Independent Contractor Agreements
VCU’s Independent Contractor Agreement Policy 
highlights the University’s policies and procedures concerning payments to persons not already in an employment relationship with Virginia Commonwealth University who perform contractual services that do not meet the definition of employee.
An Independent Contractor Agreement (ICA) is a contract between VCU and an individual. It is not an employment relationship with the University for payment for a specific service or product. A person is considered an independent contractor when the work is controlled only in regard to the results and not the means of achieving them. If the person meets the definition of an independent contractor, an ICA is the appropriate method of payment. Hourly rates are not included in ICAs; rather the total cost of the service is listed.
Typically, when an individual is an independent contractor, s/he bears the risk of profit or loss directly from his/her efforts, may hire assistants and may provide services to more than one unrelated customer (separate and distinct entities) at a time.
Faculty, classified and hourly employees cannot be considered independent contractors and may not be paid using an ICA. In most cases, they are performing additional duties as an employee and are either paid for hours worked in their current position or as an overload job.
The Independent Contractor Agreement (ICA) must be completed by the department in advance of the service and signed by both the person who is to provide the service and the department approver, as instructed on the form. The agreement must be submitted to Travel and Reimbursement Services with the purchase order number entered in the appropriate box.
Payments are subject to University policies concerning the procurement of individual, professional/nonprofessional and consulting services. Procurement Services is responsible for Internal Revenue Service reporting of independent contractor payments of $600 or more in a calendar year (IRS Form 1099-MISC). The department is responsible for providing the Social Security number and home address of the individual to be paid. The check will be made payable to the individual listed on the purchase order and sent to the recipient’s home address. The IRS Form 1099-MISC will also be mailed to the recipient’s home address.
If considering the use of an ICA, review the Independent Contractor Policy for the complete definition and guidelines, as well as the Employee versus Independent Contractor Guidelines to determine if the individual is considered an employee or independent contractor. All payments to independent contractors must be made via an Independent Contractor Agreement 
.