Transcript Independent Contractor - Keene

Independent Contractor
Hiring Process
PURPOSE:
 To outline the procedure for determining use of
Independent Contractor Agreements (also
called: service providers, consultants, or
ICAs); and for submitting and processing ICA
forms and Banner documents.
 When to hire an Independent Contractor
 What is needed for paperwork
 Who signs the contract
1
Independent Contractor
Hiring Process
Why Is An ICA Needed?
An Independent Contractor typically meets the
following requirements:
 Provides a unique service that is not available
from another source within USNH or USNH
entities could not provide the service at the time
needed (i.e. due to time/staffing constraints,
capabilities, etc)
2
Why Is An ICA Needed?
Continued
 Provides a unique service outside of USNH. The
individual should be uniquely qualified, cost
effective and may meet other criteria. (i.e. expert
in research field, etc.)
 Provides a service which encompasses 3 days or
more per fiscal year, including services provided
to any other USNH department, regardless of
dollar amount. To see if a vendor (individual) has
been paid by any USNH Department during the
fiscal year, go to FAIVNDH in Banner. Any/all
payments that have been processed will be there.
3
Why Is An ICA Needed?
Continued
 Is an individual or partnership, rather than a
corporation
 Non-profits, i.e. state or federal government
agencies, universities, etc., do not require an ICA
 Does not meet the IRS definition of “employee”
 Is not a USNH employee
 Does not have a personal or familial relationship
with a USNH employee
NOTE: Forms/Documents not meeting these
requirements or incomplete forms will be returned
to the department
4
How Do I Know If An Entity
Is An Individual Or
Corporation?
 To determine whether an ICA is coded as a
corporation or non-corporation, Banner users can
log into FTMVEND and search by entity name.
Entities coded as corporations are listed with a
letter “C” under the “E” column.
 Once the vendor has been found, double click on
the “ID” number to bring the information
forward and then do a “NEXT BLOCK”.
5
How Do I Know……?
Continued
 Click on the “Vendor Types” tab. Types of
codes are listed with a description. If the vendor
is coded as either a “Sole Proprietor” or
“Partnership”, an ICA must be completed
before the vendor begins work on campus.
There may instances when you may want to use the
ICA form for an entity other than an individual or
partnership, or instances where you may wish to
use the entity’s own agreement in lieu of the ICA.
Please contact KSC Purchasing for direction.
6
Independent Contractor
Agreement Procedures
1. Hiring Administrator determines that project requires an Independent
Contractor to assist/complete work.
2. Before any work is started and/or before committing to any individual,
hiring Administrator completes an Independent Contractor Agreement
(ICA) form located at www.keene.edu/purchasing/forms.cfm
providing the following:
a.
b.
c.
d.
e.
f.
g.
h.
Independent Contractor contact information (Section II)
Hiring Administrator contact information (Section III)
Description of anticipated service (Section IV)
Dates of anticipated service (Section IV)
Fees & payment arrangements (Section V)
Selection process for choosing ICA (Section VI on page 2)
Funding source (grant) (Section VI)
Employee vs. ICA Determination Checklist (Page 3)
7
Procedures Continued
3. Hiring Administrator forwards completed Independent Contractor
Agreement for signature.
4. Independent Contractor Signs the Agreement and returns it to the
Hiring Administrator.
Note: If the Independent Contractor is not already an active
USNH/KSC vendor, he/she will also need to submit a substitute W-9 form
also located at: www.keene.edu/purchasing/forms.cfm so that a vendor
code can be created in Banner.
5. Hiring Administrator signs the Agreement as Hiring Administrator and
gives it to the Administrative Assistant contact.
8
Procedures Continued
6. The Administrative Assistant contact does the following:
a. Enters a Requisition or Direct Pay document for the Independent
Contractor in Banner.
b. Forwards the Independent Contractor Agreement directly to the
Campus Purchasing Department. Original is preferred but a faxed
copy is acceptable.
c. Forwards the Substitute W-9 with the agreement if applicable.
d. Retains a copy of the Independent Contractor Agreement for his/her
records.
9
Procedures Continued
7. Campus Purchasing Department will do the following:
a. Enter the Substitute W-9 information into Banner to create a vendor
code (if applicable).
b. Review the ICA.
c. Verify insurance coverage (or confirm that it is not needed)
d. Apply final signature(s).
e. Convert the Banner Requisition to a Purchase Order and process or
sign off on the Direct Pay cover sheet.
f. Print and mail the Purchase Order to the Independent Contractor
(unless otherwise instructed by the Administrative Assistant
contact).
8. Any future dollar increases or extensions of time will require an
Amendment to be completed, signed and forwarded through the
appropriate channels (as the original ICA was). This form can be found
at www.keene.edu/purchasing/forms.cfm. A change order to the
purchase order will be entered to cover showing the increase.
10
Independent Contractor
Agreement
NOTES
1. Legal services, insurance services or any type of
accounting or auditing services cannot be
processed as an ICA without special approval.
2. Bid limit ($10K) still applies on ICAs – even
when written in a grant. (So contact Purchasing
early.)
3. One time payments without a vendor code
cannot be paid with a Direct Pay document.
11
Independent Contractor
Agreement Wrap Up
Contact Purchasing:
 If you would like personal ICA training for
anyone in your area.
 If you have suggestions of how we can do this
better
 With any additional questions
12