TCU has two ways to pay individuals for services performed for the university, one is through the Human Resources Payroll and the other is through Financial Services Accounts Payable. How an individual is paid depends on if they are considered a staff member or if they are eligible to be categorized as an independent contractor. An individual cannot be in both categories. If someone is already on the payroll as a staff member and are currently receiving a paycheck from the university they remain a staff member regardless of department affiliation.
Anyone who performs services for the university is a TCU staff member if the supervisor controls what will be done and how it will be done. This is the case even when you give the staff member freedom of action. The key is TCU has the right to control the details of how the services are performed. The majority of individuals performing services for the university fall in this category. An employer must generally withhold income taxes and withhold and pay social security/Medicare taxes on wages paid to staff member.
Definition An individual is considered an independent contractor if TCU has the right to control or direct only the result of the work and not the means and methods of accomplishing the result. A key consideration is whether TCU has retained the right to control the details of a worker’s performance or has given up that right. If an individual is hired with the expectation that the relationship will continue indefinitely, rather than for a specific project or period, this is generally considered evidence that the intent was to create an employer-employee relationship. If you classify an individual as an independent contractor and you have no reasonable basis for doing so, the university may be held liable for employment taxes and incur penalties for that worker. Additional information is available in Human Resources about contract labor.
You are requested to use the following authorized forms to submit compensation payments for individuals who perform services for the university –
1.Human Resources Payroll
Personnel Action Form (PAF) – Send to Human Resources for all payments for services performed by individuals who meet the definition of staff.
Finance Accounts Payable
Honorarium Request – Send to Accounts Payable for individuals who meet the definition of contract labor.
2.Finance Accounts Payable
Invoice – Send to Accounts Payable for payment of services performed for the university by an individual or company that meets the definition of contract labor.
Human Resources Process
Personnal Action Form PAF – Use the additional pay portion of this form for payments of all types for anyone who is an active faculty, staff member or student on the Human Resources Information System.
Account Codes – The appropriate account codes will be monitored and corrected in HR as forms are processed.
6110 – Budgeted ongoing stipends
6111 – Incidental one-time stipends
Finance System Accounts Payable Process
Honorarium Request and Invoices – Use these forms to pay individuals that are not employees of the university who have performed a service for a department at the university.
Account Codes – The appropriate account codes will be monitored and corrected in AP as forms are processed.
6103 – honorarium
6603 – professional services
6630 – consultant fees