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Payments to Non-Employee for Services Rendered

  • Last Updated: 06/22/2016
  • Effective Date:

Policy Statement

Payments may be made to a non-University employee who has provided services to the University. Such payments may also include reimbursement for expenses incurred by the payee.

Payments for fees and expenses should be listed separately on the Non-Employee Payment Form as well as the check request created through the Electronic Check Request System. A link to this system can be found under Related Information, and the Non-Employee Payment Form is located in the Forms/Instructions section of this policy. Original documents must be submitted to support reimbursable expenses, and these expenses will be recorded as “per diem and fees”.

Reimbursement of expenses must be made to the individual who incurred the expenses. Prospective employees may be reimbursed for travel expenses under this policy.

The University will comply with all IRS policies that address the potential classification conflict between independent contractors and employee. Staff should contact the Accounts Payable or Payroll office in advance to determine if a person who will perform services for the University should be paid as an employee or independent contractor.

When payment is requested for a professional, business establishment, or any other organization for rendering a service, an invoice is required along with the Non-Employee Payment Form. When an invoice is provided, the signature of the payee is not required on the form, and the total payment to the payee will be considered as a fee. However, if an invoice is not included, the payee must sign the Non-Employee Payment Form.

Payments will not be made in advance of service performance.

A letter of justification must be included as part of the supporting documents for an expenditure
request to pay a relative of an employee when the relative is used as a consultant by a department, and the transaction must comply with the Conflict of Interest Policy (a link to this policy can be found below under the Related Information heading). The letter of justification must accompany the University Consulting Agreement Form or Non-Employee Payment Form. Links to these forms are provided in the Forms/Instructions section.

Payments for consulting fees may be made for professional services rendered by non-University employees only. Please refer to the Consulting Services Policy (link provided under Related Information) for procedures relating to paying consultants.  The procedures will be in effect regardless of the source of funding. A link to this policy can be found under Related Information.

Additional requirements exist when paying non-resident aliens. The intended recipient’s visa type determines the type of payment that UGA may legally process to the person. All UGA payments to non-resident aliens are subject to withholding taxes and are reportable to the Internal Revenue Service. Payments to non-resident aliens are also reviewed by the University’s International Tax Coordinator. Please consult the Payments to Internationals Website for more information. A link to this website is included under Related Information.

Reason for policy
This policy is to define the University’s commitment to comply with IRS Policies.
Procedures

For payments to an individual:The Non-Employee Payment Form should be completed and signed by the payee and an approving official in the university department. However, if an invoice is provided, the payee signature is not required on the Non-Employee Payment Form. The completed Non-Employee Payment Form should be attached to an electronic check request and submitted for payment.

For payments to a company:The Non-Employee Payment Form should be signed by an approving official in the university department. However, if an invoice is provided, the payee signature is not required on the Non-Employee Payment Form. The Non-Employee Payment Form should be accompanied by an invoice, and both documents should be attached to an electronic check request and submitted for payment.

Forms/Instructions
Additional contacts

For Non-Resident Alien Payments, Susan Caldwell

Phone Number: (706) 542-3431

Responsibilities

Responsible University Senior Administrator: Vice President for Finance & Administration

Responsible University Administrator: Associate Vice President & Controller

Policy Owner:Accounts Payable

Policy Contact: Sarah Garner

Phone Number: (706) 542-2786

Record Retention

Research Grant Records
Number 0472-09-006
These records relate to funded research grant proposals and research activity associated with grant funded projects.  Examples of records include:  supporting statistics, demographic data, draft proposals, suggested revisions, final proposals, forms, protocols, applications, research/activity reports, progress reports, and summary reports.
Retention:  Final research report is permanent.  All other records: 7 years after the end of the grant period.

 

Accounting Records
Number 0472-03-001
This series includes bank statements, purchase requests, purchase orders, requisitions, financial reports, accounts payable and receivable records, write-off records, discrepancy, payment schedules, operating statements, year-end projections, reconciliation and expenditure reports, cancelled checks, check stubs, moving expense records, cost accounting reports, refund/disbursement request records, returned checks, deposit slips, travel records, credit voucher requistion records, cash balances and reconciliations, sales and cash reconciliation records, journal entries, outstanding obligations, refund/disbursement requests, receipts and invoices.
Retention:  Monthly and quarterly reports:  1 year.  All other records:  5 years.