12 Miss. Code. R. 9-7.1
Pursuant to Mississippi Code Annotated § 27-104-7, PPRB has authority to develop and promulgate rules and regulations governing solicitation and selection of contract workers, as defined in Mississippi Code Annotated § 25-9-120.
A contract worker is a worker under contract with an Agency who meets the requirements for an employee under the Internal Revenue Service ("IRS") code for federal employment tax purposes. 28 Evidence of lawful behavioral control, lawful financial control, and the lawful relationship of the parties shall demonstrate the contract worker is not an independent contractor. The Agency shall make a written determination of this finding and maintain it in the Agency Procurement File.
In order to prevent potential confusion caused by the differences in the terminology of the IRS and the Mississippi Code, contractual personnel determined not to be (nor working for) independent contractors will be referred to as "contract workers" and are subject to the proper withholding of employment taxes. Mississippi Code Annotated §§ 25-9-120 and 27-104-7(5).
IRS Code stipulates that compensation paid to contract workers is subject to the same federal employment tax requirements as that of salaried workers. The contracting Agency is responsible for withholding and paying employment taxes for contract workers.
Agencies shall look to the most current IRS guidance regarding the definitions of an employee vs. an independent contractor to make the required written determination as to whether the Agency needs a contract worker as opposed to an independent contractor. Additional information can be found at www.irs.gov.
Generally, the Agency will issue an IRS Form 1099 to an independent contractor and an IRS Form W2 to a WIN contract worker. However, Agencies should make this determination on a case-by-case basis with the Agency's legal counsel and are discouraged from relying solely on the type of IRS Form issued.
The Agency Head or their designee shall adopt a standard operating procedure for procuring contract workers where the total contract value does not exceed $75,000.00. Such procedures shall provide for obtaining adequate and reasonable competition under the circumstances and for maintaining records of the procurement process. PPRB approval is not required.
Other than the procurement methods in Chapter 13, a procuring Agency may use any procurement method in these rules and regulations to procure contract workers whose total contract value will exceed $75,000.00.
Contract workers often function as staff augmentation or support a specific long-term project for the procuring Agency. Thus, the maximum period of performance in Section 14.3.1 does not apply to contracts with contract workers and a procuring Agency may choose to contract with a contract worker indefinitely. The contract worker shall be performing the scope of services and being paid the rate of pay contemplated in the original procurement (including any price adjustment language) at all points during the life of the contract. Should a change be needed to the scope of services and/or the rate of pay, the Agency shall issue a new solicitation in accordance with the rules and regulations herein seeking a contract worker to provide the revised scope of services and/or to be compensated at the revised rate of pay.
Agencies contracting with Mississippi state retirees as contract workers shall complete PERS Form 4B as required by Mississippi Code Annotated § 25-11-127. Additional information can be found at www.pers.ms.gov. A copy of the completed PERS Form 4B shall be contained in the Agency Procurement File.
28 Contract workers are assigned a worker identification number ("WIN") in MAGIC EC and SPAHRS.
12 Miss. Code. R. 9-7.1