When Texas A&M Engineering Experiment Station (TEES) (CC28) funds are used to process a payment directly to an individual not employed by The Texas A&M University System, there are two completely distinct methods depending on the type of payment.
1. Fees (or non-receipted expenses) for independent contracted services rendered by nonemployees
If a non-A&M System employee is to be paid a fee for a service (or reimbursed for any non-receipted expenses such as lodging or meals) that does not require an AggieBuy requisition, then the “Request to Pay Independent Contractor Fee” form must be completed and attached to the AggieBuy non-PO based invoice. The form and instructions are located on the Forms section of the A/P website.
This includes payments to research collaborators named in a sponsored agreement, guest speakers, contracted services such as copy editors, web designers, entertainers, etc. Payments through AggieBuy to individuals are considered payments to independent contractors and are subject to IRS Form 1099 reporting. On some occasions, the AggieBuy documents involving an independent contractor may not get approved because the payee appears to be an employee. These payments must be handled through payroll rather than through AggieBuy (the Fiscal Office purchasing system). If you need assistance in these situations, please contact the TEES HR and Payroll offices.
2. Stipend Payments (those not in return for services rendered)
If a non-A&M System employee/non-A&M System student is receiving a stipend payment (i.e., payment not supported by receipts, such as participant support stipend or visiting scholar stipend) made through TEES Accounts Payable, then the “Stipend Payment Form” must be completed and attached to the AggieBuy non-PO based invoice. The typical commodity code in this situation is 99900385 (object code 6383). The form and instructions are located on the Forms section of the A/P website. Please also note that if the individual is a student at an A&M System institution but is neither enrolled for summer school sessions nor employed by the institution during the summer, then a stipend can be processed during those summer months.
As a reminder, payments made under either one of these scenarios to a non-U.S. citizen must first be processed through the Glacier online nonresident alien tax reporting system prior to date of the engagement in order to address potential mandatory IRS income tax withholding requirements. The TEES Payroll Office (979.458.7493) can assist you with this process. Please review the “Fee/Stipend Paid to Non-U.S. Citizens” document available on the A/P website under the “References” tab to understand the AggieBuy document process in situations that require taxation.