Worker Classification

Is your department considering the use of contract labor (an independent contractor)?  Should this individual be paid as an employee instead?

What difference does it make?

If a worker is classified as an employee:

· Georgetown University is responsible for the withholding and timely remittance of Federal, State income tax in addition to FICA taxes.

· Georgetown University is responsible for timely remittance of its share of FICA, unemployment insurance on employee wages.

· Georgetown University is responsible for reporting wages paid on Form W-2 (independent contractors receive Form 1099).

Whether a worker is an employee or an independent contractor hinges of the level of direction and control which the University has the right to exercise.  

All departments must forward independent contractor agreements and other employment contracts to the tax department for review and proper classification before entering into the agreement.