Purpose
The purpose of this policy is to establish guidelines for engaging consultants and independent contractors at Rhode Island School of Design (“RISD”). This policy ensures compliance with Internal Revenue Service (“IRS”) regulations, clarifies the distinction between employees and non-employees, and outlines the approval and payment processes for contracted services to avoid misclassification risks, ensure proper documentation, and maintain fiscal responsibility.
Scope
This policy applies to all RISD faculty, staff, and departments.
Definitions
- Consultant: an individual or entity providing services for advice and counsel. Consulting does not include the performance of services other than advice and counsel, such as sales, brokerage services, or other economically similar services.
- Independent Contractor: a self-employed individual in an independent trade, business, or profession who offers their services to the public. An independent contractor, as a matter of economic reality, is not economically dependent on an employer for work and is in business for themselves. An independent contractor has the freedom of control over their work, including the methods and means by which the work is completed. RISD may only direct the result of the work.
- Employee: an individual who, as a matter of economic reality, is economically dependent on the employer. An employee works for an employer, where the employer has the right to control the manner and means by which the work is performed.
- Statement of Work ("SOW"): a formal document outlining the work requirements, such as scope, deliverables, timeline, and compensation for contracted services.
- 1099-NEC: an IRS tax information form for payers to report nonemployee compensation to recipients. It shows the amount of income, federal and state tax withholding, and account number of the recipient.
- Contract: a legally binding agreement between two or more parties that outlines specific obligations, rights, terms, and conditions related to academic, administrative, or operational activities.
Policy
RISD engages consultants and independent contractors to provide specialized services that are temporary, non-recurring, or outside the scope of regular college operations. All engagements must align with RISD’s mission and comply with federal and state tax laws, including IRS guidelines that distinguish between employees and independent contractors. All independent contractors are required to comply with applicable RISD policies and federal, state, and local law.
Engagement Approval
Departments may reference the flowchart located in the appendix of this policy to complete an initial review of a proposed independent contractor or consultant. This flowchart illustrates the general review and approval process outlined in this policy, but the process may vary depending on the contract's complexity and the nature of services being provided. For more information on the review and approval process for contracts, thoroughly review RISD’s Procurement Policy under Related Policies.
All consultant or independent contractor engagements must be pre-approved by the Dean or Department Head, or Office Head, and initiated with Procurement Services by submitting a Contract Request via RISD’s Contract Management Software to include a thorough SOW or Description of Services. Specifically, all consultants must be approved by the Senior Vice President of Finance and Administration prior to commencing work or executing a contract.
Distinguishing Employees from Independent Contractors
- RISD adheres to IRS guidelines to determine worker classification. Misclassification may result in RISD incurring penalties.
- Procurement Services will have the sole authority to approve an individual as an independent contractor.
Required Documentation
- Independent contractors must register through RISD’s official supplier portal. This includes the supplier's W-9 Form and payment information. Independent contractors must complete their supplier profile before payment can be made.
- Proof of Insurance: For high-risk services (e.g., construction, events), independent contractors, the Office of Risk Management will be consulted to determine the required insurance.
Prohibited Engagements
RISD prohibits the engagement of consultants or independent contractors for services that fall within any of the following categories:
- Services That RISD Employees Should Perform, including:
- Core to RISD Operations: Tasks that are integral to the daily functioning of a department (e.g., routine administrative support, recurring clerical work, or roles typically filled by staff or faculty).
- Ongoing or Permanent in Nature: Work that implies an employer-employee relationship (e.g., a contractor performing the same duties as a full-time employee for an extended period).
- Supervised by RISD: Services where RISD controls the how, when, and where of the work (e.g., requiring the contractor to follow a set schedule or use RISD-provided tools/equipment in a manner consistent with an employee).
Examples of Prohibited Services:
- Hiring an independent contractor to manage an office’s day-to-day administrative tasks (e.g., answering phones, scheduling meetings).
- Using an independent contractor to teach a regularly scheduled course without a proper adjunct faculty appointment.
- Engaging an independent contractor for long-term IT support that mirrors an internal staff role.
- Personal Services Unrelated to RISD Business, including but not limited to services that:
- Benefit Individuals Rather than RISD: Work performed for the personal gain of an employee, student, or affiliate (e.g., home repairs, private tutoring, or non-RISD event planning).
- Lack a Clear Business Purpose: Services that do not advance RISD’s mission, academic goals, or operational needs.
Exceptions
Exceptions require written approval from the Senior Vice President of Finance and Administration.
Procedures
Visit Procurement’s Independent Contractor Process website for step-by-step instructions on the submittal, review, approval, and payment procedures.
Policy Sanctions
RISD reserves the right to review alleged violations of this policy in conjunction with other appropriate offices and under other applicable College policies, procedures, and collective bargaining agreements, including but not limited to those listed under Related Policies. Failure to comply with this policy and other Related Policies is subject to disciplinary action and sanctions per applicable disciplinary procedures.
Related policies
Revision history
This policy was created on: 6/9/2026
This policy was last reviewed/modified on: 6/9/2026
Next scheduled review: 6/9/2028
Responsibilities
Issuing Office
Procurement Services Office
Responsible Officer
Senior Vice President, Finance and Administration
Individuals/offices required for review and changes
Director, Procurement Services
Controller