As a rule, the Institute prefers to hire regular* employees rather than contractors to fill its staffing needs. In most instances, people hired by the Institute are considered to be employees, as defined by the IRS for tax reporting purposes (please see the Classification of Temporary Workers policy for more information). However, under certain circumstances it may be necessary to hire temporary personnel on a contract basis for a specified period of time to complete a particular project. Such contract workers, whose terms of employment must undergo an IRS classification analysis, are not employees of the Institute. They are paid for the time they work, as specified by their contract, but are not entitled to other benefits of employment.

It is essential that workers be properly classified as either employees or contractors, and that the classification be substantiated by documentation. The federal Internal Revenue Code, as well as other federal and state laws, governs the designation of a worker as an employee or a contractor. If an employee is misclassified as a contractor, the Institute may be subjected to significant tax penalties and other liabilities. Please see the Classification of Temporary Workers policy for more information.

Each classification must be determined prior to the time when the individual begins work. This determination will be made in consultation with the Comptroller's Office and/or the Human Resources Office. Contractors must enter into independent contractor agreements with the Institute prior to performing any services.

Individuals receiving payments such as honorariums, prizes, awards, and postdoctoral fellowship stipends do not need to undergo the IRS classification analysis. Processing of these types of payments are governed by the Comptroller's Office.

All requests for temporary help should be reviewed in advance by Human Resources or the Comptroller's Office, according to Institute guidelines. All contractors engaged by the Institute are subject to the same background verifications as regular, active employees of the Institute. Contractors, unlike employees, are paid through the Accounts Payable office after the contracted work is completed or approved, according to their specific agreement. Payments to legal aliens are processed according to federal law.

Supervisors who have questions or need guidance about this process should contact the Comptroller's Office or the Manager of Human Resources.

*Regular employees are defined as those in established positions of the Institute with no time limit placed on the term of their employment and who are eligible for benefits based on their full-time (35 to 40 hours per week) or part-time (25 to 34 hours per week) schedule.