Personal Service Contracts Policy

Section I

Purpose

The purpose is to provide a means of contracting with non-state employees for services performed for the benefit of the University.

Section II

Procedure

This article describes employment and non-employment circumstances for payment. Employees must be paid through payroll. Incorporated businesses are to be paid through the normal vendor billing/accounts payable system using the Personal Services Contract

"Personal Services Contracts", for non-employees and non-business situations, are appropriate for:

  1. Use on a recurring basis regardless of remuneration amount or
  2. Use on a "one-time" non-recurring basis when remuneration is expected.

Blank contract forms are supplied and maintained by the Business Office. Administration expects the completion of the form prior to the performance of duties, which includes the contractor's name, complete mailing address, and social security number. Payment cannot be made without these items listed on the form as they are required for Internal Revenue Service reporting.

After approval by Business Office staff, the completed form is sent to the vendor for  contractor's signature; the contractor’s signature must be notarized for any contract that exceeds $7,500. Following the acquiring of the contractor's signature, the contract should be sent to the Purchasing Coordinator in the Business Office. A check will be issued and mailed to the contractor after the service date. Should a reschedule or cancellation become necessary, please notify the Business Office immediately.

It may be possible to use a Personal Services Contract if a person is furnishing his or her own equipment, pays his or her own expenses, has contracted for a specific event or performance, or when the price may vary directly with output or performance. In these cases, it is customary to pay on a contract basis for this service. It also may be possible to use a Personal Services Contract if a person is performing the same service for others. Examples of such persons are music performers, designers, consultants, machine servicers', speakers, providers of private lessons in arts, sports, and other areas. A Personal Services Contract is required for the professional services of lawyers, auditors, architects and medical providers.

Persons compensated under a Personal Services Contract are expected to provide their own liability insurance, rather than be covered by the institution's liability insurance and industrial accident insurance for work-related conditions and accidents. (Revised 7/2008)