could possibly suffer a financial loss in performing the
contract for services.
YES
NO
The Contracting Party has in the past, or expects in the future, to provide
similar services to clients or entities other than Marquette University.
YES
NO
If the answer to any of the questions in the previous section is NO, the individual providing services must
be engaged as an employee through the Office of Human Resources or a temporary employee through
Stivers, unless specifically approved by the University Office of General Counsel.
If the answer is Yes to all the above questions, the supplier should sign the form and it should be provided
with the PO or with the request for payment.
Helpful hints
Although the person providing the services is required to complete the Independent Contractor
Verification Form, the following information can be shared to assist in the completion of Section 3.
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
Speakers will typically be able to answer YES to all of the questions in Section 3 of the Form once
Sections 1 and 2 of the Form are completed appropriately.
If the person providing the services has provided a written proposal specifying the activities to be
performed and any deliverables, then “no day-to-day direction from Marquette employees is
required to complete the services.”



If the person providing the services provides similar services to entities other than Marquette, or
actively markets in order to do so, then the person providing the services “has recurring business
liabilities or obligations” and “has in the past, or expects in the future, to provide similar services
to clients or entities other than Marquette University.”
If the person providing the services is being paid a fixed amount plus expenses and not an hourly
rate, then the person providing the services “could possibly suffer a financial loss in performing
the contract for services.”
If the person providing the services wants to obtain an FEIN, that can be done online at
o
o
http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Apply-for-anEmployer-Identification-Number-%28EIN%29-Online
An FEIN takes about three days to receive and is free of charge.
Treatment of Individuals Providing Services Who are Not Independent Contractors
Speakers who do not qualify as independent contractors but are employees of other academic institutions
can contract in the name of their employers, using the employer’s FEIN. The funds, less withholdings, can
then be paid to the speaker by the academic institution or credited to other accounts as the rules of that
academic institution might provide, such as a faculty member’s travel or professional development
accounts.
If the work to be performed is temporary in nature, then another option is to hire that individual as a
“loaned employee” through Stiver’s Staffing Services. Individuals who are hired through Stiver’s Staffing
Services become temporary employees of Stiver’s Staffing Services who are assigned to Marquette to
perform services. These temporary employees fill out timesheets, which have to be signed by the
Marquette supervisor that are then sent to HR. Human Resources will forward the timesheets to Stiver’s
at the end of each week.
Operating budgets are used to pay expenses to Stiver’s, not salary dollars, since the university contracts
with the staffing service and not the individual. Stiver’s Staffing Services will invoice Marquette for a 25%
fee on top of the person’s salary. Individuals who are hired through Stiver’s must visit the Stiver’s office
on Mayfair Road to complete hiring paperwork prior to beginning assignments with Marquette. Further
information can be obtained from Human Resources.