Steps for Processing an Independent Contractor Payment
- Step 1: Fill out a Form W-9(First-time vendors only)
- Step 2: Complete the Determination Form
- Step 3: Complete the Professional and Personal Services Agreement (PSA) .xlsx .pdf
- Step 4: Fill out a New Vendor Form(First-time vendors only)
- Step 5: Send completed forms to the Budget Office through interdepartmental mail Attention: Cheri Waldrup (Box no. 5119) for approval by the Tax Compliance Officer.
- Step 6: For PSAs over 1,000 in a calendar year, submit a Requisition request. For PSA sunder 1,000, complete a Remittance Voucher and attach the corresponding Invoice.
The originating department should maintain a copy of all documents associated with an independent contractor payment request. If payment will total $1,000 or more, a Requisition must be submitted before work commences so that a Purchase Order can be created. At completion of services (or for each partial payment), originating department should acknowledge performance and forward original travel receipts, contractor's signed invoice, and other documentation to Accounts Payable in Procurement Services for payment. The department should also notate on the Remittance Voucher or Purchase Order that the original completed Personal Services Contract is in Purchasing.
Refer to The IRS Guidelines for Determining Worker Status and Policies and Procedures for Independent Contractors for specific procedures on determining employee versus independent contract status.
All PSA must be submitted with a Determination Form. A PSA will not be approved by the Tax Compliance Officer without a Determination Form.
All Independent Contractor reimbursed expenses must be processed on the PSA. No exceptions.