There are special financial parameters for involving independent contractors in research as they are paid through contractual agreements.
NEW - Important Information for Investigators with International Collaborations
There are special financial parameters for involving independent contractors in research as they are paid through contractual agreements.
Consultants are assumed to be Independent Contractors with defined tasks and benchmarks. They may not have a continuing involvement in a project and should not require significant supervision. Consultants are neither employees nor Fellows. They are paid through contractual agreements in which the services they provide are detailed. Since their relationship to a project is contractual, the selection of specific consultants is governed by processes more like the purchase of goods and services than the process by which employees are hired, or Fellows appointed.
Consultants understand the following conditions describing their relationship with The Research Foundation of the State University of New York:
The IRS uses a series of 20 Factors of the “Common Law Test” to determine whether an individual or group of individuals meets the legal requirement to be considered a consultant. For additional information on this topic, see the Quickguide for using Consultants/Independent Consultants.
Recent changes in IRS regulations governing payments and related income tax withholding to non-resident aliens has caused an additional administrative burden to be placed on campus departments.
Care must be taken to ensure that non-resident aliens are eligible to receive payments for work performed in this country (based on Immigration and Naturalization Service regulations) and that if eligible for payment, can legally be exempt from the 30% federal withholding tax.
If you are planning such an engagement and are not familiar with these requirements, it is important that you contact your Grants Specialist prior to engaging the consultant. Certain essential documents can only be obtained when the consultant/lecturer first enters the United States.
Related Link: Independent Contractor/Lecturer Services form.
If you would like additional information please contact your Grants Management Specialist at 632-9038.
For matters pertaining to non-resident aliens, please contact Susan Gasparo, Phone (631) 632-1954
All of the following factors must be considered in determining whether an employment relationship exists:
Stephanie Ammann
Assistant Director, Sponsored Project Expenditure Phone: 631-632-9071 |