The University department or unit using the services of the independent contractor (non-Bradley employee) must complete the Determination of Independent Contractor Status document before the independent contractor provides any services to the University. Form 1 of Determination of Independent Contractor Status document should be completed by the appropriate University personnel and approved by the University department or unit head. The responses to the questions contained on Form 1 should affirm the independent contractor status. The independent contractor is then responsible for completing Form 2 of the Determination of Independent Contractor Status document and providing the university with the requested information and certification. A current Determination of Independent Contractor Status document must be on file with Accounts Payable, Controller's Office, before any payment is made to an independent contractor.
Bradley University will issue a form 1099 MISC (subject to IRS regulations) to independent contractors for amounts paid to them by the University. The amounts paid to the independent contractor may represent consulting fees, travel and lodging fees, or miscellaneous expenses incurred by the independent contractor. The entire amount of the agreed upon compensation and related travel expenses will be reported on the independent contractor's Form 1099 MISC unless the recipient specifically requests that the travel expense be reported separately and provide the appropriate original itemized receipts. In that instance, the expense will not be added to the 1099. However, if there are only copies and no specific request was made, then AP must include all payments on the 1099. The IRS requires these documents to ensure that individuals that are reimbursed for expenses also do not include them as a business deduction for their tax returns. The independent contractor should be responsible for paying all expenses related to the performance of their service.