Consulting 20 Rule Test

Securing and Paying for Consultant and Independent Contractor Services

Section I

20 Rule Test

Re: Employee/Employer Relationship

See Following Article for Explanation of Guideline

Test #	The Individual	Employer/ Employee Status	Consultant Ind. Cont. Status
1	Must comply with the employing department's instruction about work	Yes	No
2	Receives training from or at the direction of the University	Yes	No
3	Provides services that are integrated into the University's business	Yes	No
4	Renders services personally; cannot sub-contract the work	Yes	No
5	Permitted to hire, supervise, and compensate assistants for the University	Yes	No
6	Has a continuing working relationship with the University	Yes	No
7	Must following set hours of work	Yes	No
8	Works full time for the University	Yes	No
9	Reports regularly to the University employing department	Yes	No
10	Department directs the sequence in which work is performed	Yes	No
11	Oral or written reports regularly submitted	Yes	No
12	Paid on a regular basis (i.e. bi-weekly, monthly)	Yes	No
13	Paid for business expenses	Yes	No
14	Uses University tools and materials	Yes	No
15	Lack a major investment in facilities used to perform services	Yes	No
16	Can make a profit or suffer a loss from their services	No	Yes
17	Work for more than one employer	No	Yes
18	Offers services to the public	No	Yes
19	Can be "fired"	Yes	No
20	May quit work at any time and not incur liability	Yes	No

* Source: Internal Revenue Ruling 87-41.

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