Paying for Services
Please refer to university policy #3.5 for a complete discussion of paying for services (Independent Contractor/Consultant)
Each library unit must determine whether a service provider should be classified as an employee or as an independent contractor before any services are performed or requisitions are processed. Proper review and classification are critical to ensure cost-effective business practices, reduce risks and avoid penalties from the IRS and other agencies.
Decision Flow Chart
Answer these questions before submitting an independent contractor questionnaire to the service provider. Paying For Services Flowchart
Procedural Steps:
1) Unit submits an Independent Contractor Questionnaire to service provider to obtain general information about his/her business activities.
2) After receipt, unit completes Independent Contractor Checklist to evaluate and determine whether to reject or accept independent contractor status.
3) If a unit rejects independent contractor status, appoint as an employee through the Library Human Resources department.
4) If unit accepts independent contractor status, an Independent Contractor Agreement must be completed by the service provider and signed by staff with appropriate transaction authority.
5) Submit all completed forms along with the Library Purchase Request Form to Library Accounting Services for processing through University Purchasing.
Special Topics:
1) Payments Exempt from Independent Contractor Review
There are a limited number of payments that are exempt from the independent contractor review and can be paid by accounts payable voucher. I.e.: caterers, payments under $500. and Guest Lecturer. For IC complete exemption listing See appendix B.
All voucher payments require a contract except for a guest lecturer or subject fee.
2) Sponsored Project Consulting Agreements and Subcontracts
OSP has been delegated the responsibility for approval of "sponsored project consultants" and "subcontracts". Contact the Office of Sponsored Programs for processing information related to a sponsored consulting agreements, subcontracts, and contracts charged to cost sharing accounts.