Independent Contractor Versus Employee
Common Law Rules
To determine whether an individual is an employee or an independent contractor under the common law, the relationship of the worker and the business must be examined. All evidence of control and independence must be considered. In any employee-independent contractor determination, all information that provides evidence of the degree of control and the degree of independence must be considered. Facts that provide evidence of the degree of control and independence fall into three categories:
Facts that show whether the business has a right to direct and control how the worker does the task for which the worker is hired include the type and degree of instructions and training.
- Instructions the business gives the worker. An employee is generally subject to the business' instructions about when, where, and how to work.
- When and where to do the work
- What tools or equipment to use
- What workers to hire or to assist with the work
- Where to purchase supplies and services
- What work must be performed by a specified individual
- What order or sequence to follow
The amount of instruction needed varies among different jobs. Even if no instructions are given, sufficient behavioral control may exist if the employer has the right to control how the work results are achieved. A business may lack the knowledge to instruct some highly specialized professionals; in other cases, the task may require little or no instruction. The key consideration is whether the business has retained the right to control the details of a worker's performance or instead has given up the that right.
- Training the business gives the worker. An employee may be trained to perform services in a particular manner. Independent contractors ordinarily use their own methods.
Facts that show whether the business has a right to control the business aspects of the worker's job:
- The extent to which the worker has unreimbursed business expenses. Independent contractors are more likely to have unreimbursed business expenses than are employees. Fixed ongoing costs that are incurred regardless of whether the work is currently being performed are especially important. However, employees may also incur unreimbursed expenses in connection with the services they perform for their business.
- The extent of the worker's investment. An independent contractor often has a significant investment in the facilities he or she uses in performing services for someone else. However, a significant investment is not necessary for independent contractors status.
- The extent to which the worker makes services available to the relevant market. An independent contractor is generally free to seek out business opportunities. Independent contractors often advertise, maintain a visible business location, and are available to work in the relevant market.
- How the business pays the worker. An employee is generally guaranteed a regular wage amount for an hourly, weekly, or other period of time. This usually indicates that a worker is an employee, even when the wage or salary is supplemented by commission. An independent contractor is usually paid by a flat fee for the job. However, it is common in some professions, such as law, to pay independent contractors hourly.
- The extent to which the worker can realize a profit or loss. An independent contractor can make a profit or loss.
Type of Relationship
Facts that show the parties' type of relationship include:
- Written contracts describing the relationship the parties intend to create.
- Whether the business provides the worker with employee-type benefits, such as insurance, a pension plan, vacation pay, or sick pay.
- The permanency of the relationship. If you engage a worker with the expectation that the relationship will continue indefinitely, rather than for a specific project or period, this is generally considered evidence that your intent was to create an employer-employee relationship.
- The extent to which services performed by the worker are a key aspect of the regular business of the company. If a worker provides services that are a key aspect of your regular business activity, it is more likely that you will have the right to direct and control his or her activities. This would indicate an employer-employee relationship.
Additional pay is for contractual pay, overload pay, extra pay for graduate teaching assistants or graduate research assistants and faculty award payments. See additional information on the instructions for Additional Pay.
Longevity bonus payments for each pay period may be viewed in HRIS by running the Longevity Bonus (Classified) Report (pdf), the path to the report is Compensation > Base Compensation > Longevity Bonus > Classified Longevity Bonus.
Supplemental payrolls are used to pay an employee who was not paid or who was underpaid on the regular payroll.
To request supplemental paychecks for non-exempt employees, the department must submit to Payroll and Employee Data a State of Kansas Time and Leave Document signed by the employee and the supervisor. If the total number of hours on the Time and Leave Document is less than ten and adding them to the next regular payroll would not create an overtime situation, then add these hours to the next regular payroll time and leave. It is imperative to note on the timesheet when time was worked versus when time was paid.
To request supplemental paychecks for exempt employees, the department must submit the Supplemental Pay Form (PER-8) to Payroll and Employee Data.
Pay & Benefit Rates
Pay Rate Changes
Hourly Student, Graduate Student, and Unclassified Temporary Employees
- Pay rate changes may be entered in HRIS by departmental personnel following the Pay Rate Change (pdf) instructions. It is recommended that changes in rates of pay are to be effective only at the beginning of a pay period.
- The wage rates for hourly student employees must meet or exceed the Kansas State University minimum wage of $7.25 per hour. Changes to the federal minimum wage and subsequently the K-State minimum wage will be automatically updated in HRIS. Notices will be sent to departments when hourly student pay rates are increased due to a change in the minimum wage.
- Compensation Rate Review Report (pdf)
Unclassified Faculty and Staff
- Mid-year base salary increases
- Salary Increases for Fiscal Year
- Each college or division is responsible for determining the unclassified employees eligible to receive a pay increase. The effective date for eligible 12-month benefit eligible unclassified employees for FY 2015 is June 8, 2014. The effective date for eligible 9-month benefit eligible unclassified employees is August 17, 2014. Nine month unclassified employees working on summer school/summer appointments will receive the salary increase June 8, 2014. If they are not working during the summer, they will receive their increase in August.
- The "Unclassified Salary Increase" page will again be used to automate the salary increase process for employees on budgeted appointments. The deans' offices and other major administrative units are responsible for entering the salary increase information into this page indicating effective date, reason for increase and new salary information. This information will be used to update the Budget data and enable salary increases to be updated automatically into HRIS. HR staff will provide each dean's office with listings of those individuals receiving salary increases. Departments are then able to verify and make corrections, if necessary, to this information.
Instructions for HRIS
- Attach Position Funding (pdf)
- Maintain Position Funding (pdf)
- Payroll Transfers (pdf)
- Processing Funding Updates Fiscal Year
- Retroactive Funding-Add (pdf)
- Retroactive Funding-Correction (pdf)
- Payroll Payments (KSU) (pdf)
- Position Funding by Department Report (pdf)
- CWSP Distribution (College Work Study Program Distribution) (pdf)
- Department Level Funding (pdf)
- How Employee Was Funded (pdf)
- Grid for Payroll Payments by Account (pdf)
- Health Savings Account Grant Funding Report (pdf)
- Monthly Payroll Payments by Account (pdf)
- Payroll Payments by Account Security Report (pdf)
- Position Funding by Account (pdf)
- Position Funding by Department (pdf)
- Position Funding by End Date (pdf)
- Position Funding GRA/GTA (pdf)
- Project Award End Date Report (pdf)
- Who on Account (pdf)