University of Alabama at Birmingham
PERSONAL SERVICES APPROVAL AND PAYMENT POLICY -- UAB EMPLOYEE
March 10, 2000
(Replaces policy entitled “Personal Services Approval and Payment Policy” dated June 21, 1989)
Personal Services Approval and Payment Policy -- Non-UAB Employee
The University of Alabama at Birmingham must ensure that payments to its employees (as defined below) for services rendered to UAB are handled in accordance with Internal Revenue Service requirements, other governmental regulations, and UAB policies and that such payments provide consistent treatment across the institution. In instances in which a current UAB employee is to provide services which previously have not been part of the employee’s responsibilities, the employee and the supervisor will determine whether the additional services are to be considered part of the employee's regular workload. If the services are not part of the employee's regular workload, the stipulations of this policy must be followed. Determination of the proper treatment of payments for personal services involves legal and regulatory issues which are institutional in nature.
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 this or any other 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.
Current UAB employees (as defined above) should be paid through the UAB payroll system for all services, except those services entitled to independent contractor treatment regardless of the person's UAB employment status. Application for independent contractor status 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.
The determination as to whether services are entitled to independent contractor treatment will be made by Financial Affairs.
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.