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Independent Contractor Payment Guide

This guide provides general information about the process used to pay an independent contractor.​

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  • Before you start
    The services of an independent contractor can only be used once approval has been obtained by Accounting Services via the Independent Contractor Request Docusign form for both new requests and change orders.

    To request use of an independent contractor, complete all blank fields on the Independent Contractor Request DocuSign form. Once completed, sign, and click "Finish". The form will then be automatically routed to Accounting Services for review. If Accounting Services approves the use of an independent contractor, the form will be signed and you will receive an email notification stating your document has been completed. Click on the "View completed document" link within the email and save a PDF of the completed form. Create a requisition in CruzBuy and ensure to attach the PDF of the completed form when submitting.

    IMPORTANT NOTE: If Accounting Services determines that an individual does not meet the qualification standards to be treated as an independent contractor, a requisition should not be submitted. If this occurs, contact your HR department if you are interested in hiring the person as an employee.

    Contact Accounting Services, at ab5@ucsc.edu, for further guidance.​​​
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  • Ways to pay

    This type of expense must be procured using CruzBuy. For more information about CruzBuy and the purchase order process, see Procurement Resources.

    • A direct payment cannot be made to the vendor.
    • The Campus Purchasing Card cannot be used to procure this good or service.
    • Out-of-pocket payment for this type of good or service will not be reimbursed.

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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, Section H.2 “Special Travel Situations: Non-University Travelers" for additional details.

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  • Receipt and documentation requirements

    The original vendor invoice must be submitted in order for a payment to be made to the vendor.

    • The invoice must indicate the location where the contracted service was performed.
    • Email the FAST/AP Office at aphelp@ucsc.edu authorizing payment when the original purchase order amount is exceeded by $100.00 to $499.99.
    • Submit a change order request through CruzBuy for payments of $500.00 or more over the original purchase order amount.

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  • Authorizations and approvals

    A business contract to secure the services of an independent contractor may only be signed by the following individuals:

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

    Vendor Invoice: A payment on an invoice associated with a purchase order coded with a “UCSC42” in the commodity description field must be reviewed and signed by an authorized departmental or divisional employee prior to its submission to Accounts Payable for payment.

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  • Policy references

    BFB-BUS-43 Purchases of Goods and Services; Supply Chain Management

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  • Where to get help

    Contact Accounting Services, at ab5@ucsc.edu, for further guidance.

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