Skip To Main Content

Request to Pay Independent Contractor Fee Instructions

Basics

If a non-TAMUS 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 a purchase requisition, then a “Request to Pay Independent Contractor Fee” form must be completed to determine if the individual is an independent contractor. This includes payments to research collaborators named in a sponsored agreement, guest speakers, contracted services such as copy editors, web designers, entertainers, etc. The completed and signed (certified) form must be attached to the AggieBuy document in order for the individual to be processed as an independent contractor (i.e., paid through Accounts Payable). Payments to individuals with a certified “Request to Pay Independent Contractor Fee” form are considered payments to independent contractors and are therefore subject to IRS Form 1099 reporting. Remember that for fees in excess of the delegated purchasing limit; a purchase requisition may be required, thus voiding the requirement of this form. Please check with the TEES Purchasing Office if you are unsure. The purchase requisition or “Request to Pay Independent Contractor Fee” form may not be approved if the payee appears to be an employee rather than an independent contractor. These payments must be handled through payroll rather than through AggieBuy. If you need assistance in these situations, please contact Engineering Human Resources & Payroll at 979-458-7699.

The “Request to Pay Independent Contractor Fee” form can be accessed via the A/P page under the “Forms” tab. The PDF includes a series of questions designed to determine if the person is truly an independent contractor (i.e., eligible to be paid through Accounts Payable) or if the person needs to be on payroll (the most conservative approach) and therefore not payable through Accounts Payable.

Payments made to a non-U.S. citizen must first be processed through the Glacier online nonresident alien tax reporting system prior to the 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. Also, you may want to review the “Fee/Stipend Paid to Non-U.S. Citizens” document available in the References page.

Filling Out the Form

Use the below guidelines to assist in completing the fields on a “Request to Pay Independent Contractor Fee” form.

Section A – Basic Information

  • FAMIS Dept Code: Enter dept code
  • Dept Contact Name: Provide a contact in your department
  • Phone or Email: Provide either the phone number or email of the department contact
  • Name of Individual to be Reimbursed: Provide the name of the individual in question. Their name must match the name provided on their tax return.
  • DBA name, if applicable: If the individual does business under another name, please provide that name if applicable.
  • Amount submitted for payment/reimbursement: Input the dollar amount that will be paid to this person.
  • Justification for the amount of the payment: Complete with how the amount of pay was determined.

Section B – Nature of Service To Be Performed

Please check only one. If you are unsure which to choose, contact the TEES Purchasing Office.

Choices are as follows:

  • Research Collaborator: Subject matter experts and evaluators named in a sponsored research proposal.
  • Guest Lecturer or Guest Speaker: List the title of lecture, date of lecture, and to whom it was presented in the specific description section.
  • Contracted Services: Examples include entertainers, security, copy editors, website design, data processing, and training services. If the amount is above the delegated purchasing limit in one fiscal year, please submit a non-catalog requisition in AggieBuy.
  • Professional Services: (This is the least common situation). Must be within the scope of practice as defined by state law and the person is providing the service in connection with his or her professional employment/practice. Attach qualifications prior to submission.

Section C – Employee vs. Independent Contractor

  • Part I (Relationship with TEES) - if question 1, 2, or 3 is marked “YES,” the individual must be classified as an employee. Question 4 is needed as prior employees may not be paid as independent contractors if they are designated in Workday as “Not Eligible for Rehire”. Please check with HR or the individual to answer the question accurately. Do not continue if answer is NO. If question 5 is marked “YES,” please complete a signed “State of Texas Employee Statement” that can be found in the Forms.
  • Part II (Classification Guidelines) - complete ONLY grouping a, b, or c based on selection in Section B.
    • If you answered “Research Collaborator,” only fill out part a.
    • If you answered “Guest Lecturer/Speaker” only fill out part b.
    • If you answered “Contracted Services” or “Professional Services,” only fill out part c.
  • Part III (Classification) - select either “Employee” or “Independent Contractor” based on the answers provided in Section C.I. (Relationship with TEES) and Section C.II (Classification Guidelines). Please read the red certification statement.
    • Select “Yes” to accept the statement and continue the process. The faculty / staff certifying should sign, print their name, and enter the signature date.
    • If No is selected, do not submit a requisition as Accounts Payable cannot process the payment as an independent contractor.

Section D –Citizenship Guidelines

If the individual is a U.S. Citizen or legal resident alien, select “YES.” If not, select “NO” and move on to question 2. If question 1 is answered “NO” and question 2 is answered “YES,” the individual needs to complete the Glacier tax software. Be sure the Glacier tax summary report and all documents required by the tax summary report are attached to the AggieBuy document prior to submission.

As a reminder, regardless of citizenship, the independent contractor will need to be setup as a vendor in AggieBuy prior to the document submission. Review the Vendor Setups documentation on the Vendor Setup.

Section E-Vendor Certification

If no invoice is submitted by the individual, then the individual must sign and date this form as certification that the work has been performed. If they did submit an invoice, this section can be left blank.