Processing a payment to an independent contractor or independent consultant has been simplified.
The Vendor Tax Information Form is required to collect the information necessary to establish that the individual contractor or consultant is not a university employee. The worksheet was created by the University Tax Services office under IRS guidelines and must be completed by the college or department before any payment for services will be made by the university.
Once the form is processed by the Vendor Maintenance Team, the vendor’s file will be updated. See update under the “Additional ID Numbers” link in vendor’s file – look for CPW day/mo/yr next to “Our Customer Number.” The date reflected in the vendor file will correspond to the date the Vendor Tax Information form is processed by the Vendor Maintenance Team. A new Vendor Tax Information form must be submitted each calendar year per IRS guidelines.
|For payments totaling less than $5000 in a calendar year||
|For payments totaling more than $5000 in a calendar year*||Encumber the funds by creating a MyUF Market requisition for a purchase order.|
* Requisitions for $5001 and more require either two or more quotes or justification for selecting the individual. Include quotes/justification in the Internal Comments section of the requisition. Departments are responsible for ensuring these requirements are met prior to services being provided. If the service has already started or the service has been provided, complete the Confirmation Purchase Request form. Include a justification why the services were performed before a requisition was submitted in the Internal Comments section of the requisition.
Unencumbered transactions to independent contractors and professional consultants are appropriate when the payment is for low dollar, clearly defined services. The department paying for the services should ensure the vendor understands:
- what work is expected
- when the work is expected to be completed
- how much they will be paid.
If the work requires multiple payments, or the work requires definition beyond a simple task you may want to consider creating a requisition which clearly defines the ‘rates, dates and deliverables’. If the vendor requires a UF purchase order to proceed, please include an internal comment so Procurement is aware the vendor requires a purchase order.
Complete a MyUF Market Requisition. Refer to the instruction guide for Shopping Using a Form for Service.