An Employee is an individual who performs a service for the university/agency and is working under the direction and control of the university/agency or its employees. Direction and control can be implied to exist when the employer has the right to control both the results as well as the means and methods of the worker. (IRS Treasury Regulation 31.3121(d)-1(c)).
An Independent Contractor is an individual engaged by the university/agency to perform a specific function or task and who is free to perform this function or task completely at the individual's own discretion with regard to means and methods. No taxes are required to be withheld or paid on compensation disbursed. (IRS Treasury Regulation 31.3401(c)-1(b)). The existence of an agreement or contract helps support the independent contractor position. This document should be fairly specific in what is to be provided and amount or lack of control the university/agency has over the individual.
To determine if an individual is an employee or independent contractor, complete the Worker Classification Questionnaire and submit to tax@tamu.edu.