Use Attachments A, B and C to make worker status determinations. If there are no material differences in the factual circumstances that apply to a group of similarly situated workers, then one worker status determination for the group of workers as a whole can be used, rather than make an individual determination for each worker.
Develop internal procedures for making worker status determinations that are consistent with the regulations of the IRS and OSC policy.
Communicate IRS policy, OSC’s guidelines and your agency’s internal procedures for compliance to all business and administrative control units in your agency.
Follow the established procedures to make appropriate determinations and take necessary actions to stay in compliance with existing laws. A worker status determination must be undertaken in all cases where (i) your agency makes recurring payments to an individual for services rendered to the State, and (ii) the individual is not already being paid through the New York State Payroll System as an employee.
However, depending on the circumstances, it is possible that even a one-time payment may trigger the need for a worker status determination if your agency exercises the requisite degree of control over how the individual performs the services.
In addition, there may be infrequent occasions where a State employee performs services that are unrelated to the normal duties of his or her employment, and where a determination has been made under the guidelines contained in this Bulletin that the worker should be treated as an independent contractor with respect to those services. In the absence of another mechanism for making payment, payment for such services would be made on a New York State Voucher rather than through the Payroll System. Such cases would be exceptional, and would likely be subject to special scrutiny.
Document all worker status determinations. Your documentation must clearly support the determination you made to classify an individual as an employee or an independent contractor.
Maintain a completed copy of the documentation supporting your worker status determinations for a minimum of seven (7) years. This documentation must be available in the event of an OSC review and/or IRS audit.