Consulting / Independent Contractors - HR Policy 127

Consulting / Independent Contractors - HR Policy 127

Abstract:
This policy details the specifications for compensating consultants or independent contractors.
Effective Date:
2/1/2009
Responsible Party:
Contacts:
None Assigned
Administrative Category:
Applies To:
Faculty, Staff
Material Original Source:

Policy 127 – Consulting / Independent Contractors

Date Issued: 06/89
Date Revised: 02/09

Prior to the performance of any consulting or personal services work, the Office of Financial Affairs must determine the status of the individual to be paid as "employee" or "independent contractor". Individuals determined to be "employees" for a given service will be paid through Payroll Services, subject to proper tax withholdings. Individuals determined to be "independent contractors" for a given service will be paid through Accounts Payable, not subject to tax withholdings.

Current UAB employees, regardless of UAB assignment category, must be paid through the UAB payroll system for all services, except those services specifically entitled to independent contractor treatment If payment for an independent contractor service rendered by someone who is otherwise a UAB employee is to be made from a grant or contract, the Office of the Vice President for Research must approve the request prior to its being reviewed by the Office of Financial Affairs.

Consulting pay to an “employee” may be processed via Policy 130 – Special Payment of Special Programs. Active UAB employees should refer to HR Policy 129.

See also the following six policies:
HR Policy 118 – Hiring Temporary/Irregular Employees
HR Policy 130 – Special Payment of Special Programs
HR Policy 411 - Assignment Category Determination
HR Policy 129 – Internal Consulting
Personal Services Approval and Payment Policy – Non-UAB Employees found in the UAB Policy Reference Manual
Personal Services Approval and Payment Policy - UAB Employees found in the UAB Policy Reference Manual.