[ASA-Official] Message from SAO about Procedural Changes in Paying Independent Contractors

[D.W. Rowlands]

Dear Student Leaders,

Under the directives of the State of Massachusetts, MIT has made an
adjustment to the process by which it pays individuals who serve as
“Instructors” to student organizations.  Previously, these individuals
have been paid as “independent contractors” via a W-9 tax form.  The
State of Massachusetts has deemed these individuals must be paid as
“employees”, through a W-4 tax form.  Outlined below is a summary of
the new process, who this affects, and support resources available.


What is the New Process?


     The agreement between the student organization and the individual
is an employer/employee relationship.  This means that a contract is
not required.  Instead, please use the “employment agreement” template
found on the SAO website,
(http://studentlife.mit.edu/sao/finance/forms).  Please include a
description of duties, hours and dates, and pay per month.  These
individuals will be paid on the last work day of every month.

     The individual will be responsible for making arrangements with
DSL Administration’s human resources personnel to submit employment
paperwork.  The documents which the individual will need to submit, in
person, are the I-9 Immigration Form and the W-4 Tax Form.  Both are
available on the SAO website.  Please have the individual contact
Alicja Estabrooks (estabroa at MIT.EDU), in DSL Administration, to make
arrangements.

     The Treasurer (or other financial signatory) will also submit a
copy of the employment agreement to Colin Codner (cmcodner at mit.edu) in
the Student Activities Office.

     **Important:  If the HR forms and the Employment Agreement are
not submitted by the 15th of a given month, the individual will not be
paid until the end of the following month.


Who Does This Affect?


     This new procedure will affect all individuals who are deemed to
provide “instruction”.  This includes, but is not limited to, coaches,
teachers, directors, etc.  It does not matter the frequency or
duration of the assignment, only purpose.  For example, an individual
hired for one week to teach a course must be paid through this payroll
system the same as the coach hired for the entire semester.

     This procedure specifically does NOT include “performers”,
specifically, musicians, performing artists, etc.   It also does not
include companies which are hired to provide “instructional services”.
 Also, it is important to point out that in the event an MIT student
is to be paid, the student must always be paid through the existing
MIT payroll system process for students.

     **Important:  As an incorrect designation may result in
significant delays, please, ask first if there are any questions about
whether this will affect a particular individual.


What Support Resources are Available?


     The SAO website (http://studentlife.mit.edu/sao/finance) has
forms and other information available which will assist students in
this process.  Furthermore, please contact Colin Codner
(cmcodner at mit.edu) with any specific questions.

     We appreciate your assistance as we work together to accommodate
the new process and strive to minimize any disruption to your
programs.


Thank you,

Colin Codner
Assistant Director of Student Activities & Finance
cmcodner at mit.edu
617-253-0194

In collaboration with:  UA FinBoard, Graduate Students Council,
Association of Student Activities, & Club Sports Council