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Independent Contractors w/ SSN

Effective July 1, 2019: Payments (regardless of the method) to an Independent Contractor (IC) for goods or services cannot be processed without a completed IC Agreement/Contract that has been reviewed by Purchasing and assigned a Contract Control Number (CC#).

Background Information

These guidelines are to clarify the University’s requirements and process for payments to an Independent Contractor (IC) with a SS# in the Poole College of Management.

An IC is a person, business or corporation that provides goods or services to the University. The terms must be specified in a written agreement/contract in order to protect both parties, as income is reported to the state. When procuring outside services (e.g. video production, web design, content writing, photography, entertainment) an IC Agreement/Contract must be completed and reviewed by Purchasing in advance of production or service.

Recommended lead time for the contract review process is four to six weeks.

Guideline and Process

Prior to contacting Office of Business Services (OBS) to request assistance with an IC Agreement/Contract, please be able to provide the following:

  • Completed IC Checklist (to confirm IC status).
  • Contract Type (e.g. advertising, guest speaker, instruction/training, performance).
  • Contract Value.
  • Contract Start/End Dates.
  • Project ID to charge the expense.
  • Scope of Work (SOW) to include anticipated payment schedule.
  • Sole Source Justification *if total amount may equal or exceed $5k then PO required.
  • W-9 and ACH *if a new supplier to the University (see the Forms page)
  • IC Contact Information (name and email address).

Note: An employee of the University cannot be paid as an IC.

OBS will then generate an IC Agreement to return to the Requestor, who will then submit to the IC for signature. A copy of the signed IC Agreement must be returned to OBS in order to move forward with the contract review process.

Note: Recommended lead time for the contract review process is four to six weeks.

Important Notes

  1. Purchasing will not review contracts retrospectively – no contract in place prior to engaging in a service results in no payment. 
  2. Payment processed via PCard is allowable; however, a CC# must be assigned in advance and a copy of the fully executed agreement/contract attached to the transaction as supporting documentation.

Expense Account Codes Used Most Frequently

  • 51925 – Video Transmission Support Services
  • 51990 – Other Current Services
  • 53929 – Service Agreement – Other
  • 53990 – Other Current Services
  • 53996 – Entertainment