GAP NO. 101.9
Paying Individuals Who Do Not Qualify As Independent Contractors
I. GENERAL
This procedure gives instructions on how to pay individuals hired as independent contractors, whom because of the Independent Contractor Checklist (ICC) results are considered employees, and therefore are paid on the Corporate Payroll System.
II. INDIVIDUALS NOT CURRENTLY ON PAYROLL WHO WILL BE PAID NO MORE THAN TWO PAYMENTS PER CALENDAR YEAR
Before individual begins work:
- Contact Rewards and Recognition to determine if the work performed will be exempt or nonexempt.
- Complete an I-9 Form. The appropriate International Office must complete foreign national’s I-9 form.
After services are performed:
- Complete a Supplemental Payment Form. Write "ONE-TIME PAYMENT" across the top of form.
- Payee must complete W-4 and NC-4 tax withholding forms.
- Send all forms as a packet to the HRIC after obtaining all Departmental and Budgetary signatures.
- Payments to nonexempt payees are made on the biweekly payday. Payments to exempt payees are made on the monthly payday. Full fringe benefit rates are charged.
- A Termination Form is not necessary for individuals paid this way.
III. INDIVIDUALS NOT CURRENTLY ON PAYROLL, RECEIVING MORE THAN TWO PAYMENTS AND PROVIDING SERVICES FOR LESS THAN 90 DAYS
Contact Rewards and Recognition to determine if the work performed will be exempt or nonexempt.
A. BIWEEKLY (Nonexempt) casual labor
- Complete a Hire Form (refer to GAP 101.1, Employment – Payroll System)
- Complete an I-9 Form before person begins work. The appropriate International Office must complete foreign national’s I-9 form.
- Submit all required forms to the HRIC.
- Individual completes timecards for work performed.
- Individuals are paid on the biweekly payday. Full fringe benefit rates are charged.
- Department must process a Termination Form (refer to GAP 101.3, Termination of Employees) immediately after the individual has received payment for all services rendered.
B. FACULTY/STAFF (Exempt)
These individuals are not casual labor. Pay according to the instructions for more than 90 days (section IV).
IV. INDIVIDUALS PROVIDING SERVICES FOR MORE THAN 90 DAYS
- Contact Rewards and Recognition to establish a position.
- Complete a Hire Form using the assigned position code (refer to GAP 101.1, Employment – Payroll System).
- Complete an I-9 form before person begins work. The appropriate International Office must complete foreign national’s I-9 form.
- Submit all required forms to the HRIC.
- Payments to nonexempt payees are made on the biweekly payday. Payments to exempt payees are made on the monthly payday. Full fringe benefit rates are charged.
- Department must process a Termination Form (refer to GAP 101.3, Termination of Employees) immediately after the individual has received payment for all services provided.
| GAP History |
| Issued: |
February 1995 |
| Revised: |
July 2002 |
