Independent Contractors

The Internal Revenue Service generally considers a worker to be an independent contractor (IC) if the person:

• Determines place and sequence of work.
• Is not trained (by the university) for the job.
• Possesses special skills or training.
• Provides a service not related to payer's normal business activities.
• Has the option to delegate work to others (not university employees).
• Employs own assistants.
• Works by the job.
• Sets own work hours.
• Generally works off-site.
• Can set own schedule (work flow).
• Files reports when job ends; interim reports possible (does not submit regular reports).
• Pays own business and travel expenses; part of job costs.
• Furnishes own tools and equipment.
• Has significant investment in facilities used.
• Can make a profit or suffer a loss if the project is not completed.
• Works for several companies at one time.
• Makes services available to the general public.
• Cannot be fired if results satisfy the contract.
• Must complete job according to contract specifications.

The Internal Revenue Service generally considers a worker to be an employee if the person:

• Maintains a continuing relationship with the employer.
• Does the work personally (does not delegate work to non-employees).
• Is required to comply with instructions.
• Usually works full-time for one employer.
• Is subject to dismissal.
• Can quit without incurring a liability.
• Is reimbursed for expenses.
• Is trained by the employer (or supervised).
• Provides services that are a key aspect of regular business (university) activities.

1. Create a requisition in ShopBlue
   • If services have not yet begun, enter as a Standing Order Request
   • If services are ongoing, enter as a Standing Order Request
   • If services have been completed and invoice(s) need to be paid, enter as a Payment Request
2. When completing the requisition, enter the following information:
   • Supplier: If independent contractor cannot be found, or has not been used before, enter and select "New Supplier"
   • Completed Attachments:
     • Required for Standing Order Request:
       • W-9 Tax Form for U.S. Vendors (UB Version) or W-8 Tax Form for Foreign Vendors
       • Working Relationship Form
       • Sole or Single Source Justification Form or competitive quotes or proposals (if over $10,000)
       • Advance Approval Form
       • Any other relevant documentation such as grant award or scope of work
     • Required for Payment Request:
       • W-9 Tax Form for U.S. Vendors (UB Version) or W-8 Tax Form for Foreign Vendors
       • Working Relationship Form
       • Sole or Single Source Justification Form or competitive quotes or proposals (if over $10,000)
       • Exception for Confirming Received Requests Form
       • Payment Approval Form
       • Invoice
       • Any other relevant documentation such as grant award or scope of work
     • Required if over $50,000, in addition to the other attachments listed:
       • Independent Contractor Agreement (Purchasing and Contract Services will sign on behalf of the Research Foundation; see Additional Guidelines and Information section)
   • Buyer Commodity: Independent Contractor
   • Accounting Codes: Project Task Award (PTA) numbers
3. Once the requisition is complete, select Place Order. The requisition will be automatically routed through ShopBlue to the following groups for their approval:
   • Purchasing and Contract Services
   • Sponsored Projects Services or Grants Management
   • Research Foundation PTA cost approver(s)
   • Accounts Payable (if done as a Payment Request Form)
4. When all approvals are entered into ShopBlue, a Purchase Order (PO) will be generated
5. For independent contractor payments, create a receiver against the Purchase Order
6. Email invoice(s) and Payment Approval Form to apinvoice@business.buffalo.edu and reference the Purchase Order (PO) number.  If invoices are sent physically, mail to:

University at Buffalo
Accounts Payable
206 Crofts Hall
Buffalo, NY 14260

1. Enter the requested information in the Advance Determination of Independent Contractor Form. Required information is indicated with an asterisk.
2. The request will be sent to Research Foundation Human Resources (RF HR) upon submission. The requestor will receive an email confirmation of the submission.
3. RF HR will review and determine if it is appropriate that the individual is paid as an Independent Contractor (IC).
4. Upon review by RF HR, the requestor will be notified of the determination with instructions for the next steps.  If classified as an IC, the request will be processed by Purchasing and Contract Services.  If it is determined that the individual is not an IC, the request will need to proceed differently.

Previous classification of an independent contractor request does not indicate that the current request will also be approved.

If individual is determined to be an independent contractor by RF HR, payment options for independent contractors include:

• Paper Check: IC will be paid via physical check
  
• ACH Payment: It is the responsibility of the IC to complete the ACH Enrollment Form
  
• Wire Transfer: Information to include on the IC invoice: 
  • Bank name (beneficiary’s bank); include SWIFT code for a foreign bank
  • Beneficiary customer name and account number (to be credited to)
  • Details of payment (to be included on the invoice)
    

• If changes are needed, including increases, contact the buyer with the requested change and a change order will be processed
• For travel reimbursement for independent contractors, complete a Non-Employee Travel Voucher for Research Foundation for allowable expenses
• If the principal investigator, administrator or delegates require ShopBlue training, it can be found and requested on the ShopBlue e-Procurement System page
• If an administrator or delegate requires RF cost approver access, they may be added as an account approver by completing the Approver Authorization Request for Research Foundation form
• If desired, it is the responsibility of the independent contractor to enroll in ACH payments directly with SUNY RF.
• As this is now a purchasing transaction, purchasing policies and guidelines will need to be followed:
  • Justifications will be forgiving initially. As transition progresses, competitive proposals or quotes will be needed for independent contractors receiving over $10,000 if they are not named in the grant award.
  • Prior approval in the form of a Purchase Order, created using the instructions on this page, will need to be in place prior to services being received. See the Confirming Received Guidelines for more information.
  • In accordance with the Approval Authority Policy, no member of the university may sign or otherwise execute an Independent Contractor Agreement (procurement contract) that binds the university unless he or she has been delegated signature authority. Signature authority must be documented in writing and on file as set forth in this policy. Independent Contractor Agreements signed by employees without documented signature authority may be deemed void. In such circumstances, these individuals may be personally liable for the obligations assumed under such contracts and may be subject to disciplinary action.

Email invoices and payment related inquiries to: icinvoice.ap@buffalo.edu