Purchasing Policy - Independent Contractors
The IRS requires that the hiring of INDIVIDUALS (or a business owned by an individual that is not a partnership or corporation) be done only after a determination has been made as to whether the person should be hired as an employee or an Independent Contractor according to IRS definitions. At the University of Maine, the Department of Human Resources makes this determination on a case by case basis.
If it is determined that the individual should be hired as an Independent Contractor, the service will be treated like any other purchase. In addition, a Personal Services Contract must be signed by the individual and the University Purchasing Department as described in APL VII-H.