SOW forms changing July 1
CU is revising the form it uses to hire independent contractors to ensure it follows a state law that penalizes employers for improperly classifying independent contractors.
Starting on July 1, when you provide an independent contractor with a Statement of Work form—which outlines a contractor’s services, compensation and method of getting paid—the form will include language about the Misclassification of Employees as Independent Contractors Act (MEICA). That law, first passed by the Colorado legislature in 2009, protects non-independent contractors from being misclassified, and thus, being ineligible for certain benefits. Employers who violate MEICA may receive fines, or may be prohibited from receiving state funds or future contracts.
The new SOW form also will require a more detailed description of each independent contractor's services and compensation.
Stay tuned for more details about the revised SOW and how to properly complete it. For more information about independent contractors, review the IRS’ definition of "independent contractor."