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Consultant Payment Guide

This guide provides general information about the process used to pay an individual or organization of proven professional or technical competence providing professional or technical advice to a campus customer.

Consultant services are provided by a vendor when the University has neither the right to control the result of the vendor’s service nor control the way in which the service is provided. The services of a consultant are procured through a UCSC business agreement. Information on how to do this is available from the Procurement Services Office. Independent contractor services are provided by a vendor when the University has the right to control the result of the vendor’s service, but not the way in which the service is provided. In these cases, refer to the Independent Contractor Payment Guide for more information. ​​​​​​

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  • Before you start

    Important information to know.

    1. Special conditions: Be aware of the following special conditions applying to this type of transaction.
      • A contract to secure the services of an independent consultant
        • must originate in Procurement Resources, and
        • may only be approved by a limited number of campus officials.
    2. Avoid conflicts of interest. Refer to the appendices for information covering employee-vendor conflict of interest issues.
    3. Tax information. Payments may only be made to recipients with a Social Security Number or an Individual Taxpayer Identification Number (ITIN). Use IRS Form W-7 Application for IRS Individual Taxpayer Identification Number to apply for an ITIN number.
    4. Payment: If this is the first time the recipient will be receiving a UCSC non-payroll payment, complete a Payee Setup 204 form.

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  • Ways to pay

    The services of a consultant may only be procured using a UCSC business agreement. Information on how to do this is available from Procurement Resources.

    • A purchase order is produced after the business contract is executed.

    Payment restrictions:

    • The campus purchasing card (Pro-Card) cannot be used to procure this service.
    • A direct payment cannot be made to the vendor for this service

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  • Reimbursement of travel expenses

    Reasonable, properly substantiated travel expenses incurred by independent contractors or consultants are expected to be included as part of the pre-negotiated fee for services covered under a UCSC purchase order contract.

    • Buyers should note in the PO text that the consultant/independent contractor's fee includes travel costs, or if
    • Travel will be billed to UCSC as a separate line item. Buyers should determine the maximum to be reimbursed and set up a separate line item for travel costs on the purchase order

    Reportable 1099 travel:

    • The vendor's invoice should include original required itemized receipts. Receipted travel costs are treated as reimbursements and are not subject to 1099 reporting
    • Unsubstantiated expenses (required receipts not included with billing) are treated as income and hence are subject to 1099 reporting

    Refer to the UC Business and Finance Bulletin G-28, p. 40, Section XI.B.3 “Special Travel Situations – Independent Contractors and Consultants” for additional details.


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  • Authorization and approvals

    Business Contract: A business contract to secure the services of an independent consultant may only be signed by the individuals with one of the following titles:

    • Chancellor
    • Executive Vice Chancellor
    • Vice Chancellor
    • Assistant Chancellor
    • Director, Materiel Management, or authorized designee

    Vendor Invoice: Each invoice must be reviewed and signed (i.e. approved) by an authorized departmental or divisional employee prior to its submission to the Financial Administrative Services and Transaction Office (FAST/AP) for payment.


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  • Where to get help

    Assistance is available for the following topics:

    • Business contracts: contact: buy4me@ucsc.edu
    • Employee-Vendor Conflict of Interest Evaluation Form-related questions: Procurement Resources
    • For all other question, please contact the FAST/AP Help line at 459-4488 with questions or locate your representative directly.

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  • Relevant Appendices

    GLACIER Guide for Foreign National Tax Compliance System

    Foreign National Visitor/Non-Resident Alien Requirements





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