Contractor/Consultant

Following is some general information and the most common, pro-active steps Budget Managers and Department Heads can take to help ensure payments for Consultants and Independent Contractors are processed in expeditiously.

Determine the Service Providers Proper Classification

Before you engage a service provider, be absolutely sure of  their classification. If you are unsure if the service provider should be classified as an 'employee' of the College or as an 'independent consultant', use the following two documents to help guide you toward the proper classification.

• Service Provider Questionnaire
• Service Provider Evaluation Worksheet - The IRS 20 Factor Test
• Employee or Independent Consultant - Quick Guide

General Information:

• The Chancellor and Dean and the CFO are the only officers authorized to enter into Agreements on behalf of the College.
• Contracts valued at $50,000 or more require approval by the Board of Directors.
• Contracts extending more than two years in duration require approval by the Board of Directors.
• All Agreements must be approved as to form by General Counsel before they are signed by the CFO.

Processing Independent Contractor / Consultant Payments:

• Ensure sufficient budgeted funds are available.
• Secure a fully executed Agreement before the work commences. Refer to the Financial Policies and Procedure Manual, Exhibit X, for a sample Agreement.
• Attach a contract review form to the Agreement when sending it to General Counsel's office for review. Secure the signature of your division head before you submit to General Counsel's office.
• Allow 5 to 7 days for Agreements to be processed and reviewed by General Counsel and the CFO.
• Establish a purchase order in advance of the service date if the cost of service is $2,500.00 or more. Attach a copy of the fully executed Agreement to help expedite the purchase order.
• Do not pay independent contractors/consultants from your personal funds; you will not be reimbursed by the College. Most contractors and consultants must receive a 1099-MISC form and this form cannot be sent if the payment to the contractor / consultant is made by an individual.
• Secure a completed IRS W-9 form to the Agreement.
• Secure all necessary Forms for speaker/panelist travel reimbursement.