Independent Contractors are outside companies or individuals that provide services to the university. They are subject to the same regulations as other commodities and if their services exceed $75K, they must be publicly bid or legal authority otherwise provided.
Services provided by individuals or individual proprietorships require the submission of a "Consulting and Professional Services Worksheet" (also known as "Independent Contractor's Form" or "IC Worksheet"). Instructions for completing the form are available.
• The "Consulting and Professional Services Worksheet" must be signed by an Accountable Officer with payroll authorization, and by the contractor. The document must be completed, signed and attached to the requisition header comment when submitted to Purchasing Services for approval.
• The department must explain the work being done so that Purchasing can make a decision on whether to approve the requisition or reject it to the department with instructions to put the individual in question on payroll. The guidelines that accompany the "Worksheet" will help the department determine if the individual is eligible for independent contractor status.
• Some rules of thumb: no USF employee can be deemed an independent contractor; no one doing work that can be defined as clerical or secretarial can be considered an independent contractor; persons receiving payment on a payroll type of schedule (weekly or monthly) is considered to have on "ongoing" relationship with the university and thus an employee; an ongoing" relationship can also exist if the person has been hired to perform the same service in the past unless they are in the business of supplying that service to other organizations besides USF.
• Entertainers and lecturers are generally defined as independent contractors. The department should provide the brochure or advertisement with the entertainment/lecture information along with the worksheet.
• Consultants who work over a long a period of time can sometimes be justified with documentation of legal authority such as grant guidelines (i.e. narrative or proposal). A description of the work they are doing and why no one at USF can do this will be helpful in getting comptroller's approval.
• If the contractor's travel was reimbursed in addition to his/her fee, the department should note this on a requisition comment. Standard Comment REQ TRVL can be used for this purpose.
Non-US citizens hired for services performed in part or in full in the United States and it's territories require approval from Payroll. The work and payment terms are reviewed with regard to Treaties between the worker's country and the United States.
Departments must send the following documents to Payroll for review and approval:
- W8-BEN Certification for Foreign Status for Withholding OR
- W-7 Application for IRS Individual Taxpayer ID Number (whichever is applicable)
- FNIF - USF Foreign National Tax Information Form
- Passport showing expiration date
- Visa (except when exempted by treaty)
- I-94 Arrival/Departure card - copy both sides of card. Ensure that the date stamped is legible
Once approved, Payroll will forward and approval letter to the department. A requisition should then be entered with the following documentation:
- Letter of Approval from Payroll
- Independent Contractor Worksheet (IC Instructions)
- Quote from vendor
- DO NOT ATTACH OTHER DOCUMENTATION TO THE REQUISITION. The information contained on a W8-Ben, W-7, FNIF, passport or Visa is PRIVATE. If necessary, it will be sent by Payroll to Accounts Payable when payment is requested.
All non-resident aliens providing services in the United States must be approved through Payroll. An "Independent Contractor Worksheet" is among the documents required.