HUMAN RESOURCES - Payroll Department

Use this form when paying an individual for a service, who is using a social security number, who is not employed by or associated with The University of Iowa, who may be working under a consultant or contractual agreement, or who is an independent contractor.

Generally, any person providing a service similar to what we have employees doing on campus may need to be treated as an employee of The University of Iowa. In these cases, please refer to IRS Publication 1779 at www.irs.gov. To obtain guidance on which Payroll forms to use, please contact Marianne Stratton 335-2420 or Katie Villhauer 335-2380 at the Payroll Office.

A written Professional Services Agreement (PSA) must be used for individuals who are not University employees and who receive payments from the University of $5,000 or more per project year. Please refer to the policies and procedures on the PSA for more information.

SECTION I

Name must correspond with correct social security number. If the payee does not have a valid U.S. social security number, please indicate so. Do not use an Employer Identification Number (EIN) on this form.

SECTION II

Full Time Federal Employee: may be restricted from consultant fee payments from federal funds.

Primarily a UI Student or University of Iowa Employee: generally, students, current employees and those employed in the previous calendar year are excluded from being paid as Independent Contractors (Consultants) by the "arms length transaction" or continuing relationship rules.

State of Iowa Employee (not UI): The University of Iowa has established procedures in accordance with the Board of Regents and the Iowa Code which govern business transactions involving conflict of interest (COI) situations. Please refer to the Purchasing Department website for information at http://www.uiowa.edu/purchasing/policy/appvd_coi_vndrs.htm

Relative of the Project Director: may constitute a conflict of interest. Please refer to the UI policies on conflict of interest at: http://www.uiowa.edu/~our/opmanual/ii/18.htm

SECTION III

Please provide complete Contact Information.

If the payee is not a U.S. citizen, a resident of U.S. territories or a resident alien for tax purposes federal tax will be withheld. The payee in this case must complete the FNIS (Foreign National Information System) form. The department must provide Payroll with an email address for the visitor prior to his/her arrival. Payroll will send a questionnaire directly to the visitor to gather immigration information. Please be aware that failure to supply the recipient's e-mail address or failure to complete the questionnaire may delay the payment. Payroll will wait a maximum of 2 weeks for the questionnaire to be returned via email. If we do not receive a response, the Payroll Office will withhold taxes at the maximum rates to ensure compliance with state and federal law.

Requirements affecting nonresident aliens coming to the U.S. in order to participate in academic activities when an honorarium may be awarded can vary. Usually these nonresidents come as Visiting B or Visa Waiver (VW) non immigrant aliens. Rules exist that determine whether or not payment is allowed. The criteria for payment are:

1. the academic activity cannot last longer than 9 days at any given institution.
2. the nonresident has not accepted payment or reimbursement for expenses from more than 5 institutions or organizations in the previous 6-month period.

For these individuals, a Compliance Statement must be completed and included with the Payroll Voucher. Both forms are located on the Payroll website. If the individual refuses to sign the W-8Ben or won't submit one, there will be a $50 fine charged to the department. Contact Xuefen Zhen 353-2460 or Katie Villhauer 335-2380 with questions about these rules.

SECTION IV

Provide the dates of service for this payment and a specific, detailed description of service. (i.e. name and /or location of conference or project, honorarium for what type of service, spoke to whom, additional details regarding the consulting service provided, etc.)

SECTION V

Provide the complete MFK to be charged. Payroll vouchers require an Institutional account in the 6000 series, excluding Travel IACT numbers 6025-6064. Indicate the gross amount of compensation to be paid.

SECTION VI

Obtain two authorized signatures. Some departments and colleges may require additional signatures. For information about your specific signature approval requirements, please contact your HR Unit Rep.

Complete the Special Handling Instructions fields if necessary

All paper Payroll Vouchers should be sent to the Payroll Office, 120-30 USB for audit. After audit is complete, vouchers will be forwarded to the Accounts Payable Department, 202 PCO, for processing and payment. Payment status can be viewed on-line in the Self Service Website under the Administration/Data Access tab "AP/PO Peoplesoft".