ADMINISTRATIVE PROCEDURES MANUAL

STATEMENT 4, CONTRACTUAL & CONSULTANT SERVICES

NORTH CAROLINA STATE UNIVERSITY

"CHECKLIST FOR DETERMINATION OF INDEPENDENT CONTRACTOR STATUS"

To ensure that agreements or contacts with individuals are properly
classified for employment status according to Internal Revenue
Service guidelines, this checklist MUST be completed for all
personal service contracts and forwarded to the Purchasing
Department with the contract or agreement for review.

For the individual to be categorized as an independent contractor
and not an employee, the answers to the majority of the following
questions should be YES.  If you have any questions or need
assistance in completing the checklist, please call the University
Controller at 5-3824.  If the contract does not address the stated
issue, please indicate "not stated."

                                                  YES       NO

1.   Does the contract state that the
     University has no right to control how
     the work is performed?  (Note:  Control
     level is only on an end product or result.)  _____     _____

2.   Does the contract state how the
     independent contractual obligations are
     met?                                         _____     _____

3.   Does the contract state that the 
     independent contractor has a right to hire
     and fire assistants?                         _____     _____

4.   Does the contract state that the independent
     contractor will treat controlled assistant 
     as employees of the contractor and 
     comply with all tax requirements?            _____     _____

5.   Is the independent contractor paid by the 
     job, rather than by the hour?                _____     _____

6.   Is the independent contractor viewed as a
     skilled worker?                              _____     _____

7.   Is the independent contractor hired for a 
     specified time period?                       _____     _____

8.   Are the hours of work set by the   
     independent contractor?                      _____     _____
   
9.   Does the independent contractor advertise 
     and project an image to the public as an 
     individual in private business?  For 
     example, does the independent contractor 
     utilize business cards, advertise in the 
     yellow pages or advertise on the side of a 
     truck or van?                                _____     _____

10.  Does the University consistently refer to 
     the worker as an independent contractor 
     in letters, memoranda, invoices, check 
     stubs, and other correspondence between 
     the parties?                                 _____     _____

11.  Does the independent contractor furnish
     the tools used?                              _____     _____

12.  Is the independent contractor engaged by 
     the University to do something that is 
     not part of the day-to-day operations of 
     the University?                              _____     _____


ADDITIONAL COMMENTS:





               ______________________________________________
               Contractor Name

               ______________________________________________
               Contractor FID/SSN Identification

               ______________________________________________
               Date of Contract


Prepared by:   ______________________________________________
               Name

               ______________________________________________
               Title

               ______________________________________________
               Phone No.

Rev. (07/2000)            

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