Hiring an Independent Contractor for Personal Services
First, we need to determine if:
- Is the service provider is incorporated? (Will the check be payable to a company?)
- Does s/he work for, or has s/he retired from, for a NC state institution?
- Is s/he a current student of UNCW?
- Is s/he is a citizen of a foreign country (including Canada).
- Is a grant being used for payment?
(If “yes” is the answer to the first, we would use a requisition/purchase order and the Contract would not be necessary. If “yes” answers the second or third, we would contact HR, and if “yes” to the fourth, we will need to identify the nationality, visa type, and other information. If “yes” to number 5, we will not only create a contract, but a requisition will need to be entered and its number noted on the top of the contract.)
If “no” is the answer to all of the above bullets, we will proceed with the contract.
To process the contract, we’ll be creating a package, consisting of:
- The Contract.(contact Purchasing for a current template) If the amount we are paying is more than $2500 in a calendar year, we are required to create a contract. (For amounts less than $2500, it is recommended, but optional.) The contract needs to be signed and dated by the individual we are hiring. On the first page please indicate the name and address of the person, as well as the name of the Contract Administrator, department, and completion date of service. You will also need to complete the Scope of Work (Schedule A) which includes the services that the vendor is expected to perform as well as additional info or specific criteria that you have, whatever you need to include that makes the contract as clear and complete as possible. The fees should be all inclusive. (Hotels, travel, supplies should not be billed separately if at all possible). The sections a, b, & c may be reformatted, edited, or deleted to suit your project. Compensation (Schedule B) should fully detail the rate and schedule for the service provider’s pay. Generally, we pay with one check upon the successful completion of services, net 30. For longer projects we may create “milestones” .So in the event you want to make two payments to the vendor, we might have something like: “Fee totaling $3500.00, to be split in two payments of $1750.00. The first payment is to be paid upon the completion of Milestone 1. The balance will be paid once project is completed”
- Independent Contractor Payment Certification Required for all independent contractors, regardless of the paid amount, the form (located at: http://www.uncw.edu/ba/finance/Purchasing/forms.html) also completed and signed by Budget Authority and vendor.
- A copy of each person’s curriculum vitae, resume, or biography.
- For Personal Services in excess of $5,000.00, a signed letter by the UNCW initiator, addressed to the Director of Purchasing Services. This memo will need to justify this contractor as the sole source of the services that s/he is providing and establish that the fee to be paid has been researched and found to be a fair and reasonable in amount.
Once the documents are together in the “package”, they will go to HR to the attention of Credentials Verification Assistant, phone 2103, fax 3840. Using the resume and contract as background documents, she will review item the Independent Contractor Payment Certification form, approve, and return a signed copy to you.
The entire package needs to come to Purchasing, to the Asst. Director’s attention. Once fully executed, copies of the completed documents will be sent to the vendor and the contract’s administrator.
When the time comes for payment, a check request is prepared by the department and sent directly to Accounts Payable with copies of the above documents.
