Independent Contractor Payments

An Independent Contractor is an individual or organization engaged in a specialized occupation contracted to perform a particular service and/or produce an agreed-upon outcome where there is no right to specifically control and direct the manner in which the job is done. This includes an individual who operates a business under an assumed name, such as John Smith doing business as Acme Services.

Generally, an Independent Contractor:

  • Sets the sequence of tasks needed to accomplish the work;
  • Is subject to the instructions outlined in the contract but is not instructed by the university about how, when, or where to work;
  • Furnishes own supplies;
  • May hire, compensate, and supervise others to assist in the completion of the work. The decision to hire assistants is solely within the control of the Independent Contractor;
  • Bears all business expenses associated with the performance of the work, including insurance, travel, meals and lodging--unless otherwise negotiated as specified in the Independent Contract agreement;
  • Provides the equipment and place to perform the service where it is customary trade practice to do so;
  • Cannot be discharged if the contract specifications are being met;
  • Cannot terminate the service contract with the university without incurring a liability;
  • Makes services available to the general public;
  • Is not providing services that become integrated into the day-to-day operations of the university;
  • Chooses own working hours;
  • Is paid a fixed fee;
  • Is not subject to training by the university and uses own methods to accomplish the work.

If you require the services of an Independent Contractor or require assistance in determining whether or not a provider should be treated as an Independent Contractor, please follow the instructions on the Human Resources Web pages at Human Resources - Forms - Independent Contractor.

To request the services, you must submit both an approved Funds or Materials Request (KU-4) form and an approved Independent Contractor Agreement (available on the Human Resources Web pages at Human Resources - Forms - Independent Contractor) to the Purchasing Department. Once the requisition is authorized a purchase order will be issued to the Independent Contractor. Purchasing must issue a valid purchase order number before any billable services are provided.

The Independent Contractor is to send all invoices directly to Accounts Payable for processing. You will be required to approve all invoices and request receiving on the services invoiced prior to payment.

Please Note: If you use services which are provided by an incorporated business and payment is issued directly to the company, you do not need an Independent Contractor Agreement. Follow the instructions within the Purchasing Guidelines to obtain a Purchase Order for this type of vendor services.