Independent Contractors (ICON's)

Independent Contractors (ICON's)

An Independent Contractor is someone who is in business for themselves. Canada Customs and Revenue Agency presumes that all individuals who provide a service are employees unless there is evidence to support classification of the individual as an independent contractor. Therefore, if the University engages an individual as an independent contractor, it must be able to support this position.  Determining independent contractor status is driven by facts and circumstances. The facts and circumstances that make one individual an independent contractor may differ from those that make another individual an independent contractor. In broad terms the two areas to consider are:

1. The relationship between the person providing the service and the person using it; and
2. The relationship between the service provided and the University’s business.

Contractor status will only be allowed if compelling evidence is provided to support the classification of an individual providing a service as an independent contractor. An Independent Contractor Form (ICON form) has been developed to help in the determination process. As a general rule, employees may not be treated as independent contractors when providing services to the University, even if the services are outside of the normal duties of their position. Separate employment contracts should be established in these circumstances.

How to Hire an Independent Contractor

The following steps should be followed when a department wishes to engage in the services of an independent contractor:

1. Review the Contractor Status Policy
2. Using Chart A in the policy, identify whether an employee/employer relationship clearly exists. If the circumstances of a specific situation are not covered in the chart, contact Human Resources.
3. After determining the employee/employer relationship, use Chart B in the policy to determine the method of payment.
4. Unincorporated businesses providing a service to the University must submit an ICON Form prior to engaging in the service.
5. Once Human Resources confirms eligibility of Independent Contractor status, the department/account holder and purchasing will be notified.
6. The department/account holder must submit a purchase requisition to Purchasing to obtain a Purchase Order #.  After the service is complete, payment to the independent contractor will be made by finance upon submission of an invoice that includes the Purchase Order #. 
7. Note: an independent contractor operating under their own name without a BIN number or HST number will be issued a T4A at the end of the year by Payroll.

If you have any questions about Independent Contractors at Trent University, please contact humanresources@trentu.ca. 

Independent Contractors with questions regarding the processing of your payment, including how to receive payment via EFT, should contact Accounts Payable at accountspayable@trentu.ca.