How is the Independent Contractor Checklist used to determine worker classification?

Access the Independent Contractor Checklist (ICC) Form in 49er Mart if you need to complete the checklist.

The Tax Office analyzes the answers provided on the Independent Contractor Checklist (ICC) using the guidance provided by the IRS to determine whether the individual should be considered an independent contractor or an employee. Explanations for each question on the ICC are in the following table:

 

ICC Question/Field

Explanation
1

Does the contractor have a UNC Charlotte ID?
  • If the vendor has completed the supplier registration process and received a University ID, answer "Yes." If not, answer "No".
2

Is the contractor a person or a business?

  • If the vendor provides services through a business (e.g., has a storefront, advertises, etc.), select “Business.” If not, select “Person”.
3 Contractor’s First Name
  • Provide the individual’s first name.
    Note: No first name is required if they are being paid under the vendor’s business name.
4 Contractor’s Last Name/Business Name
  • Provide the individual's last name or business name.
5 Contractor’s Email
  • Provide the contractor’s email address.
6 Description of Services to be Provided
  • Provide a brief description of the services to be provided.
7 Is the individual receiving retirement benefits from the state of North Carolina? 
  • This question addresses the relationship of the parties test. 
  • An individual who has been employed with the University or State of North Carolina in the past would be more likely to be considered an employee.
  • If you answer “Yes” to this question, please make sure the service provider is aware of the state's retirement reemployment laws and have them complete an ESRR form.
  • For more information, please contact the North Carolina Department of the State Treasurer at www.myncretirement.com or (877) 627-3287. 
8 Is the individual on record as a current employee of the University or any other NC state agency?
  • This question addresses the relationship of the parties test.
  • The individual is more likely to be considered an employee if they are currently an employee of the University or any other state agency.
  • State employees are subject to dual employment rules per the NC State Personnel Manual. 
  • Under these rules, state employees are required to be paid as employees using a CP-30 form, Request for Additional Payment for Work Performed for Other State Agency.
9 Was the individual an employee of the University during the calendar year?
  • This question addresses the relationship of the parties test.
  • A continuing relationship between an individual and the University indicates an employer-employee relationship.
  • If the individual is a University or state employee, this situation strongly favors the employee classification. 
  • State employees are subject to dual employment rules per the NC State Personnel Manual.
  • Under these rules, state employees are required to be paid as employees using a CP-30 form.
10 Is it expected that the University will hire this individual as an employee following the termination of this work?
  • This question addresses the relationship of the parties test.
  • A continuing relationship between an individual and the University indicates an employer-employee relationship. 
  • If the University expects to hire the individual, this situation favors the employee classification.
11 Is this individual related or married to a UNC Charlotte employee?
  • This question addresses the potential for a conflict of interest. 
  • If a relationship is present, the Conflict of Interest Manager or Office of Legal Affairs will review the checklist.
  • If you answer "Yes," please provide the name(s) of the UNC Charlotte employee(s).
12 Does this individual have a business relationship with any UNC Charlotte employee?
  • This question addresses the potential for a conflict of interest. 
  • A conflict of interest may be present if a business relationship between the individual and a UNC Charlotte employee exists external to UNC Charlotte.
    • Example: The individual and the requester have co-founded a consulting business.
  • If a relationship is present, the Conflict of Interest Manager or Office of Legal Affairs will review the checklist.
  • If you answered "Yes," please provide the name(s) of the UNC Charlotte employee(s).
13 Is this individual a current UNC Charlotte student?
  • Refer to the How to Pay Students flowchart on the Financial Services website for additional information concerning how to pay students.
14 Does the University provide the individual with instructions on when, where, and how the work will be performed?
  • This question addresses the behavioral control test. 
  • If the University provides the individual with detailed instructions concerning how to provide the service, the employee classification is favored. 
  • This question focuses not necessarily on the final product but on how the work is performed. 
  • This question focuses not necessarily on the final product but on who controls how the work is performed.
15 Does the University provide training to the individual?
  • This question addresses the behavioral control test. 
  • Employees tend to receive training from their employer. 
  • Independent contractors tend to use their own methods and do not receive training from those who purchase their services.
16 Does the University require the individual to submit interim reports?
  • This question addresses the behavioral control test. 
  • If the individual is expected to provide progress reports, this indicates that the employer is controlling the method used for performing the work.
17 Does the University pay for the individual’s business and travel expenses?
  • This question addresses the financial control test. 
  • Employees tend to have their expenses paid by their employer, whereas, independent contractors tend to pay for expenses independently.
18 Does the individual have an investment in their own business?
  • This question addresses the financial control test. 
  • Individuals who have investments in their own businesses are more likely to be considered independent contractors.
19 Does the individual make their services available to other relevant markets?
  • This question addresses the financial control test.
  • Individuals who make their services available to other markets are more likely to be considered independent contractors.
20 Is the individual paid by the hour, week or month?
  • This question addresses the financial control test. 
  • Employees are usually paid wages at regular intervals, whereas independent contractors are usually paid a flat fee for their services.
21 Can the individual recognize a profit or loss from the services performed?
  • This question addresses the financial control test. 
  • Since an independent contractor is normally paid a flat fee and is responsible for expenses, this individual can normally recognize a profit or loss from the services provided.
22 Does the University have a written contract with the individual for the services being performed?
  • This question addresses the relationship of the parties test. 
  • Independent contractors usually receive a contract addressing expectations, compensation, and other terms of service. 
  • However, a contract alone does not necessarily indicate that the individual is an independent contractor.
23 Is the work being performed a key or integral part of the regular business of the University?
  • This question addresses the relationship of the parties test. 
  • Employee classification is more likely if the services performed are key or integral to the University's regular business.
24 Will the person be teaching, lecturing and/or providing instructional services associated with a for-credit class?
  • This question addresses the relationship of the parties test. 
  • Teaching, lecturing and/or instructional related activities related to for-credit classes are considered a key or integral aspect of the University and favor employee classification.
25 Will the work be provided on a recurring basis?
  • This question addresses the relationship of the parties test.
  • A recurring relationship between an individual and the University indicates an employer-employee relationship.
26 Is the individual providing similar services to other colleges and universities?
  • This question addresses the financial control test. 
  • Individuals who make their services available to other markets are more likely to be considered independent contractors.
27 Has the individual provided similar services as an employee of UNC Charlotte in the past?
  • This question addresses the relationship of the parties test. 
  • A recurring relationship between an individual and the University indicates an employer-employee relationship.
28 Does UNC Charlotte employ individuals who provide similar services?
  • If the nature of the services provided is substantially similar to those provided by UNC Charlotte employees, the individual will most likely be considered an employee.
  • The University should not pay individuals differently for the same services.
29 Can the University refuse payment to the individual for unsatisfactory work?
  • This question addresses the relationship of the parties test. 
  • If the University can refuse payment for unsatisfactory work, the individual is more likely to be classified as an independent contractor.
30 By checking the box and submitting this form, I certify that the information provided is complete and accurate to the best of my knowledge.
  • This box certifies that the information provided is accurate and complete to the best of your knowledge.

For information regarding the ICC Form, read this FAQ.

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