Skip navigation

Office of the Controller

Steps for Processing an Independent Contractor Payment

Page Content

Processing Steps

The following steps will start the approval process for services to be rendered and paid by the University. Please note the "Name" field and "Tax Identification Number" (SSN, TIN, ITIN, or EIN) field MUST be the same on all forms submitted for payment.  

  • Step 1: Fill out appropriate Federal Tax and Foreign National Information Forms
    • U. S. Citizen or U.S. Entity fill out Federal Tax Form W-9. Download the W-9 form and/or Instructions (Must have completed W-9 form on file),
    • Foreign National Information.  Download and complete the Foreign National Information Form (PDF) and the W-8BEN form and/or instructions.
    • Foreign Entity Information.  Download and complete the Foreign Corporation Information Form (DOC) and the appropriate W-8 form from the list below:
      • Form W-8 BEN-E, Certificate of Entities Status of Beneficial Owner for United States Tax Withholding and Reporting (Entities).
        Download the form and/or instructions under the Current Products section.
      • Form W-8 ECI, Certificate of Foreign Person's Claim That Income Is Effectively Connected With the Conduct of a Trade or Business in the United States. 
        Download the form and/or instructions under the Current Products section.
      • Form W-8 IMY, Certificate of Foreign Intermediary, Foreign Flow-Through Entity, or Certain U.S. Branches for United States Tax Withholding and Reporting.
        Download the form and/or instructions under the Current Products section.
      • Form W-8 EXP, Certificate of Foreign Government or Other Foreign Organization for United States Tax Withholding and Reporting.
        Download the form and/or instructions under the Current Products section.
  • Step 2: Fill out a New Vendor Registration Form (PDF) (for First-time vendors only). If Not Applicable (N/A), skip to Step 3.
  • Step 3: Complete and attach the Independent Contractor Determination Form (DOC)
  • Step 4: Attach the contract/PSA (XLSX) or (PDF). ALL payments for services MUST have a written quote/agreement/contract/ that includes a scope of work. You may have a separate contract or you may complete the Professional and Personal Services Agreement (PSA). The PSA document is USM's internal personal services contract template.  Please use the following document when a separate contract exists:  (XLSX) or (PDF)
  • Step 5: Send all completed and applicable forms from the above steps (step 1-4) to the Controller's Office through interdepartmental mail (Box no. 5143) or through email at PSAFREEMississippi for approval by the Tax Compliance Officer.
  • Step 6: For an Independent Contractor payment under $600, complete a Remittance Voucher and send to Accounts Payable through interdepartmental mail (Box no. 5104) for payment processing.
  • Step 7: For an Independent Contractor payment over $600, you’ll need to submit a Requisition Request through SOARFIN to Purchasing. Once you have a Purchase Order number and payment is due, then submit an accurate invoice to Accounts Payable for payment processing.

Addendum to existing PSA

  • If you need to make a change to extend work or increase the payment for an existing PSA, please download and complete the addendum (XLSX) and attach the original PSA.  Send through the original steps for approval.  There shouldn’t be more than one or two addendums that need to be made for a PSA unless it is with a separate contract.  If you continue to have changes, please term the current PO with Accounts Payable and submit a new PSA. 

 Important Processing Information

  • I.R.C. Section 1441 (c) (1) The federal withholding exemption for effectively connected income does not apply to the personal services income of a Nonresident Alien. As such, a 30% federal tax withholding rate would apply.
  • The originating department should maintain a copy of all documents associated with an independent contractor payment request. If payment is $600 or more, a Requisition must be submitted before work commences to create a Purchase Order. Upon completion of services (or for each partial payment), the originating department should acknowledge performance and forward 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 Professional and Personal Services Contract is in Purchasing.

Refer to The IRS Guidelines for Determining Worker Status or Independent Contractor (Self-Employed) or Employee? guide for specific procedures on determining employee versus independent contract status.

Get my W-2

The Get My W-2 request form is designated for use by former employees of USM.

Contact Us

Office of the Controller
Bond Hall 230
118 College Drive #5143
Hattiesburg, MS 39406

Hattiesburg Campus

Campus Map