Guide to Hiring a Contractor
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1 KIPP Houston Guide to Hiring a Contractor A Guide for KIPP School Leaders and Managers Human Resources 5/10/2011
2 Independent Contractor vs. Employee The role of Independent Contractor is defined by the IRS, based on a series of tests applied to the relationship between KIPP and the contracted individual or company. If a worker does not meet the IRS definition of an Independent Contractor, they must either be an employee of KIPP or a volunteer. To assure that the definition of Independent Contractor is being met, please complete the attached questionnaire. Those who do not meet the test conditions must be hired as KIPP employees prior to work commencing. KIPP Employees have certain perks and protections afforded to them by the KIPP policy and by law. These include Workers Compensation Insurance, medical benefits (for those who qualify), posted payday schedules and payroll deduction of mandated deductions like federal income tax withholding, Medicare, state unemployment insurance, and the like. Independent Contractors are not provided these perks and bear the burden of maintaining tax liabilities, insurance requirements, and any other requirements as mandated by law. Fingerprinting All Independent Contractors both individuals and those working with a contracted corporation who have the potential to come into contact with KIPP students must be fingerprinted; in other words, any place where children are on property. The following steps must be followed by the Independent Contractor Corporation prior to work commencing at KIPP: 1. Set up an account with the Texas Department of Public Safety: Contact the Criminal History Inquiry Unit of the Texas Department of Public Safety (DPS) at (Option 2) to set up an account as a new "CONTRACTOR". The DPS will require a copy of the signed contract between KIPP Houston and the contractor (usually the first and last page will suffice, showing dates and signatures). A letter from KIPP Houston may also suffice. (Sample letter included in packet). 2. Have fingerprints taken: The DPS will provide instructions on how and where to have the prints taken. There will be a fee of $50.20 per person. Unless specifically negotiated in the KIPP Houston contract, the contractor (or the employees of the contractor) will pay the fees. 3. Provide KIPP documentation: Proof that the fingerprints were taken for each individual or contracted employee must be provided to KIPP Houston. Each Contractor must also provide KIPP Houston a list of working contractors or sub-contractors who have been fingerprinted so that KIPP can subscribe to their fingerprints. If the contractor has employees that begin or end employment after the initial list is submitted, updated information must be provided to KIPP Houston. (See Contractor Rosters included in this packet) 4. Provide HR with information when an employee of the Contractor is no longer working for KIPP so that we can unsubscribe to contractors. The following steps must be followed by the Independent Contractor Individual prior to work commencing at KIPP: 1. Contact the Texas Department of Public Safety: Contact the Criminal History Inquiry Unit of the Texas Department of Public Safety (DPS) at (Option 2) to obtain a FASTPass. The contractor should identify themselves as an "Individual CONTRACTOR". The DPS may require a copy of the signed contract between KIPP Houston and the contractor (usually the first and last page will suffice, showing dates and signatures). A letter from KIPP Houston may also suffice. (Sample letter included in packet).
3 2. Have fingerprints taken: The DPS will provide instructions on how and where to have the prints taken. There will be a fee of $ Unless specifically negotiated in the KIPP Houston contract, the contractor (or the employees of the contractor) will pay the fees. 3. Provide KIPP documentation: Proof that the fingerprints were taken must be provided to KIPP Houston. 4. Provide HR with information when the individual is no longer working for KIPP so that we can unsubscribe to their records. Substitutes Substitute teachers are the only contractors that are exempt from the processes above. The Contractor Corporation should work with the HR Generalist, Amy Dale, to obtain FASTPasses for their substitute teachers. KIPP Employees KIPP employees may not also act as Independent Contractors. Proof of Insurance All Independent Contractors may be asked to provide proof of insurance, including General Liability naming KIPP, Inc. as the additionally insured, and Worker s Compensation. For questions regarding amounts, please contact the Chief Operations Officer.
4 Request for Contractor Date: Person making request: School/Dept: Individual or Corporation? Contact information ( address & phone) for Contractor Brief Description of the job contracted for: Anticipated start date: Anticipated end date: I have completed and attached the following documentation: Employee vs. Independent Contractor Checklist Copy of signed contract or contractor engagement letter Proof of completed fingerprints Completed roster Proof of Insurance Completed W-9 Completed Background Check Form Completed documentation packet should be submitted to HR TWO WEEKS PRIOR to contractor beginning services.
5 Does This Individual Qualify as an Independent Contractor? Employee vs. Independent Contractor Checklist (To be completed by the KIPP Houston employee executing the contract) Please check the appropriate box under each category that best describes the predominant characteristics of the worker. Instruction and Training Employees are required to comply with instructions as to when, where, and how work is performed, and their training is provided either by formal program or work supervision. ICs are free to perform work according to their own professional standards, use their own methods, and receive no training from purchasers of their services. Payment Terms Employees are paid by the hour, week, or month on a regular, indefinite, and continuous basis. Employees business expenses are paid. Fringe benefits are usually provided. ICs are often paid by the engagement with a fee calculated without regard to time spent. ICs are not paid for excess time to perform the task nor given paid vacation or sick leave. ICs pay their own expenses. Engagement Terms Employer has the right to discharge an employee; control is exercised with threat of dismissal. Employees have the right to quit without incurring liability. ICs complete the agreed task without regard to the time it takes and may suffer damages if work is not performed as contracted. Relation to Entity Employees services are an integral part of the ongoing success and continuation of the organization. Services are rendered personally by employees, who work only for, have loyalty to, and do not compete with the employer. Employees are bonded and provided workers compensation. ICs consult on a, per job, limited term, or special project basis. ICs can hire and pay assistants to perform the work. ICs services are available to the others on a regular basis. Some ICs work under a company name. Work Place and Hours Employees work on business premises or are physically directed and supervised by employer. Hours of work are established by employer. ICs often work at their own places of business, and usually set their own time for performing work. Investment Employees are dependent upon employer for tools and facilities, and usually make no investment in the job. Employees bear no risk of loss for financial costs of employer. ICs buy their own tools, hire workers, pay licensing fees, and are responsible for costs of engagement. ICs bear financial risk of losing money. Duration of job: Contractor Name: Completed by: Signature:
6 Sample Contractor Engagement Letter (Written Contract is best, but this letter will suffice) In consideration of payment by KIPP, Inc. Fixed fee or Hourly rate Reimbursable expenses: Invoices for services will be issued monthly, along with receipts and other documentation for reimbursable expenses listed above. For consideration, we (I) agree to perform the following services: We (I) agree to perform the specified services in good order in a timely fashion. We(I) are independent contractors, not an employee or agent of KIPP, Inc., and are responsible for all federal and state payroll taxes and insurance in connection with this engagement. This agreement may be terminated by either party at any time after payment for any unpaid charges for services rendered up to termination. In acknowledgement of our understandings, we have both signed below. By: (printed name) (signature) (date) (name of organization) (printed name) (signature) (date) KIPP, Inc.
7 Sample Letter to provide DPS in lieu of written contract Texas Department of Public Safety Crime Records Services Access and Dissemination Bureau Post Office Box 4143 Austin, Texas Date: Dear Sir or Madam: This letter confirms that (KIPP Inc Charter/KIPP Southeast Charter) has entered into a contract or agreement with Mongoose Karate (Contractor) to provide services to the district. Contractor may have covered employees for whom Contractor is required to obtain state and national criminal history record information, under Texas Education Code chapter 22, subchapter C. If there are any questions or you need further information from the District, please contact the undersigned. Sincerely,
8 Add to Contractor Roster (License/ID Information required for verifying fingerprint records) Company Name: Date: Last Name, First Name (as indicated on picture ID) Driver s License / State TCN# or SID# ID Number
9 Delete from Contractor Roster (License/ID Information required for verifying fingerprint records) Company Name: Date: Last Name, First Name (as indicated on picture ID) Driver s License / State TCN# or SID# ID Number
10 School Requesting: Contractor: Access to Police Records Contractor Revised Texas Education Code authorizes KIPP Houston to obtain criminal history information on a person expressing an interest in volunteering for KIPP Houston. Failure to respond truthfully may prohibit you from working for KIPP. Name: Last First Middle Maiden Have you been known by any other names? If so, please list: Address: Driver s License #: State: Gender: Race: Date of Birth: Social Security Number: 1. Have you ever been convicted of a crime, other than a traffic ticket or parking violation, or have you ever received deferred adjudication for a crime? Yes No Warning: You must answer Yes even if you have completed the deferred adjudication and have been advised or do not feel that the crime is or should be reflected on your record. 2. If Yes, state the crime or crimes, location of the court where you were convicted, date of conviction, and current disposition or status, including length of probation, parole, fine, or time served. Crime(s): Court(s): Date(s): Disposition(s): My signature below indicates my intention to work as a contractor for KIPP Houston. I authorize KIPP Houston to obtain, use, and evaluate my criminal history to allow me to work for KIPP Houston as outlined in Texas Education Code Signature: Date:
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