Because independent contractors are not employees, they are not eligible for IPERS coverage. The guidelines below can help you consistently decide who is an employee and who is an independent contractor.
An individual IS an Independent Contractor when he or she...
- Has an established business that offers defined services.
- Offers services to multiple customers or clients.
- Was hired to work for you through a normal bid process.
- Has substantial control over how services are provided.
An individual IS NOT an Independent Contractor when he or she…
- Performs work only for you.
- Operates under a business name.
- Is subject to substantial control by your organization over how services are provided.
- Does not promote his/her services
- Is a teacher or superintendent.
- Is a city council member, city clerk, or other public official.
- Is performing an essential governmental function.
IPERS may review an employer’s decision to designate a worker as an employee or an independent contractor either during a compliance review or at the request of the worker or another person or group. In this situation, IPERS will ask you and the worker to complete a Worker Status Determination form and supply supporting documentation of the relationship. The Worker Status Determination form helps determine employment status for IPERS’ purposes only.
If you incorrectly covered or not covered individuals in the past, be sure to submit wage adjustments to correct the issue as soon as possible. You may submit wage adjustments online or on the Wage Reporting Adjustments form. Contact IPERS if you have questions.