TO: Budget Account Managers
FROM: Evelyn Wilson
DATE: July 17, 2003
SUBJECT: Employee vs. Independent Contractor
To increase efficiency and timely processing of transactions when university departments are securing services from individuals, Financial Services is revising the Employee vs. Independent Contractor process. Please note the following:
- University employees, Members of Their Immediate Families and Employees of Other State Agencies:
- No change in current policy and procedures; these categories of personnel are required to be paid for appropriate services through the payroll function.
- Independent contractors:
- Departments should enter a purchase request (PR) into IFAS for appropriate approval.
- Materiel Management & Contracts (MMC) will review the PR for compliance with the employee/independent contract procedures.
- If MMC determines the request should be classified as an independent contractor, the PR will be turned into a purchase order (PO). The department must complete a receiveing report and provide a written request or invoice to Accounting Services for payment to be executed.
- If MMC cannot determine the appropriate classification with the information contained on the PR, the department will be contacted and requested to submit the Independent Contractor/Employee Status Certification form and Independent Contractor/Employee Status Determination form (available here). Upon review of the completed forms, MMC will notify the requesting department of the final determination.
- If the classification is determined to be an employee, the department must submit a PR40 for appropriate approval and to initiate the payroll process.
- If the classification is determined to be an independent contractor, the PR will be turned into a PO. The department must complete a receiving report and provide a written request or invoice to Accounting Services for payment to be executed.
- MMC will provide copies of approved forms to the requesting department and Accounting Services.
- MMC and Accounting Services will maintain documentation for audit purposes.
Please disseminate this information to members of your department. If you have any questions, please contact Hubert Barton, Rick Seaberg, or me.