Independent Contractor Agreement Procedures

Definition

Independent Contractor Questionnaire: Human Resources Approval Form – to be completed first.

Independent Contractor Agreement : Contract between the University and a non-Michigan Tech employee which details the service.  

Procedure

Whenever a service is to be performed by an individual, do the following:  

1. Complete the Human Resources Independent Contractor Questionnaire available on the HR Employment website and submit to Human Resource for determination and approval:
• An independent Contractor cannot be a Michigan Tech employee, nor be providing services currently being performed by a Michigan Tech employee.  
• If the individual is a Michigan Tech employee performing services outside their normal position, the individual must be hired as a temporary employee with a second position. Temporary Employment Authorization Form  
• If the individual is performing services that are currently being performed by a University employee, the individual should be hired as a temporary employee.  
2. Once Human Resources has approved the Independent Contractor status, complete the Independent Contractor Agreement with the following information:  
• Independent contractor's (individual’s) name.  
• Brief description of the service to be performed.  
• Specific payment terms; such as, $50/hr, $100/day, $2,500 for project, or etc. If travel expenses are to be paid by the University, individual specifics; such as, airline ticket, hotel and/or etc. Vague terms such as "As invoiced" will not be accepted.  
• List instrumentation exceptions, if any.  
• Name of University contact(s).  
• Name of University person(s) to whom any notices should be sent.  
• Effective period covered by the agreement.  
3. Print out 2 copies of the agreement by clicking on the Generate Contract button and following the instructions for font size, etc.  
4. Forward both copies of the agreement to the independent contractor (individual) for signature and completion of the fields indicated on the last page.  
5. Receive both copies of the completed agreement back from the independent contractor.  
6. Attach both copies to a completed and signed Purchase Requisition form and forward to the Purchasing Department.  

NOTE: If the individual is a lecturer or performer, then a Guest Lecturer/Performer form  must also be included.  

Purchasing will:  

1. Verify Human Resources approval, which is required for all services, except for services performed by recognized establishments.  
2. Sign for the University.  
3. File one original agreement for future reference.  
4. Send one original agreement to the vendor with the purchase order.