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Independent Contractor Procedure

Procedure for Paying Independent Contractors

Sponsored Projects and Non-Sponsored Projects

Payments to individuals on sponsored projects

Refer to GAP 200.370 for Purchasing goods and services on sponsored projects. http://finance.duke.edu/accounting/gap/m200-370.php

  • Work should not begin until a contract is executed by both parties and compliance requirements confirmed.
  • Before the individual starts working, first determine if this is an independent contractor by filling out the ICC checklist.
    • Current and previous employees of Duke cannot be paid as an Independent Contractor
    • The independent contractor checklist has to be filled out each time the ICC is paid, not just one time.
    • If they are a corporation, they do not need to complete the ICC
  • If the individual is non-resident alien, go to this link to fill out proper documents.   http://finance.duke.edu/procurement/procure/ap/fornat/index.php
  • Determine if sponsor approval is required or if a re-budget is necessary.
  • Forms/documentation required to be completed and provided by the contractor:
    • Estimate of total cost
    • RSSA and Rider
    • ICC
    • Proof of insurance
    • OSA Insurance Waiver, if necessary
    • ORA FCOI (Financial Conflict of Interest) if necessary
  • If they are a new vendor, they must complete the Vendor Registration documents:
    • Statement of Compliance
    • Vendor Registration Form
    • W9
  • Submit the RSSA, Rider, Insurance or OSA insurance waiver form, and W-9 (if necessary) to Corporate Risk for approval. They will send an email with their decision.
  • If the total cost of the engagement is less than or equal to $2,500, an AP check request can be submitted for payment. If the total cost is more than $2,500, a Purchase Order has to be submitted in the Buy@Duke system.
  • Documents required to submit PO in Buy@Duke:
    • Estimate of total cost
    • RSSA and Rider
    • ICC
    • Proof of insurance, or
    • OSA Insurance Waiver
    • ORA FCOI (Financial Conflict of Interest) if necessary
    • New Vendor Compliance forms, if necessary
    • Email from Corporate Risk
    • Use the GL code 622029 so that it will route to the Pre-Award office for approval prior to it being submitted to Procurement
    • Use Material Group 017
  • If multiple payments will be necessary, the PO can be set up two ways:
    • Set up the PO with xx number of payments @ $xxxx each (ie, 5 payments of $250 each for a total of $1,250)
    • Create a Standing Purchase order for the set length of time and the total amount to be paid. Then submit the invoices as received. If more money is needed to add to the PO, that can be done by contacting Procurement.
    • Upon receipt of invoices for work done, they need to be reviewed in a timely manner then submitted to A/P. Write the Purchase Order number on them.
    • Duke policy is Net 30 days from the date on the invoice. The invoice must not be back dated just to speed up payment.

A checklist has been created to help with this process. The link to access each of the required forms is included in the checklist: Independent Contractor checklist

Payments to all other individuals on unrestricted codes

Refer to GAP 200.134 All Other Payments to Individuals for Services

http://finance.duke.edu/accounting/gap/m200-134.php

  • Work should not begin until a contract is executed by both parties and compliance requirements confirmed.
  • Before the individual starts working, you must first determine if this is an independent contractor by filling out the ICC checklist.
    • Current and previous employees of Duke cannot be paid as an Independent Contractor
    • The independent contractor checklist has to be filled out each time the ICC is paid, not just one time.
    • If they are a corporation, they do not need to complete the ICC
  • If the individual is non-resident alien, go to this link to fill out proper documents.   http://finance.duke.edu/procurement/procure/ap/fornat/index.php
  • Forms/documentation required to be completed and provided by the contractor:
    • Estimate of total cost
    • Outside Services Agreement
    • ICC
    • Proof of insurance
    • OSA Insurance Waiver, if necessary
    • FCOI (Financial Conflict of Interest) if necessary
  • If they are a new vendor, they must complete the Vendor Registration documents:
    • Statement of Compliance
    • Vendor Registration Form
    • W9
  • Category 1 Services (Technical Specialists, Graphic Designers, Computer Programmers, Staff augmentation, Services requiring access to Patient Information)
    • Outside Services Agreement
  • Category 2 Services (Architects, Attorneys, Auditors, Guest Speakers, Musical or theater production groups, Musicians [ICC not required] Payments to the PDC [ICC not required], performing artists [ICC not required]
    • Accounts Payable Check Request (less than $2,500)
    • Copy of contract
    • Invoice
    • GAP 200.136, Accounts Payable Check Request
    • DUHS departments must first route the forms to the appropriate Health System Finance Office for approval.
  • Submit the OSA, OSA insurance waiver form, and W-9 (if necessary) to Corporate Risk for approval. They will send an email with their decision.
  • If the total cost of the engagement is less than or equal to $2,500, an AP check request can be submitted for payment. If the total cost is more than $2,500, a Purchase Order has to be submitted in the Buy@Duke system.
  • Documents required to submit PO in Buy@Duke:
    • Estimate of total cost
    • ICC
    • OSA
    • OSA Insurance Waiver
    • FCOI (Financial Conflict of Interest) if necessary
    • New Vendor Compliance forms, if necessary
    • Use GL code 691600 for companies, 622000 for individuals
    • Use Material Group 017
  • If multiple payments will be necessary, the PO can be set up two ways:
    • Set up the PO with x number of payments @ $xxxx each (ie, 5 payments of $250 each for a total of $1,250)
    • Create a Standing Purchase order for the set length of time and the total amount to be paid. Then submit the invoices as received. If more money is needed to add to the PO, that can be done by contacting Procurement.
    • Upon receipt of invoices for work done, they need to be reviewed in a timely manner then submitted to A/P. Write the Purchase Order number on them.
    • Duke policy is Net 30 days from the date on the invoice. The invoice must not be back dated just to speed up payment.

A checklist has been created to help with this process. The link to access each of the required forms is included in the checklist: Independent Contractor checklist