Independent Contractor Hiring Process

1. Independent Contractor Hiring Process PURPOSE: • To outline the procedure for determining use of Independent Contractor Agreements (also called: service providers, consultants, or ICAs); and for submitting and processing ICA forms and Banner documents. • When to hire an Independent Contractor • What is needed for paperwork • Who signs the contract

2. Independent Contractor Hiring Process Why Is An ICA Needed? An Independent Contractor typically meets the following requirements: • Provides a unique service that is not available from another source within USNH or USNH entities could not provide the service at the time needed (i.e. due to time/staffing constraints, capabilities, etc)

3. Why Is An ICA Needed?Continued • Provides a unique service outside of USNH. The individual should be uniquely qualified, cost effective and may meet other criteria. (i.e. expert in research field, etc.) • Provides a service which encompasses 3 days or more per fiscal year, including services provided to any other USNH department, regardless of dollar amount. To see if a vendor (individual) has been paid by any USNH Department during the fiscal year, go to FAIVNDH in Banner. Any/all payments that have been processed will be there.

4. Why Is An ICA Needed?Continued • Is an individual or partnership, rather than a corporation • Non-profits, i.e. state or federal government agencies, universities, etc., do not require an ICA • Does not meet the IRS definition of “employee” • Is not a USNH employee • Does not have a personal or familial relationship with a USNH employee NOTE: Forms/Documents not meeting these requirements or incomplete forms will be returned to the department

5. How Do I Know If An Entity Is An Individual Or Corporation? • To determine whether an ICA is coded as a corporation or non-corporation, Banner users can log into FTMVEND and search by entity name. Entities coded as corporations are listed with a letter “C” under the “E” column. • Once the vendor has been found, double click on the “ID” number to bring the information forward and then do a “NEXT BLOCK”.

6. How Do I Know……? Continued • Click on the “Vendor Types” tab. Types of codes are listed with a description. If the vendor is coded as either a “Sole Proprietor” or “Partnership”,an ICA must be completed before the vendor begins work on campus. There may instances when you may want to use the ICA form for an entity other than an individual or partnership, or instances where you may wish to use the entity’s own agreement in lieu of the ICA. Please contact KSC Purchasing for direction.

7. Independent Contractor Agreement Procedures

8. Procedures Continued

9. Procedures Continued

10. Procedures Continued

11. Independent Contractor Agreement NOTES • Legal services, insurance services or any type of accounting or auditing services cannot be processed as an ICA without special approval. • Bid limit ($10K) still applies on ICAs – even when written in a grant. (So contact Purchasing early.) • One time payments without a vendor code cannot be paid with a Direct Pay document.

12. Independent Contractor Agreement Wrap Up Contact Purchasing: • If you would like personal ICA training for anyone in your area. • If you have suggestions of how we can do this better • With any additional questions