Personal Services Approval and Payment Policy - Non-UAB Employee

Personal Services Approval and Payment Policy - Non-UAB Employee

Abstract:
Financial Affairs must approve all independent contractors. Application for requesting to be treated as an independent contractor must be made on the form provided by Financial Affairs.
Effective Date:
3/10/2000
Contacts:
None Assigned
Administrative Category:
Applies To:
Faculty, Staff
Material Original Source:

University of Alabama at Birmingham

PERSONAL SERVICES APPROVAL AND PAYMENT POLICY -- NON-UAB EMPLOYEE

March 10, 2000

See also "Personal Services Approval and Payment Policy -- UAB Employee."

Introduction

The University of Alabama at Birmingham must ensure that payments to individuals who are not current UAB employees (as defined below) for services rendered to UAB are handled in accordance with Internal Revenue Service requirements and other governmental regulations and that such payments provide consistent treatment across the institution. Determination of the proper treatment of payments for personal services involves legal and regulatory issues which are institutional in nature.

Definitions

As used in this policy, the following terms have the indicated meanings:

Individual -- Person, sole proprietor of a business, or an owner of an unincorporated business.

Current UAB Employee -- Any individual who is appointed currently to the UAB payroll or who reasonably is expected to be paid in the future through the UAB payroll for any type of employee service.

Personal Services -- Work performed for UAB by an individual for which compensation is to be paid including, but not limited to, salary, wages, consulting fees, and honorariums.

Policy Statement

Persons who are not current UAB employees may be considered independent contractors, but they must have applied to, and been approved by, Financial Affairs for such status. Application for requesting to be treated as an independent contractor must be made on the form provided by Financial Affairs.

A copy of the completed, pre-approved form must be attached to each requisition for payment.

Determination of status must be made prior to commitments to the worker and prior to the performance of any work.

Implementation

The Vice President for Financial Affairs and Administration is responsible for implementation of this policy through UAB Financial Affairs. Questions regarding this policy should be directed to the Executive Director of Accounting.