What must departments do prior to hiring (appointing) a contract employee?
Execute a Commonwealth Terms and Conditions contract form; Execute a Standard Contract form; Perform the SS-8 test “Determination of Employee Work Status for Purposes of Federal Employment Taxes and Income Withholding”; Hire the contract employee consistent with department’s standard hiring procedure; Complete a Form W-4; Retain all contract documents in hours for seven years after final payment. Refer to the Payroll Expenditure manual for more information. Vendors are determined to be independent contractors when the “SS8 test” is applied. They are paid via MMARS and receive a 1099 for tax reporting purposes. There will be no change for consultants paid as vendors.