An employee is under the direction and control of the employer. The employer not only controls what is to be done, but the method by which it is to be done. The employer has the right to discharge or terminate an employee. There are three tests used to determine if an employee/employer relationship exists.
Characteristics include realization of profit or loss; working for more than one firm at a time; makes service available to the general public, has a significant investment in tools and materials; furnishes tools and materials for job.
An amount paid or allowed to, or for the benefit of, a student, whether an undergraduate or graduate, to aid such individual in pursuing his/her studies. Scholarships are awarded to WSU matriculating students based on need and/or merit (non-periodic payment). There is no expectation of prior, current or future service/effort. Scholarship amounts do not represent payment for teaching, research, or other services by the recipient required as a condition to receiving the qualified scholarship.
An amount paid or allowed to, or for the benefit of, an individual (WSU non-matriculating student) to aid him/her in the pursuit of study or research (periodic payment). There is no expectation of prior, current or future service/effort (non-wage). No services are required of the recipient of the fellowship. Example: non-student post doctoral research fellows. Fellowship payments to US Citizens and residents aliens are reportable on Form 1099.
Once you have determined the relationship between WSU and the payee, please continue to the next page, where you will be asked to identify the type of payment being made.
If you have decided that the payee is not an employee, determine if he/she is an independent contractor. Again, the payee must meet the following criteria:
(1) Does the payee have realization of profit and loss?
(2) May the payee work for more than one firm?
(3) Does the payee have significant investment in materials and furnish such to perform services?
(4) Are the services available to the public at large?
(5) The payee is not a current WSU employee
If you answered yes to the above, the payee is an independent contractor.
If you have determined that the payee is neither an employee or independent contractor, select the appropriate type of payment from the following:
If you are still unsure how the payee should be classified, please contact the Payroll Office at 335-9575 or firstname.lastname@example.org.