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When the
charter school begins to pay people, the Board, as an employer, must determine
the correct classification for each person paid. The IRS is fairly specific
about definitions of "employee" and "independent contractor" (consultant). A
school's insurance provider has guidelines about insurance and worker status as
well. Lastly, the charter school law has guidelines about contracting
consultants (independent Contractor). So check it out.
Q1: Staff: When do we consider someone we are paying an "employee" and when a
"consultant" or independent contractor?
A1: See
this
IRS Definition. Your consultants (independent contractors) should have their own
insurance. An experienced Human Resource administrator can provide your board
or your designated start-up administrator with guidance as to the best way to
clarify this and initiate the employer-employee or employer-consultant
relationship.
Q2: Does "employee" vs. "independent contractor" have anything to do with
Workers' Compensation?
A2. Yes. Click Here.
Q3: Does the "employer" or "independent contractor" status have anything to do
with the charter school's liability insurance?
A3: This depends on your insurance policy. Your charter school may plan using
several people helping with small pieces of the curriculum or program. Perhaps
it is not possible for each person, for a small amount of work, to obtain
independent insurance. Most consultants should carry his/her own insurance. The
charter school should make sure that imposing insurance requirements & costs is
reasonable and talk to the insurance carrier about options.
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