Updated Andrew Clone of Independent Contractor Checklist

FINA 2.40 - Appendix A
Independent Contractor Classification Questionnaire
Purpose/Requirement: Before a department engages an individual to perform services, this checklist must be completed and retained to help ensure proper worker classification and payment processing. This checklist incorporates the criteria outlined in Policy FINA 2.40 - Independent Contractors, which derives from Internal Revenue Service (IRS) regulations. Refer to Procedure FINA 2.40 for information regarding limited exceptions to this requirement.

Please note, this review is not limited to individuals contracting in their own personal capacity. It also applies to services performed through a single-member LLC, sole proprietorship, or other similar business entity that is owned, controlled, or operated by the individual performing the services.

Service Provider Information
Instructions: Provide information about the individual or entity performing the services, including a brief description of the services and the anticipated service period.
Service Provider Name
First and Last Name or Company Name
Description of Services to be Provided
Service Start Date

MonthDayYear
2 digit month, 2 digit day, 4 digit year
Service End Date

MonthDayYear
2 digit month, 2 digit day, 4 digit year

Section 1 – High-Risk Employee Indicators
Instructions: We recommend reviewing Policy and Procedure FINA 2.40 in full before starting. Select Yes or No for each question using the drop-down list. The questionnaire evaluates relevant worker-classification factors and provides a decision point. No single factor determines worker classification - a totality-of-circumstances approach must be utilized to consider all factors holisitically. Completion of the questionnaire will result in one of the following decision points for the department: (1) Indication of Employee; (2) Indication of Independent Contractor; or (3) Controller's Office Review Required.
Is the individual currently employed by USC?
Are the services substantially the same as the individual’s normal duties as an employee and associated with USC’s primary purpose and normal course of business?
Was the individual employed by USC within the past 12 months?
Are the services substantially the same as the individual’s prior duties as an employee and associated with USC’s primary purpose and normal course of business?
Will the individual become a USC employee immediately following this engagement?
Are the services substantially the same as the individual’s planned duties as an employee and associated with USC’s primary purpose and normal course of business?
Is the individual a USC retiree?
Are the services substantially the same as the individual’s prior duties as an employee and associated with USC’s primary purpose and normal course of business?
Are the services related to the teaching or instruction of a USC course?
Is the course being offered for academic credit?
Is the individual currently teaching other courses for academic credit at USC (either within your department or elsewhere at USC)?

Section 2 – Core Classification Factors
INVESTMENT:
Will USC provide most of the facilities, equipment, or supplies needed to perform the services?
Employee Score
Independent Contractor Score
ECONOMIC DEPENDENCE:
Does the individual routinely provide similar services to clients other than USC?
Employee Score
Independent Contractor Score
NATURE/DEGREE OF CONTROL:
Will USC have the right to direct and control how the services are performed?
Employee Score
Independent Contractor Score
Does the individual have the autonomy to determine whether others can be hired to assist with the work performed?
Employee Score
Independent Contractor Score
Will USC establish work schedules, require attendance at specific times, or provide ongoing supervision?
Employee Score
Independent Contractor Score
Will the individual be paid on an hourly, weekly, or recurring basis rather than a flat fee for a specific period?
Employee Score
Independent Contractor Score
Will the individual be responsible for covering any applicable business expenses without reimbursement from USC?
Employee Score
Independent Contractor Score
PERMANENCE:
Are the services tied to a specific project or defined end date rather than continuous in nature?
Employee Score
Independent Contractor Score
SKILL/INITIATIVE:
Will USC provide training on how to perform the work rather than relying on the individual’s specialized skills and experience?
Employee Score
Independent Contractor Score
PROFIT/LOSS OPPORTUNITY:
Does the individual rely on USC to set the pricing and compensation for the arrangement?
Employee Score
Independent Contractor Score
INTEGRAL:
Are the services a regular and central part of USC's ongoing operations rather than a specialized function, service or product?
Employee Score
Independent Contractor Score
SCORING and DECISION OUTCOME:
Employee Score Calc
Independent Contractor Score Calc
Employee
Independent Contractor
Controller's Office Review
Decision Outcome

Section 3 – Decision Point
Employee Relationship
The facts and circumstances support treatment as an Employee relationship.

Please contact your department’s Human Resources manager or the Division of Human Resources for assistance. Refer to the following policies as applicable:
- ACAF 1.00 - Recruitment and Appointment of Tenured, Tenure-Track and Professional-Track Faculty
- ACAF 1.01 - Recruitment and Appointment of Academic Administrators
- HR 1.24 - Recruitment and Appointment of Classified, Unclassified, Research Grant, Time Limited Employees
- HR 1.25 - Appointment for Non-US Citizens
- HR 1.86 - Student Employment Policy
Independent Contractor Treatment
The facts and circumstances support Independent Contractor treatment.

Maintain supporting documentation and follow applicable procurement and payment procedures. See Other Considerations below and refer to the following policies as applicable:
- FINA 2.12 - Accounts Payable
- FINA 2.14 - Acquisition and Payment of Goods and Services
- FINA 7.10 - Tax Management
- BUSA 7.00 - Purchasing
Other Considerations for Independent Contractors

Contracts - A written agreement is strongly recommended for all independent contractor engagements and should clearly describe the services to be performed. Refer to Policy BTRU 1.04 - Authority to Sign Contracts and the associated Contract Approval Request Form to ensure all required reviews and approvals are obtained.

Procurement - If the aggregate cost of the services exceeds $10,000, contact the Purchasing Department to ensure the services are procured in accordance with applicable competitive solicitation requirements and that a Purchase Order is established. Refer to Policy BUSA 7.00 for additional information.
Controller's Office Review Required
Further review required. A member of our team will contact you within three business days to request additional information to assist in making a determination.

Section 4 – Certification and Acknowledgement
I certify that I have firsthand knowledge of the proposed service relationship and that the responses provided in this questionnaire are complete and accurate to the best of my knowledge. I understand that this questionnaire is intended to document the University's good-faith analysis of worker classification and that final classification is based on the totality of the circumstances, not on any single factor or questionnaire response.

I have reviewed the above responses and acknowledge that should the IRS disagree with the classification, the University may hold the department responsible for any additional compensation, taxes, interest, or penalties assessed by regulatory bodies. I acknowledge this checklist should be retained by my unit/department to support the respective classification analysis.

I also certify and acknowledge that by entering my first and last name below, I am providing an electronic signature that is the legal equivalent of my handwritten signature.
Name

First NameLast Name
Date

MonthDayYear
2 digit month, 2 digit day, 4 digit year
Email
Title
USC Department Number
Six-Digit Numerical Value
Should be Empty:

FINA 2.40 - Appendix A

Independent Contractor Classification Questionnaire

Service Provider Information

Section 1 – High-Risk Employee Indicators

Section 2 – Core Classification Factors

INVESTMENT:

ECONOMIC DEPENDENCE:

NATURE/DEGREE OF CONTROL:

PERMANENCE:

SKILL/INITIATIVE:

PROFIT/LOSS OPPORTUNITY:

INTEGRAL:

SCORING and DECISION OUTCOME:

Section 3 – Decision Point

Employee Relationship

Independent Contractor Treatment

Controller's Office Review Required

Section 4 – Certification and Acknowledgement